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Groupon

Nasdaq:GRPN
Snowflake Description

Adequate balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GRPN
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

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 last earnings update was 57 days ago. More info.


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GRPN Share Price and Events
7 Day Returns
-2.6%
NasdaqGS:GRPN
1.4%
US Online Retail
1.4%
US Market
1 Year Returns
-19.4%
NasdaqGS:GRPN
2.3%
US Online Retail
4.9%
US Market
GRPN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Groupon (GRPN) -2.6% -2.8% -2% -19.4% 5.2% -47.5%
US Online Retail 1.4% 6.2% 2.7% 2.3% 132.1% 219.8%
US Market 1.4% 3.8% 3.5% 4.9% 44.8% 40.1%
1 Year Return vs Industry and Market
  • GRPN underperformed the Online Retail industry which returned 2.3% over the past year.
  • GRPN underperformed the Market in United States of America which returned 4.9% over the past year.
Price Volatility
GRPN
Industry
5yr Volatility vs Market

GRPN Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Groupon to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Groupon.

NasdaqGS:GRPN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:GRPN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Online Retail Unlevered Beta Simply Wall St/ S&P Global 1.67
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.67 (1 + (1- 21%) (19.06%))
1.617
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.62
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.617 * 5.96%)
12.37%

Discounted Cash Flow Calculation for NasdaqGS:GRPN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Groupon is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:GRPN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.37%)
2019 165.74 Analyst x5 147.50
2020 212.50 Analyst x4 168.29
2021 233.99 Analyst x2 164.91
2022 259.22 Analyst x1 162.58
2023 269.92 Analyst x1 150.65
2024 279.77 Est @ 3.65% 138.97
2025 289.21 Est @ 3.37% 127.84
2026 298.41 Est @ 3.18% 117.39
2027 307.50 Est @ 3.05% 107.65
2028 316.57 Est @ 2.95% 98.63
Present value of next 10 years cash flows $1,384.40
NasdaqGS:GRPN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $316.57 × (1 + 2.73%) ÷ (12.37% – 2.73%)
$3,373.76
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,373.76 ÷ (1 + 12.37%)10
$1,051.06
NasdaqGS:GRPN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,384.40 + $1,051.06
$2,435.46
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,435.46 / 568.20
$4.29
NasdaqGS:GRPN Discount to Share Price
Calculation Result
Value per share (USD) From above. $4.29
Current discount Discount to share price of $3.41
= -1 x ($3.41 - $4.29) / $4.29
20.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Groupon is available for.
Intrinsic value
20%
Share price is $3.41 vs Future cash flow value of $4.29
Current Discount Checks
For Groupon to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Groupon's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Groupon's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:GRPN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-0.09
NasdaqGS:GRPN Share Price ** NasdaqGS (2019-06-25) in USD $3.41
United States of America Online Retail Industry PE Ratio Median Figure of 29 Publicly-Listed Online Retail Companies 34.05x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Groupon.

NasdaqGS:GRPN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:GRPN Share Price ÷ EPS (both in USD)

= 3.41 ÷ -0.09

-39.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Groupon is loss making, we can't compare its value to the US Online Retail industry average.
  • Groupon is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Groupon's expected growth come at a high price?
Raw Data
NasdaqGS:GRPN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -39.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
34.3%per year
United States of America Online Retail Industry PEG Ratio Median Figure of 22 Publicly-Listed Online Retail Companies 2.14x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Groupon, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Groupon's assets?
Raw Data
NasdaqGS:GRPN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $0.60
NasdaqGS:GRPN Share Price * NasdaqGS (2019-06-25) in USD $3.41
United States of America Online Retail Industry PB Ratio Median Figure of 66 Publicly-Listed Online Retail Companies 2.92x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.79x
NasdaqGS:GRPN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:GRPN Share Price ÷ Book Value per Share (both in USD)

= 3.41 ÷ 0.60

5.68x

* Primary Listing of Groupon.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Groupon is overvalued based on assets compared to the US Online Retail industry average.
X
Value checks
We assess Groupon's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Online Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Online Retail industry average (and greater than 0)? (1 check)
  5. Groupon has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GRPN Future Performance

