NasdaqGS:GRPN

Stock Analysis Report

Executive Summary

Groupon, Inc. operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount in North America and internationally.

Rewards

Trading at 28.2% below its fair value

Earnings are forecast to grow 61.82% per year

Risk Analysis

No risks detected for GRPN from our risk checks.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Groupon's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GRPN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

GRPN

0.7%

US Online Retail

1.1%

US Market


1 Year Return

-9.5%

GRPN

14.3%

US Online Retail

17.8%

US Market

Return vs Industry: GRPN underperformed the US Online Retail industry which returned 14.3% over the past year.

Return vs Market: GRPN underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

GRPNIndustryMarket
7 Day2.2%0.7%1.1%
30 Day0.7%1.0%1.4%
90 Day2.4%0.07%3.9%
1 Year-9.5%-9.5%14.4%14.3%20.3%17.8%
3 Year-18.7%-18.7%98.0%97.8%44.8%35.4%
5 Year-58.8%-58.8%173.1%161.3%71.3%52.4%

Price Volatility Vs. Market

How volatile is Groupon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Groupon undervalued compared to its fair value and its price relative to the market?

28.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GRPN ($2.96) is trading below our estimate of fair value ($4.12)

Significantly Below Fair Value: GRPN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GRPN is unprofitable, so we can't compare its PE Ratio to the Online Retail industry average.

PE vs Market: GRPN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GRPN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GRPN is overvalued based on its PB Ratio (5.6x) compared to the US Online Retail industry average (2.5x).


Next Steps

Future Growth

How is Groupon forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

61.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRPN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: GRPN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GRPN's is expected to become profitable in the next 3 years.

Revenue vs Market: GRPN's revenue (0.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: GRPN's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GRPN's Return on Equity is forecast to be high in 3 years time (31.4%)


Next Steps

Past Performance

How has Groupon performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRPN is currently unprofitable.

Growing Profit Margin: GRPN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GRPN is unprofitable, but has reduced losses over the past 5 years at a rate of 19.7% per year.

Accelerating Growth: Unable to compare GRPN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GRPN is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (8.2%).


Return on Equity

High ROE: GRPN has a negative Return on Equity (-14.49%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Groupon's financial position?


Financial Position Analysis

Short Term Liabilities: GRPN's short term assets ($705.0M) exceed its short term liabilities ($688.8M).

Long Term Liabilities: GRPN's short term assets ($705.0M) exceed its long term liabilities ($380.8M).


Debt to Equity History and Analysis

Debt Level: GRPN's debt to equity ratio (70.2%) is considered high.

Reducing Debt: GRPN had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: GRPN has a low level of unsold assets or inventory.

Debt Coverage by Assets: GRPN's debt is covered by short term assets (assets are 3.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable GRPN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GRPN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 35.3% per year.


Next Steps

Dividend

What is Groupon's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GRPN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GRPN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GRPN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GRPN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GRPN is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GRPN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Groupon's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Rich Williams (44yo)

4.1yrs

Tenure

US$10,093,972

Compensation

Mr. Rich Williams has been the Chief Executive Officer and Director of Groupon, Inc. since November 3, 2015. Mr. Williams had been the Chief Operating Officer of Groupon, Inc. since June 3, 2015 until Nove ...


CEO Compensation Analysis

Compensation vs Market: Rich's total compensation ($USD10.09M) is above average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Rich's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.0yrs

Average Tenure

46.5yo

Average Age

Experienced Management: GRPN's management team is considered experienced (4 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

59yo

Average Age

Experienced Board: GRPN's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$129,00004 Sep 19
Robert Bass
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceUS$2.58

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Eric Lefkofsky (49yo)

    Chairman of the Board

    • Tenure: 4.1yrs
    • Compensation: US$300.00k
  • Jacob Hawkins (43yo)

    Head of North American Goods

    • Tenure: 3.9yrs
  • Steve Krenzer (60yo)

    Chief Operating Officer

    • Tenure: 2.1yrs
    • Compensation: US$1.96m
  • Dane Drobny (51yo)

    General Counsel & Corporate Secretary

    • Tenure: 5.4yrs
    • Compensation: US$2.41m
  • Rich Williams (44yo)

    CEO & Director

    • Tenure: 4.1yrs
    • Compensation: US$10.09m
  • Brian McCallister

    Chief Technology Officer of Platform

    • Tenure: 6.2yrs
  • Alison Allgor

    Senior Vice President of Human Resources

    • Tenure: 4.3yrs
  • Heather Davis

    VP & Head of Investor Relations

    • Tenure: 0yrs
  • Melissa Thomas (39yo)

    Senior VP

    • Tenure: 0.3yrs
    • Compensation: US$812.07k
  • Craig Rowley

    Chief Marketing Officer

    • Tenure: 0.8yrs

Board Members

  • Peter Barris (67yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$270.00k
  • Ted Leonsis (63yo)

    Lead Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$265.00k
  • Mike Angelakis (54yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$250.00k
  • Eric Lefkofsky (49yo)

    Chairman of the Board

    • Tenure: 4.1yrs
    • Compensation: US$300.00k
  • Ann Ziegler (61yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$250.00k
  • Deb Wahl (57yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$325.00k
  • Bob Bass (70yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$280.00k
  • Rich Williams (44yo)

    CEO & Director

    • Tenure: 4.1yrs
    • Compensation: US$10.09m

Company Information

Groupon, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Groupon, Inc.
  • Ticker: GRPN
  • Exchange: NasdaqGS
  • Founded: 2008
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$1.672b
  • Shares outstanding: 564.73m
  • Website: https://www.groupon.com

Number of Employees


Location

  • Groupon, Inc.
  • 600 West Chicago Avenue
  • Suite 400
  • Chicago
  • Illinois
  • 60654
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRPNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2011
G5NDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2011
GRPNSWX (SIX Swiss Exchange)YesCommon StockCHCHFNov 2011
0R1HLSE (London Stock Exchange)YesCommon StockGBUSDNov 2011
GRPNWBAG (Wiener Boerse AG)YesCommon StockATEURNov 2011

Biography

Groupon, Inc. operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount in North America and internationally. The company provides deals i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:33
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.