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Market Cap

US$5.5b

Last Updated

2021/05/17 23:52 UTC

Data Sources

Company Financials +

Executive Summary

Grubhub Inc., together with its subsidiaries, provides an online and mobile platform for restaurant pick-up and delivery orders in the United States. More Details

Rewards

Trading at 44.4% below our estimate of its fair value

Earnings are forecast to grow 71.24% per year

Risk Analysis

No risks detected for GRUB from our risk checks.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Grubhub's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GRUB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: GRUB's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-11.3%

GRUB

-2.4%

US Online Retail

-0.6%

US Market


1 Year Return

-0.3%

GRUB

26.7%

US Online Retail

46.0%

US Market

Return vs Industry: GRUB underperformed the US Online Retail industry which returned 26.7% over the past year.

Return vs Market: GRUB underperformed the US Market which returned 46% over the past year.


Shareholder returns

GRUBIndustryMarket
7 Day-11.3%-2.4%-0.6%
30 Day-20.3%-8.2%-1.8%
90 Day-19.8%-14.4%0.2%
1 Year-0.3%-0.3%26.8%26.7%48.4%46.0%
3 Year-44.5%-44.5%64.4%64.3%60.5%50.4%
5 Year144.8%144.8%264.4%264.0%125.9%100.9%

Long-Term Price Volatility Vs. Market

How volatile is Grubhub's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Grubhub undervalued compared to its fair value and its price relative to the market?

44.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GRUB ($57.5) is trading below our estimate of fair value ($103.4)

Significantly Below Fair Value: GRUB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GRUB is unprofitable, so we can't compare its PE Ratio to the US Online Retail industry average.

PE vs Market: GRUB 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 GRUB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GRUB is good value based on its PB Ratio (3.9x) compared to the US Online Retail industry average (4.5x).


Future Growth

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

71.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRUB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: GRUB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GRUB's is expected to become profitable in the next 3 years.

Revenue vs Market: GRUB's revenue (15% per year) is forecast to grow faster than the US market (9% per year).

High Growth Revenue: GRUB's revenue (15% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GRUB's Return on Equity is forecast to be low in 3 years time (3.8%).


Past Performance

How has Grubhub performed over the past 5 years?

-54.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRUB is currently unprofitable.

Growing Profit Margin: GRUB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GRUB is unprofitable, and losses have increased over the past 5 years at a rate of 54.5% per year.

Accelerating Growth: Unable to compare GRUB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GRUB is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (102.6%).


Return on Equity

High ROE: GRUB has a negative Return on Equity (-14.56%), as it is currently unprofitable.


Financial Health

How is Grubhub's financial position?


Financial Position Analysis

Short Term Liabilities: GRUB's short term assets ($552.0M) exceed its short term liabilities ($392.0M).

Long Term Liabilities: GRUB's short term assets ($552.0M) do not cover its long term liabilities ($611.4M).


Debt to Equity History and Analysis

Debt Level: GRUB's debt to equity ratio (36.4%) is considered satisfactory.

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

Debt Coverage: GRUB's debt is well covered by operating cash flow (24.6%).

Interest Coverage: Insufficient data to determine if GRUB's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Grubhub current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GRUB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GRUB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GRUB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GRUB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GRUB'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?

3.2yrs

Average management tenure


CEO

Matt Maloney (45 yo)

7.75yrs

Tenure

US$8,308,632

Compensation

Mr. Matthew Mayer Maloney, also known as Matt, serves as the Member of Advisory Board at Starting Line. He serves as Independent Director at Marquee Raine Acquisition Corp. since December 14, 2020. Mr. Mal...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD8.31M) is about average for companies of similar size in the US market ($USD6.51M).

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


Leadership Team

Experienced Management: GRUB's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: GRUB's board of directors are considered experienced (5.8 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

Grubhub Inc.'s company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Grubhub Inc.
  • 111 West Washington Street
  • Suite 2100
  • Chicago
  • Illinois
  • 60602
  • United States

Listings


Biography

Grubhub Inc., together with its subsidiaries, provides an online and mobile platform for restaurant pick-up and delivery orders in the United States. The company connects approximately 300,000 local restau...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/17 23:52
End of Day Share Price2021/05/17 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.