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.


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

2.2%

GRPN

1.1%

US Online Retail

1.0%

US Market


1 Year Return

-19.7%

GRPN

5.8%

US Online Retail

6.7%

US Market

Return vs Industry: GRPN underperformed the US Online Retail industry which returned 5.8% over the past year.

Return vs Market: GRPN underperformed the US Market which returned 6.7% over the past year.


Share holder returns

GRPNIndustryMarket
7 Day2.2%1.1%1.0%
30 Day-3.8%-5.1%-1.8%
90 Day-17.5%-8.3%-1.8%
1 Year-19.7%-19.7%5.9%5.8%9.1%6.7%
3 Year-44.6%-44.6%77.5%77.3%46.1%36.6%
5 Year-54.6%-54.6%181.2%169.0%66.9%48.6%

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?

20%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: GRPN ($2.82) is trading below our estimate of fair value ($3.52)

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


Price Based on Earnings

PE vs Industry: GRPN is poor value based on its PE Ratio (269.9x) compared to the Online Retail industry average (32.3x).

PE vs Market: GRPN is poor value based on its PE Ratio (269.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: GRPN is poor value based on its PEG Ratio (5.5x)


Price Based on Value of Assets

PB vs Industry: GRPN is overvalued based on its PB Ratio (5.2x) compared to the US Online Retail industry average (2.7x).


Next Steps

Future Growth

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

49.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: GRPN's forecast earnings growth (49.4% per year) is above the savings rate (2.7%).

Earnings vs Market: GRPN's earnings (49.4% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: GRPN's revenue (0.6% per year) is forecast to grow slower than the US market (7.3% 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 Estimates


Future Return on Equity

High Future ROE: GRPN's Return on Equity is forecast to be high in 3 years time (28.4%)


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

Earnings Trend: GRPN has become profitable over the past 5 years, growing earnings by 21.4% 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 (-15.1%).


Return on Equity

High ROE: GRPN's Return on Equity (6%) is considered low.


Return on Assets

ROA vs Industry: GRPN's Return on Assets is below or equal to the Online Retail industry average last year.


Return on Capital Employed

ROCE Improving: GRPN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Groupon's financial position?


Financial Position Analysis

Short Term Liabilities: GRPN's short term assets ($762.6M) exceeds its short term liabilities ($749.7M)

Long Term Liabilities: GRPN's short term assets (762.6M) exceeds its long term liabilities (383.4M)


Debt to Equity History and Analysis

Debt Level: GRPN's debt to equity ratio (68%) is considered high

Reducing Debt: Insufficient data to determine if GRPN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GRPN's debt is well covered by operating cash flow (56.6%).

Interest Coverage: GRPN's interest payments on its debt are well covered by EBIT (4.6x coverage).


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 3.664570x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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 .


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?

3.8yrs

Average management tenure


CEO

Rich Williams (44yo)

3.9yrs

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 ($USD10.09M) is about average for companies of similar size in the US market ($USD4.08M).

Compensation vs Earnings: Rich's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

46.5yo

Average Age

Experienced Management: GRPN's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

59yo

Average Age

Experienced Board: GRPN's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: GRPN 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


Management Team

  • Eric Lefkofsky (49yo)

    Chairman of the Board

    • Tenure: 3.9yrs
    • Compensation: US$300.00k
  • Jacob Hawkins (43yo)

    Head of North American Goods

    • Tenure: 3.8yrs
  • Steve Krenzer (60yo)

    Chief Operating Officer

    • Tenure: 1.9yrs
    • Compensation: US$1.96m
  • Dane Drobny (51yo)

    General Counsel & Corporate Secretary

    • Tenure: 5.3yrs
    • Compensation: US$2.41m
  • Rich Williams (44yo)

    CEO & Director

    • Tenure: 3.9yrs
    • Compensation: US$10.09m
  • Brian McCallister

    Chief Technology Officer of Platform

    • Tenure: 6yrs
  • Alison Allgor

    Senior Vice President of Human Resources

    • Tenure: 4.2yrs
  • Heather Davis

    VP & Head of Investor Relations

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

    Senior VP

    • Tenure: 0.2yrs
    • Compensation: US$812.07k
  • Craig Rowley

    Chief Marketing Officer

    • Tenure: 0.6yrs

Board Members

  • Peter Barris (67yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$270.00k
  • Ted Leonsis (63yo)

    Lead Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$265.00k
  • Mike Angelakis (54yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$250.00k
  • Eric Lefkofsky (49yo)

    Chairman of the Board

    • Tenure: 3.9yrs
    • Compensation: US$300.00k
  • Ann Ziegler (61yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$250.00k
  • Deb Wahl (57yo)

    Director

    • Tenure: 2yrs
    • Compensation: US$325.00k
  • Bob Bass (70yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$280.00k
  • Rich Williams (44yo)

    CEO & Director

    • Tenure: 3.9yrs
    • 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$1.601b
  • Shares outstanding: 567.62m
  • 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
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 Analysis2019/10/14 02:48
End of Day Share Price2019/10/11 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.

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