Groupon Inc

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GRPN : NASDAQ : Technology
$3.51 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1.51435E7
01/19/17 - 4:00 PM ET

Financial Analysis


GROUPON INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. GROUPON INC has weak liquidity. Currently, the Quick Ratio is 0.81 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 44.80% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)720.47713.6
EBITDA ($mil)5.9620.9
EBIT ($mil)-27.3-14.73
Net Income ($mil)-37.98-27.62


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)689.75968.23
Total Assets ($mil)1613.542030.64
Total Debt ($mil)230.15255.6
Equity ($mil)331.24600.14


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin48.2151.09
EBITDA Margin0.822.92
Operating Margin-3.79-2.06
Sales Turnover1.941.52
Return on Assets-11.683.74
Return on Equity-53.71-7.04
Debt Q3 FY16 Q3 FY15
Current Ratio0.921.0
Debt/Capital0.410.3
Interest Expense5.780.78
Interest Coverage-4.72-18.82


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)573.95623.33
Div / share0.00.0
EPS-0.07-0.04
Book value / share0.580.96
Institutional Own % n/a n/a
Avg Daily Volume1.4423356E78654520.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 6.19 indicates a significant premium versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 17.54. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, GROUPON INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GRPN NM Peers 167.36   GRPN 29.34 Peers 24.49

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

GRPN's P/E is negative making this valuation measure meaningless.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

GRPN is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
GRPN 35.70 Peers 1561.42   GRPN NA Peers 1.56

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GRPN 6.19 Peers 17.54   GRPN -416.66 Peers 288.10

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

GRPN is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, GRPN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GRPN 0.66 Peers 3.73   GRPN 1.29 Peers 26.52

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

GRPN is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

GRPN significantly trails its peers on the basis of sales growth

 

 

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