Groupon Inc

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GRPN : NASDAQ : Technology
$3.27 -0.06 | -1.8%
Today's Range: 3.26 - 3.37
Avg. Daily Volume: 8711500.0
05/25/17 - 4:00 PM ET

Financial Analysis


GROUPON INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. GROUPON INC has weak liquidity. Currently, the Quick Ratio is 0.78 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 45.31% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)673.63698.44
EBITDA ($mil)25.134.24
EBIT ($mil)-8.94-30.17
Net Income ($mil)-24.41-49.12


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)690.98688.51
Total Assets ($mil)1483.841618.68
Total Debt ($mil)223.6752.18
Equity ($mil)210.17384.32


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin51.050.76
EBITDA Margin3.730.6
Operating Margin-1.33-4.32
Sales Turnover2.081.9
Return on Assets-11.44-0.87
Return on Equity-81.06-33.48
Debt Q1 FY17 Q1 FY16
Current Ratio0.850.81
Debt/Capital0.520.12
Interest Expense5.320.84
Interest Coverage-1.68-35.83


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)562.36575.88
Div / share0.00.0
EPS-0.04-0.08
Book value / share0.370.67
Institutional Own % n/a n/a
Avg Daily Volume9392081.01.3216635E7

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 8.86 indicates a significant premium versus the S&P 500 average of 3.00 and a significant discount versus the industry average of 17.81. 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 180.33   GRPN 34.35 Peers 26.35

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 significant 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 18.39 Peers 108.45   GRPN NA Peers 3.56

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

GRPN is trading at a significant discount to its peers.

 

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 8.86 Peers 17.81   GRPN -42.85 Peers 87.33

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 0.60 Peers 4.01   GRPN 0.56 Peers 24.87

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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