Groupon Stock Analysis (NASDAQ:GRPN)

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$4.42 $0.1 (2.21%) GRPN stock closing price Feb 23, 2017 (Closing)
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Groupon
Updated on : Feb 23, 2017
previous close
GRPN 4.4 (0%)
S&P 500 2363.8 (0%)
Closing Price On: Feb 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Commerce
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
14.1%
Operating Profit
Operating Margin:
-3.5%
Sector Average:
5.5%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
179M
Debt/Equity Ratio:
 0.68
Compared to the industry
Cash Flow
Operating cash flow:
$288.7M
Net Income:
-$52.6M
PROS      CONS
Long Term Growth
FCF Margin
Operating Margins
Net Margins
High Debt Burden
ROE
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
GRPN PS :
0.8
Industry PS :
0.8
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Equity:
-53.4%
Free Cash Flow Margin:
28.8%
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Groupon Analysis Video

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Groupon stock analysis must look at the comprehensive business model of the firm. The firm which was once marked as the fastest growing company has shown few positive signs for investors recently. Groupon valuation peaked at over $13 billion after it was listed for $20 However since then the stock has lost over two-third value as can be seen from Groupon stock price history. The loss of faith by the investors has been due to consensus that the current business model cannot be sustained for long.

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Groupon Inc Stock Rating (1.5/5)

Should you buy GRPN stock?

  • Long term revenue growth has been strong with a 5 year compounded annual growth of 14.1%.
  • Groupon has a healthy FCF (Free Cash Flow) margin of 28.8%.

Should you sell GRPN stock?

  • Groupon registered a negative operating margin of -3.5% (average) over the Trailing Twelve Months (TTM).
  • Groupon posted an average Net loss of -6.2% in the last twelve months.
  • Groupon has a debt/equity ratio of  0.68, which is worse than the average in the Retail-Wholesale sector.
  • PE ratio is meaningless for GRPN stock as the company has losses.
  • A negative ROE of -53.4% indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and Groupon stock

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Stock Market Picks on Groupon stock analysis ($4.99)
bullish
PennyStocksDeal's Results: $GRPN opened LONG on 8/01 at $4.65 and closed today's at $5.00 +7.53% http://www.pennystocksdeal.com/Results.h...
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user profile picture
vicky@amigobulls on Groupon stock analysis ($7.42)
bearish
Groupon is transitioning into a diversified e-commerce business. CEO Lefkofsky seems to be making all the right moves. Yet, it is a risk bet currently, albeit a cheap one. The coming quarters will give a clearer view of GRPN as an investment.

http://amigobulls.com/articles/groupon-p...
1 reply

Groupon started by giving deals of the day to its customers. This was a great way to get a bargain for the end customers and for the business owners to give bulk discount and get additional advertising. However it led to several issues like the business owners not being able to cater to excess demand and lower quality of products. Groupon performance in the market has also been hit by the fact that it has still not shown profitability to the investors. Many other similar business models have fallen in the dust and none of them have shown a sustainable working model. Groupon revenue and Groupon assets have not increased significantly either.