Green Dot Corporation
Green Dot Corporation Fundamental Analysis
Green Dot Corporation (GDOT) shows moderate financial fundamentals with a PE ratio of -14.19, profit margin of -2.33%, and ROE of -5.14%. The company generates $2.0B in annual revenue with strong year-over-year growth of 14.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GDOT's fundamental strength across five key dimensions:
Efficiency Score
WeakGDOT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGDOT trades at attractive valuation levels.
Growth Score
ModerateGDOT shows steady but slowing expansion.
Financial Health Score
ModerateGDOT shows balanced financial health with some risks.
Profitability Score
WeakGDOT struggles to sustain strong margins.
Key Financial Metrics
Is GDOT Expensive or Cheap?
P/E Ratio
GDOT trades at -14.19 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GDOT's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values Green Dot Corporation at 0.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.57 times EBITDA. This signals the market has high growth expectations.
How Well Does GDOT Make Money?
Net Profit Margin
For every $100 in sales, Green Dot Corporation keeps $-2.33 as profit after all expenses.
Operating Margin
Core operations generate 2.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-5.14 in profit for every $100 of shareholder equity.
ROA
Green Dot Corporation generates $-0.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Green Dot Corporation generates limited operating cash flow of $178.49M, signaling weaker underlying cash strength.
Free Cash Flow
Green Dot Corporation produces free cash flow of $97.46M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.75 in free cash annually.
FCF Yield
GDOT converts 14.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-14.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.05
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How GDOT Stacks Against Its Sector Peers
| Metric | GDOT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -14.19 | 18.86 | Better (Cheaper) |
| ROE | -5.14% | 847.00% | Weak |
| Net Margin | -2.33% | 4202.00% | Weak |
| Debt/Equity | 0.07 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.54 | 667.17 | Weak Liquidity |
| ROA | -0.81% | -21543.00% (disorted) | Weak |
GDOT outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Green Dot Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.63%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-126.06%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-58.21%
Industry Style: Value, Dividend, Cyclical
Declining