 How is Groupon expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
34.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Groupon expected to grow at an attractive rate?
  • Groupon's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Groupon's earnings growth is expected to exceed the United States of America market average.
  • Groupon's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:GRPN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:GRPN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 34.3%
NasdaqGS:GRPN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 3.2%
United States of America Online Retail Industry Earnings Growth Rate Market Cap Weighted Average 26.3%
United States of America Online Retail Industry Revenue Growth Rate Market Cap Weighted Average 16.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:GRPN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:GRPN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,835 324 90 4
2022-12-31 2,729 316 76 4
2021-12-31 2,567 300 86 7
2020-12-31 2,489 249 69 13
2019-12-31 2,467 184 18 12
NasdaqGS:GRPN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,589 163 -49
2018-12-31 2,637 191 -11
2018-09-30 2,710 133 -9
2018-06-30 2,752 212 -53
2018-03-31 2,797 148 34
2017-12-31 2,844 128 16
2017-09-30 2,876 151 -74
2017-06-30 2,928 88 -111
2017-03-31 2,989 55 -155
2016-12-31 3,014 118 -177
2016-09-30 3,026 78 -172
2016-06-30 3,053 92 -163

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Groupon's earnings are expected to grow significantly at over 20% yearly.
  • Groupon's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:GRPN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Groupon Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:GRPN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.15 0.16 0.14 3.00
2022-12-31 0.12 0.14 0.11 3.00
2021-12-31 0.13 0.21 0.08 4.00
2020-12-31 0.11 0.19 0.03 9.00
2019-12-31 0.02 0.07 -0.02 9.00
NasdaqGS:GRPN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -0.09
2018-12-31 -0.02
2018-09-30 -0.02
2018-06-30 -0.09
2018-03-31 0.06
2017-12-31 0.03
2017-09-30 -0.13
2017-06-30 -0.20
2017-03-31 -0.27
2016-12-31 -0.31
2016-09-30 -0.29
2016-06-30 -0.27

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Groupon is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Groupon's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Groupon has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GRPN Past Performance

  How has Groupon performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Groupon's growth in the last year to its industry (Online Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Groupon does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Groupon's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Groupon's 1-year growth to the US Online Retail industry average as it is not currently profitable.
Earnings and Revenue History
Groupon's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Groupon Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:GRPN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,588.62 -48.84 1,213.82
2018-12-31 2,636.75 -11.08 1,231.54
2018-09-30 2,709.99 -9.36 1,264.81
2018-06-30 2,751.57 -53.06 1,287.91
2018-03-31 2,796.79 34.03 1,306.10
2017-12-31 2,843.88 16.01 1,302.99
2017-09-30 2,875.58 -73.77 1,294.96
2017-06-30 2,927.67 -111.32 1,297.84
2017-03-31 2,988.81 -155.31 1,315.07
2016-12-31 3,013.62 -177.47 1,347.05
2016-09-30 3,025.92 -171.55 1,389.19
2016-06-30 3,052.96 -162.53 1,413.70
2016-03-31 3,067.60 -128.69 1,411.33
2015-12-31 2,954.82 -86.26 1,297.98
2015-09-30 3,085.57 -42.30 1,377.23
2015-06-30 3,086.25 -29.45 1,387.94
2015-03-31 3,064.06 -24.00 1,405.63
2014-12-31 3,042.12 -27.64 1,433.34
2014-09-30 2,927.34 -132.86 1,450.65
2014-06-30 2,808.13 -120.68 1,443.46
2014-03-31 2,700.67 -115.61 1,438.12
2013-12-31 2,573.66 -95.39 1,425.79
2013-09-30 2,443.51 -95.24 1,431.74
2013-06-30 2,417.00 -95.63 1,443.30
2013-03-31 2,376.59 -59.67 1,473.50
2012-12-31 2,334.47 -67.38 1,515.93
2012-09-30 2,188.33 -51.67 1,558.01
2012-06-30 2,049.94 -102.92 1,566.26

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Groupon has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Groupon has efficiently used its assets last year compared to the US Online Retail industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Groupon improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Groupon's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Online Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Groupon has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GRPN Health

 How is Groupon's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Groupon's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Groupon's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Groupon Company Filings, last reported 2 months ago.

NasdaqGS:GRPN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 342.40 204.84 645.61
2018-12-31 382.61 201.67 841.02
2018-09-30 331.64 198.58 572.36
2018-06-30 271.14 195.56 671.41
2018-03-31 350.37 192.62 725.91
2017-12-31 251.85 189.75 880.13
2017-09-30 188.07 186.96 638.66
2017-06-30 185.98 184.24 618.55
2017-03-31 211.39 181.58 690.98
2016-12-31 265.06 179.00 862.98
2016-09-30 332.16 176.47 689.75
2016-06-30 369.31 174.02 780.13
2016-03-31 385.67 0.00 688.51
2015-12-31 470.59 0.00 853.36
2015-09-30 600.95 195.00 963.56
2015-06-30 792.75 0.00 1,110.15
2015-03-31 769.01 0.00 975.50
2014-12-31 764.94 0.00 1,016.63
2014-09-30 727.96 0.00 855.17
2014-06-30 730.94 0.00 868.09
2014-03-31 823.53 0.00 1,038.82
2013-12-31 711.68 0.00 1,240.47
2013-09-30 808.80 0.00 1,139.86
2013-06-30 790.43 0.00 1,182.01
2013-03-31 763.97 0.00 1,165.65
2012-12-31 742.10 0.00 1,209.29
2012-09-30 804.39 0.00 1,201.01
2012-06-30 782.31 0.00 1,189.75
  • Groupon's level of debt (66.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 66.6% today).
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.

