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 Analysis

Adequate balance sheet with moderate 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

23.2%

GRPN

6.8%

US Online Retail

9.4%

US Market


1 Year Return

-74.4%

GRPN

5.7%

US Online Retail

-6.8%

US Market

Return vs Industry: GRPN underperformed the US Online Retail industry which returned 5.7% over the past year.

Return vs Market: GRPN underperformed the US Market which returned -6.8% over the past year.


Shareholder returns

GRPNIndustryMarket
7 Day23.2%6.8%9.4%
30 Day4.5%3.3%-3.9%
90 Day-64.2%-2.3%-16.5%
1 Year-74.4%-74.4%5.8%5.7%-4.8%-6.8%
3 Year-75.6%-75.6%82.7%82.4%23.4%15.2%
5 Year-87.6%-87.6%187.4%175.4%41.3%25.7%

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?

2.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GRPN ($0.89) is trading below our estimate of fair value ($0.91)

Significantly Below Fair Value: GRPN is trading below fair value, but not by a significant amount.


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 good value based on its PB Ratio (1.3x) compared to the US Online Retail industry average (2.3x).


Next Steps

Future Growth

How is Groupon forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

44.9%

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 is expected to decline over the next 3 years (-21.6% per year).

High Growth Revenue: GRPN's revenue is forecast to decline over the next 3 years (-21.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GRPN's Return on Equity is forecast to be low in 3 years time (7.7%).


Next Steps

Past Performance

How has Groupon performed over the past 5 years?

19.2%

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 19.2% 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 (18.4%).


Return on Equity

High ROE: GRPN has a negative Return on Equity (-3.62%), as it is currently unprofitable.


Next Steps

Financial Health

How is Groupon's financial position?


Financial Position Analysis

Short Term Liabilities: GRPN's short term assets ($887.9M) exceed its short term liabilities ($821.5M).

Long Term Liabilities: GRPN's short term assets ($887.9M) exceed its long term liabilities ($370.2M).


Debt to Equity History and Analysis

Debt Level: GRPN's debt to equity ratio (54.4%) is considered high.

Reducing Debt: GRPN's debt to equity ratio has increased from 0% to 54.4% over the past 5 years.


Balance Sheet


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, even with free cash flow being positive and shrinking by -17.8% per year.


Next Steps

Dividend

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


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 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

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

0.9yrs

Average management tenure


CEO

Aaron Cooper

0.083

Tenure

Mr. Aaron Z. Cooper serves as Interim Chief Executive Officer at Groupon, Inc. since March 2020. He has been the President of North America at Groupon, Inc. since July 20, 2017. Mr. Cooper served as its Se ...


Leadership Team

NamePositionTenureCompensationOwnership
Eric Lefkofsky
Chairman of the Board4.42yrsUS$300.00k5.36% $27.2m
Melissa Thomas
Senior VP0.67yrUS$812.07k0.019% $98.6k
Dane Drobny
General Counsel & Corporate Secretary5.75yrsUS$2.41m0.15% $738.3k
Aaron Cooper
President of North America & Interim CEO0.083yrno data0.043% $216.5k
Manju Gangadharan
Chief Accounting Officer0.17yrno data0.0067% $33.8k
John Higginson
Chief Technology Officer0.33yrno datano data
Heather Davis
VP & Head of Investor Relationsno datano datano data
Craig Rowley
Chief Marketing Officer1.08yrsno datano data
Alison Allgor
Senior Vice President of Human Resources4.67yrsno datano data
Brian McCallister
Chief Technology Officer of Platform6.5yrsno datano data

0.9yrs

Average Tenure

49yo

Average Age

Experienced Management: GRPN's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Eric Lefkofsky
Chairman of the Board4.42yrsUS$300.00k5.36% $27.2m
Peter Barris
Independent Director12.25yrsUS$270.00k0.15% $759.7k
Theodore Leonsis
Independent Director10.83yrsUS$265.00k0.27% $1.4m
Michael Angelakis
Independent Director4yrsUS$250.00k0.016% $82.1k
Ann Ziegler
Independent Director5.83yrsUS$250.00k0.023% $118.3k
Deborah Wahl
Director2.5yrsUS$325.00k0.0025% $12.6k
Helen Vaid
Independent Directorno datano datano data
Valerie Mosley
Independent Directorno datano datano data
Robert Bass
Independent Director7.83yrsUS$280.00k0.060% $303.0k
Rich Williams
Director4.42yrsUS$10.09m0.71% $3.6m

5.1yrs

Average Tenure

59yo

Average Age

Experienced Board: GRPN's board of directors are considered experienced (5.1 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 not been meaningfully diluted in the past year.


Top Shareholders

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$506.993m
  • Shares outstanding: 566.92m
  • 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 in various categories, including events and activities; health, beauty, and wellness; food and drink; home and garden; automotive; discounted and market rates for hotel, airfare, and package deals, as well as deals on various product lines, such as electronics, sporting goods, jewelry, toys, household items, and apparel. It offers its deal offerings to customers through Websites; search engines; mobile applications and mobile, which enable consumers to browse, purchase, manage, and redeem deals on their mobile devices; emails and push notifications; affiliate channels; social and display advertising; and offline marketing. The company was formerly known as ThePoint.com, Inc. and changed its name to Groupon, Inc. in October 2008. Groupon, Inc. was founded in 2008 and is headquartered in Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 08:44
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.