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

-41.7%

GRPN

-2.2%

US Online Retail

-1.1%

US Market


1 Year Return

-50.3%

GRPN

22.6%

US Online Retail

17.8%

US Market

Return vs Industry: GRPN underperformed the US Online Retail industry which returned 22.7% over the past year.

Return vs Market: GRPN underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

GRPNIndustryMarket
7 Day-41.7%-2.2%-1.1%
30 Day-44.4%6.6%1.5%
90 Day-42.5%13.8%6.6%
1 Year-50.3%-50.3%22.6%22.6%20.2%17.8%
3 Year-63.3%-63.3%104.6%104.3%47.5%38.1%
5 Year-79.7%-79.7%210.8%197.2%71.2%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?

2.37x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GRPN ($1.65) is trading above our estimate of fair value ($1.51)

Significantly Below Fair Value: GRPN is trading above our estimate of fair value.


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 (2.4x) compared to the US Online Retail industry average (3x).


Next Steps

Future Growth

How is Groupon forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

48.9%

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 (-18% per year).

High Growth Revenue: GRPN's revenue is forecast to decline over the next 3 years (-18% 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 (15%).


Return on Equity

High ROE: GRPN has a negative Return on Equity (-3.62%), 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 ($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

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 4.1x 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, 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

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%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

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

3.3yrs

Average management tenure


CEO

Rich Williams (44yo)

4.3yrs

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 ($USD10.09M) is above average for companies of similar size in the US market ($USD2.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Eric Lefkofsky
Chairman of the Board4.3yrsUS$300.00k13.31% $124.5m
Rich Williams
CEO & Director4.3yrsUS$10.09m0.62% $5.8m
Melissa Thomas
Senior VP0.5yrsUS$812.07k0.018% $166.5k
Steve Krenzer
Chief Operating Officer2.3yrsUS$1.96m0.077% $721.6k
Dane Drobny
General Counsel & Corporate Secretary5.6yrsUS$2.41m0.14% $1.3m
John Higginson
Chief Technology Officer0.2yrsno datano data
Heather Davis
VP & Head of Investor Relations0yrsno datano data
Craig Rowley
Chief Marketing Officer0.9yrsno datano data
Alison Allgor
Senior Vice President of Human Resources4.5yrsno datano data
Brian McCallister
Chief Technology Officer of Platform6.3yrsno datano data

3.3yrs

Average Tenure

50yo

Average Age

Experienced Management: GRPN's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Lefkofsky
Chairman of the Board4.3yrsUS$300.00k13.31% $124.5m
Rich Williams
CEO & Director4.3yrsUS$10.09m0.62% $5.8m
Peter Barris
Independent Director12.1yrsUS$270.00k0.15% $1.4m
Theodore Leonsis
Independent Director10.7yrsUS$265.00k0.27% $2.5m
Michael Angelakis
Independent Director3.8yrsUS$250.00k0.016% $151.4k
Ann Ziegler
Independent Director5.7yrsUS$250.00k0.023% $218.2k
Deborah Wahl
Director2.3yrsUS$325.00k0.0025% $23.3k
Robert Bass
Independent Director7.7yrsUS$280.00k0.051% $476.5k

5.0yrs

Average Tenure

59yo

Average Age

Experienced Board: GRPN's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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$935.411m
  • 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 Analysis2020/02/24 03:22
End of Day Share Price2020/02/21 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.