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.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.

Risks

  • Groupon has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-6.0%

NasdaqGS:GRPN

2.1%

US Online Retail

-1.0%

US Market


1 Year Return

-46.5%

NasdaqGS:GRPN

-2.1%

US Online Retail

-0.4%

US Market

GRPN underperformed the Online Retail industry which returned -2.1% over the past year.

GRPN underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

GRPNIndustryMarket
7 Day-6.0%2.1%-1.0%
30 Day-30.2%-5.7%-3.3%
90 Day-31.4%-1.0%0.4%
1 Year-46.5%-46.5%-2.1%-2.1%1.8%-0.4%
3 Year-57.4%-57.4%91.5%91.2%39.4%30.4%
5 Year-62.5%-62.5%214.8%192.2%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

31%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Groupon's share price is below the future cash flow value, and at a moderate discount (> 20%).

Groupon's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Groupon is overvalued based on earnings compared to the US Online Retail industry average.

Groupon is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Groupon is poor value based on expected growth next year.


Price Based on Value of Assets

Groupon is overvalued based on assets compared to the US Online Retail industry average.


Next Steps

Future Growth

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

49.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Groupon's revenue is expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).

Groupon's earnings are expected to grow significantly at over 20% yearly.

Groupon's revenue growth is positive but not above the United States of America market average.

Groupon's earnings growth is expected to exceed the United States of America market average.

Groupon's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Groupon is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Groupon performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Groupon has delivered over 20% year on year earnings growth in the past 5 years.

Groupon has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Groupon has become profitable in the last year making it difficult to compare the US Online Retail industry average.


Return on Equity

Groupon has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Groupon used its assets less efficiently than the US Online Retail industry average last year based on Return on Assets.


Return on Capital Employed

Groupon has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Groupon's financial position?


Financial Position Analysis

Groupon is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Groupon's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Groupon's level of debt (68%) compared to net worth is high (greater than 40%).

Unable to establish if Groupon's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (56.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.7x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Groupon's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Groupon's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Groupon has not reported any payouts.

Unable to verify if Groupon's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Groupon has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Groupon's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Rich Williams (44yo)

3.8yrs

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

Rich's remuneration is higher than average for companies of similar size in United States of America.

Rich's compensation has increased in line with Groupon recently becoming profitable.


Management Age and Tenure

3.5yrs

Average Tenure

47.5yo

Average Age

The tenure for the Groupon management team is about average.


Board Age and Tenure

3.8yrs

Average Tenure

59yo

Average Age

The tenure for the Groupon board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Steve Krenzer (60yo)

    Chief Operating Officer

    • Tenure: 1.8yrs
    • Compensation: $1.96m
  • Eric Lefkofsky (49yo)

    Chairman of the Board

    • Compensation: $300.00k
  • Craig Rowley

    Chief Marketing Officer

    • Tenure: 0.4yrs
  • Heather Davis

    VP & Head of Investor Relations

  • Rich Williams (44yo)

    CEO & Director

    • Tenure: 3.8yrs
    • Compensation: $10.09m
  • Melissa Thomas (39yo)

    Senior VP

    • Tenure: 0.8yrs
    • Compensation: $812.07k
  • Alison Allgor

    Senior Vice President of Human Resources

    • Tenure: 4.0yrs
  • Dane Drobny (51yo)

    General Counsel & Corporate Secretary

    • Tenure: 5.1yrs
    • Compensation: $2.41m
  • Brian McCallister

    Chief Technology Officer of Platform

    • Tenure: 5.8yrs
  • Mike Randolfi (46yo)

    Chief Financial Officer

    • Tenure: 3.3yrs
    • Compensation: $3.65m

Board Members

  • Peter Barris (67yo)

    Director

    • Tenure: 11.6yrs
    • Compensation: $270.00k
  • Ted Leonsis (63yo)

    Lead Independent Director

    • Tenure: 3.8yrs
    • Compensation: $265.00k
  • Mike Angelakis (54yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: $250.00k
  • Eric Lefkofsky (49yo)

    Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: $300.00k
  • Ann Ziegler (61yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: $250.00k
  • Deb Wahl (57yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: $325.00k
  • Bob Bass (70yo)

    Director

    • Tenure: 7.2yrs
    • Compensation: $280.00k
  • Rich Williams (44yo)

    CEO & Director

    • Tenure: 3.8yrs
    • Compensation: $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$1.340b
  • Shares outstanding: 567.62m
  • Website: Click here

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
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 AnalysisN/A
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
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.