  • Whilst loss making Groupon has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Groupon has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -41.8% per year.
X
Financial health checks
We assess Groupon's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Groupon has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GRPN Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Groupon dividends. Estimated to be 0% next year.
If you bought $2,000 of Groupon shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:GRPN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
Global Online Retail Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:GRPN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 3.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00
NasdaqGS:GRPN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2012-02-08 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Groupon's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess Groupon's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Groupon afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Groupon has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GRPN Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rich Williams
COMPENSATION $10,093,972
AGE 43
TENURE AS CEO 3.6 years
CEO Bio

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 November 3, 2015 and also served as its President of North America since October 2014. Mr. Williams served as Senior Vice President of Global Marketing at Groupon, Inc. since June 2011. He has been a Director of Groupon, Inc. since November 13, 2015. He joined Groupon Inc. in June 2011 as Senior Vice President of Marketing. Prior to joining Groupon, Mr. Williams served in a variety of marketing leadership roles at Amazon.com, Inc. from January 2008 to June 2011, most recently as the Director of Paid Traffic leading global advertising. Mr. Williams ran Worldwide Marketing and Advertising at Amazon and spent nearly seven years developing marketing programs and technologies in a variety of leadership roles at Experian. He has been a Director of Kontoor Brands, Inc. since June 19, 2019. He received his Bachelor of Arts in Political Science from University of Southern California. Mr. Williams has substantial experience gained from leadership positions in sales, marketing, and operations at Groupon and several publicly traded companies in the e-commerce and information services industries.

CEO Compensation
  • Rich's compensation has increased whilst company is loss making.
  • Rich's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Groupon management team in years:

3.4
Average Tenure
46.5
Average Age
  • The tenure for the Groupon management team is about average.
Management Team

Eric Lefkofsky

TITLE
Chairman of the Board
COMPENSATION
$300K
AGE
48

Rich Williams

TITLE
CEO & Director
COMPENSATION
$10M
AGE
43
TENURE
3.6 yrs

Mike Randolfi

TITLE
Chief Financial Officer
COMPENSATION
$4M
AGE
45
TENURE
3.2 yrs

Steve Krenzer

TITLE
Chief Operating Officer
COMPENSATION
$2M
AGE
59
TENURE
1.6 yrs

Melissa Thomas

TITLE
Senior VP
COMPENSATION
$812K
AGE
38
TENURE
0.6 yrs

Dane Drobny

TITLE
General Counsel & Corporate Secretary
COMPENSATION
$2M
AGE
50
TENURE
4.9 yrs

Heather Davis

TITLE
VP & Head of Investor Relations

Craig Rowley

TITLE
Chief Marketing Officer
TENURE
0.3 yrs

Alison Allgor

TITLE
Senior Vice President of Human Resources
TENURE
3.8 yrs

Brian McCallister

TITLE
Chief Technology Officer of Platform
TENURE
5.7 yrs
Board of Directors Tenure

Average tenure and age of the Groupon board of directors in years:

3.6
Average Tenure
56
Average Age
  • The tenure for the Groupon board of directors is about average.
Board of Directors

Eric Lefkofsky

TITLE
Chairman of the Board
COMPENSATION
$300K
AGE
48
TENURE
3.6 yrs

Rich Williams

TITLE
CEO & Director
COMPENSATION
$10M
AGE
43
TENURE
3.6 yrs

Peter Barris

TITLE
Director
COMPENSATION
$270K
AGE
66
TENURE
11.4 yrs

Ted Leonsis

TITLE
Lead Independent Director
COMPENSATION
$265K
AGE
62
TENURE
3.6 yrs

Bob Bass

TITLE
Director
COMPENSATION
$280K
AGE
69
TENURE
7 yrs

Ann Ziegler

TITLE
Director
COMPENSATION
$250K
AGE
60
TENURE
5 yrs

Mike Angelakis

TITLE
Director
COMPENSATION
$250K
AGE
53
TENURE
3.2 yrs

Joey Levin

TITLE
Director
COMPENSATION
$250K
AGE
39
TENURE
2.3 yrs

Deb Wahl

TITLE
Director
COMPENSATION
$325K
AGE
56
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Groupon's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Groupon has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GRPN News

Simply Wall St News

Groupon, Inc. (NASDAQ:GRPN): What Does Its Beta Value Mean For Your Portfolio?

