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GRPN

Groupon NasdaqGS:GRPN Stock Report

Last Price

US$15.70

Market Cap

US$470.4m

7D

5.4%

1Y

-65.7%

Updated

26 Jun, 2022

Data

Company Financials +
GRPN fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance2/6
Financial Health2/6
Dividends0/6

GRPN Stock Overview

Groupon, Inc., together with its subsidiaries, operates a marketplace that connects consumers to merchants.

Groupon Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Groupon
Historical stock prices
Current Share PriceUS$15.70
52 Week HighUS$45.80
52 Week LowUS$11.17
Beta2.13
1 Month Change1.36%
3 Month Change-17.33%
1 Year Change-65.72%
3 Year Change-78.07%
5 Year Change-79.56%
Change since IPO-96.99%

Recent News & Updates

Jun 24

Groupon: We Officially Throw In A Towel

Groupon is being dragged through a new restructuring just as investors hoped the previous one to bear fruit. Company's Q1 numbers did not live up to expectations, revenue from services declining 11% y-o-y. We are not very optimistic about the initiatives of the new CEO and look for ways to exit the stock.

Jun 24
Groupon, Inc.'s (NASDAQ:GRPN) Intrinsic Value Is Potentially 69% Above Its Share Price

Groupon, Inc.'s (NASDAQ:GRPN) Intrinsic Value Is Potentially 69% Above Its Share Price

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Groupon, Inc...

Shareholder Returns

GRPNUS Online RetailUS Market
7D5.4%10.3%6.6%
1Y-65.7%-39.5%-18.4%

Return vs Industry: GRPN underperformed the US Online Retail industry which returned -39.7% over the past year.

Return vs Market: GRPN underperformed the US Market which returned -18.5% over the past year.

Price Volatility

Is GRPN's price volatile compared to industry and market?
GRPN volatility
GRPN Average Weekly Movement13.0%
Online Retail Industry Average Movement13.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: GRPN is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: GRPN's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
20083,675Kedar Deshpandehttps://www.groupon.com

Groupon, Inc., together with its subsidiaries, operates a marketplace that connects consumers to merchants. It operates in two segments, North America and International. The company sells goods or services on behalf of third-party merchants; and first-party goods inventory.

Groupon Fundamentals Summary

How do Groupon's earnings and revenue compare to its market cap?
GRPN fundamental statistics
Market CapUS$470.37m
Earnings (TTM)US$69.26m
Revenue (TTM)US$856.61m

6.8x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GRPN income statement (TTM)
RevenueUS$856.61m
Cost of RevenueUS$152.48m
Gross ProfitUS$704.13m
Other ExpensesUS$634.88m
EarningsUS$69.26m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.31
Gross Margin82.20%
Net Profit Margin8.09%
Debt/Equity Ratio175.2%

How did GRPN perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is GRPN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GRPN?

Other financial metrics that can be useful for relative valuation.

GRPN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA21.7x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does GRPN's PE Ratio compare to its peers?

GRPN PE Ratio vs Peers
The above table shows the PE ratio for GRPN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.9x

Price-To-Earnings vs Peers: GRPN is good value based on its Price-To-Earnings Ratio (6.8x) compared to the peer average (14.9x).


Price to Earnings Ratio vs Industry

How does GRPN's PE Ratio compare vs other companies in the U.S. Online Retail Industry?

Price-To-Earnings vs Industry: GRPN is good value based on its Price-To-Earnings Ratio (6.8x) compared to the US Online Retail industry average (15x)


Price to Earnings Ratio vs Fair Ratio

What is GRPN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GRPN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.8x
Fair PE Ratio15.9x

Price-To-Earnings vs Fair Ratio: GRPN is good value based on its Price-To-Earnings Ratio (6.8x) compared to the estimated Fair Price-To-Earnings Ratio (15.9x).


Share Price vs Fair Value

What is the Fair Price of GRPN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GRPN ($15.7) is trading below our estimate of fair value ($26.39)

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


Price to Earnings Growth Ratio

PEG Ratio: GRPN is good value based on its PEG Ratio (0.3x)


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Future Growth

How is Groupon forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


26.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRPN's forecast earnings growth (26.1% per year) is above the savings rate (1.9%).

Earnings vs Market: GRPN's earnings (26.1% per year) are forecast to grow faster than the US market (14% per year).

High Growth Earnings: GRPN's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GRPN's revenue (5.1% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: GRPN's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GRPN's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Groupon performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GRPN has a large one-off gain of $55.8M impacting its March 31 2022 financial results.

Growing Profit Margin: GRPN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GRPN has become profitable over the past 5 years, growing earnings by 12.1% per year.

Accelerating Growth: GRPN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GRPN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Online Retail industry (-12.8%).


Return on Equity

High ROE: Whilst GRPN's Return on Equity (38.71%) is high, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Groupon's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GRPN's short term assets ($509.2M) do not cover its short term liabilities ($579.3M).

Long Term Liabilities: GRPN's short term assets ($509.2M) exceed its long term liabilities ($305.0M).


Debt to Equity History and Analysis

Debt Level: GRPN has more cash than its total debt.

Reducing Debt: GRPN's debt to equity ratio has increased from 86% to 175.2% over the past 5 years.

Debt Coverage: GRPN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if GRPN's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GRPN has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Kedar Deshpande (42 yo)

0.50

Tenure

US$9,419,692

Compensation

Mr. Kedar Deshpande serves as Chief Executive Officer and Director at Groupon, Inc. since December 10, 2021. He previously served as the Chief Executive Officer of Zappos.com (“Zappos”) and in various posi...


CEO Compensation Analysis

Compensation vs Market: Kedar's total compensation ($USD9.42M) is above average for companies of similar size in the US market ($USD2.84M).

Compensation vs Earnings: Insufficient data to compare Kedar's compensation with company performance.


Leadership Team

Experienced Management: GRPN's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: GRPN's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GRPN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

Company Information

Groupon, Inc.'s 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
  • Implied Market Cap: US$470.372m
  • Shares outstanding: 29.96m
  • Website: https://www.groupon.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.