Groupon Stock Analysis, Valuation (NASDAQ:GRPN)

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$4.58 $0.13 (2.92%) GRPN stock closing price Mar 21, 2018 (Closing)
Watch Robo Advisor Video of GRPN Stock Analysis
Updated on : Mar 22, 2018
previous close
GRPN 4.6 (0%)
S&P 500 2711.9 (0%)
Closing Price On: Mar 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Commerce
Sector :
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High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
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Groupon Stock Analysis

5690 6 2

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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Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Groupon Inc Stock Rating 2.5/5

Should you buy GRPN stock?

  • The operating cash flow looks good at 5.7 times the net income.
  • The company has a good Free Cash Flow (FCF) margin of 29.2%.

Should you sell GRPN stock?

  • Groupon sales shrank by -6.6% year-over-year in 2017 Q4.
  • Groupon had a poor average operating margin of 1% over the last 4 quarters.
  • Groupon posted a TTM Net margin of 0.5%.
  • With a debt/equity ratio of  0.75, Groupon is highly leveraged in comparison to Retail-Wholesale peers.

Comments on this video and Groupon stock

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.