(NASDAQ:GRPN), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one. … Check out our latest analysis for Groupon What GRPN's beta value tells investors Given that it has a beta of 1.44, we can surmise that the Groupon share price has been fairly sensitive to market volatility (over the last 5 years).

Simply Wall St -

A Look At The Intrinsic Value Of Groupon, Inc. (NASDAQ:GRPN)

We assume companies with shrinking free cash flow are will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $165.74 $212.50 $233.99 $259.22 $269.92 $279.77 $289.21 $298.41 $307.50 $316.57 Growth Rate Estimate Source Analyst x5 Analyst x4 Analyst x2 Analyst x1 Analyst x1 Est @ 3.65% Est @ 3.37% Est @ 3.18% Est @ 3.05% Est @ 2.95% Present Value ($, Millions) Discounted @ 12.31% $147.57 $168.46 $165.16 $162.92 $151.04 $139.39 $128.30 $117.87 $108.15 $99.13 Present Value of 10-year Cash Flow (PVCF)= $1.39b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$317m × (1 + 2.7%) ÷ (12.3% – 2.7%) = US$3.4b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$3.4b ÷ ( 1 + 12.3%)10 = $1.06b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $2.45b.

Simply Wall St -

Is There An Opportunity With Groupon, Inc.'s (NASDAQ:GRPN) 24% Undervaluation?

Today we will run through one way of estimating the intrinsic value of Groupon, Inc. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model? … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows

Simply Wall St -

What Kind Of Investor Owns Most Of Groupon, Inc. (NASDAQ:GRPN)?

A look at the shareholders of Groupon, Inc. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'.

Simply Wall St -

Did Changing Sentiment Drive Groupon's (NASDAQ:GRPN) Share Price Down A Worrying 57%?

Because Groupon is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … Shareholders of unprofitable companies usually expect strong revenue growth. … Ultimately, it may be worth watching - should revenue pick up, the share price might follow.

Simply Wall St -

How Does Groupon, Inc. (NASDAQ:GRPN) Affect Your Portfolio Volatility?

(NASDAQ:GRPN), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Are Groupon, Inc.'s (NASDAQ:GRPN) Interest Costs Too High?

Mid-caps stocks, like Groupon, Inc. … GRPN’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis.

Simply Wall St -

Estimating The Intrinsic Value Of Groupon, Inc. (NASDAQ:GRPN)

I am going to run you through how I calculated the intrinsic value of Groupon, Inc. … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Groupon, Inc. (NASDAQ:GRPN): Time For A Financial Health Check

(NASDAQ:GRPN) with its market cap of US$1.7b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Online Retail businesses operating in the environment facing headwinds from current disruption,.

Simply Wall St -

Should You Worry About Groupon Inc's (NASDAQ:GRPN) CEO Pay?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Rich Williams's Compensation Compare With Similar Sized Companies. … Our data indicates that Groupon Inc is worth US$1.8b, and total annual CEO compensation is US$7.8m.

Simply Wall St -

GRPN Company Info

Description

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, beauty and spa, health and fitness, food and drink, home and garden, and automotive; and deals on various product lines, such as electronics, sporting goods, jewelry, toys, household items, and apparel, as well as discounted and market rates for hotel, airfare, and package deals. It offers its deal offerings to customers through Websites; search engines; mobile applications and mobile Web browsers, which enable consumers to browse, purchase, manage, and redeem deals on 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. The company was founded in 2008 and is headquartered in Chicago, Illinois.

Details
Name: Groupon, Inc.
GRPN
Exchange: NasdaqGS
Founded: 2008
$1,937,562,000
568,200,000
Website: http://www.groupon.com
Address: Groupon, Inc.
600 West Chicago Avenue,
Suite 400,
Chicago,
Illinois, 60654,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS GRPN Common Stock Nasdaq Global Select US USD 04. Nov 2011
DB G5N Common Stock Deutsche Boerse AG DE EUR 04. Nov 2011
LSE 0R1H Common Stock London Stock Exchange GB USD 04. Nov 2011
WBAG GRPN Common Stock Wiener Boerse AG AT EUR 04. Nov 2011
BMV GRPN * Common Stock Bolsa Mexicana de Valores MX MXN 04. Nov 2011
Number of employees
Current staff
Staff numbers
6,576
Groupon employees.
Industry
Internet and Direct Marketing Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 00:46
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/05/22
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.