Groupon, Inc.
Groupon, Inc. Fundamental Analysis
Groupon, Inc. (GRPN) shows moderate financial fundamentals with a PE ratio of -4.66, profit margin of -16.76%, and ROE of 61.42%. The company generates $0.5B in annual revenue with weak year-over-year growth of -4.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 112.0/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze GRPN's fundamental strength across five key dimensions:
Efficiency Score
WeakGRPN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGRPN trades at attractive valuation levels.
Growth Score
ModerateGRPN shows steady but slowing expansion.
Financial Health Score
ModerateGRPN shows balanced financial health with some risks.
Profitability Score
ModerateGRPN maintains healthy but balanced margins.
Key Financial Metrics
Is GRPN Expensive or Cheap?
P/E Ratio
GRPN trades at -4.66 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GRPN's PEG of -0.12 indicates potential undervaluation.
Price to Book
The market values Groupon, Inc. at -9.15 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.79 times EBITDA. This signals the market has high growth expectations.
How Well Does GRPN Make Money?
Net Profit Margin
For every $100 in sales, Groupon, Inc. keeps $-16.76 as profit after all expenses.
Operating Margin
Core operations generate 2.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $61.42 in profit for every $100 of shareholder equity.
ROA
Groupon, Inc. generates $-12.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Groupon, Inc. produces operating cash flow of $65.23M, showing steady but balanced cash generation.
Free Cash Flow
Groupon, Inc. generates strong free cash flow of $50.44M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.24 in free cash annually.
FCF Yield
GRPN converts 12.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-4.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
-9.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-8.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
61.42
vs 25 benchmark
ROA
Return on assets percentage
-0.12
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How GRPN Stacks Against Its Sector Peers
| Metric | GRPN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -4.66 | 23.32 | Better (Cheaper) |
| ROE | 6142.31% | 1104.00% | Excellent |
| Net Margin | -16.76% | -55937.00% (disorted) | Weak |
| Debt/Equity | -8.21 | 1.38 | Strong (Low Leverage) |
| Current Ratio | 0.98 | 1.56 | Weak Liquidity |
| ROA | -12.46% | -45352.00% (disorted) | Weak |
GRPN outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROE, but lagging in Net Margin.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Groupon, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-83.92%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
-265.56%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-43.21%
Industry Style: Growth, Technology, Streaming
Declining