Groupon Inc

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GRPN : NASDAQ : Technology
$4.39 up 0.05 | 1.15%
Today's Range: 4.28 - 4.4
Avg. Daily Volume: 6736000.0
09/20/17 - 4:00 PM ET

Financial Analysis

GROUPON INC's gross profit margin for the second quarter of its fiscal year 2017 has increased 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 0.74 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 49.75% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)662.62723.76
EBITDA ($mil)31.91.38
EBIT ($mil)-2.78-32.54
Net Income ($mil)-9.33-54.9

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)618.55780.13
Total Assets ($mil)1427.441751.44
Total Debt ($mil)233.55227.34
Equity ($mil)185.19368.56

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin54.7448.26
EBITDA Margin4.810.19
Operating Margin-0.42-4.5
Sales Turnover2.11.74
Return on Assets-8.7-10.17
Return on Equity-66.64-44.1
Debt Q2 FY17 Q2 FY16
Current Ratio0.830.96
Interest Expense4.955.23
Interest Coverage-0.56-6.22

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)557.36575.18
Div / share0.00.0
Book value / share0.330.64
Institutional Own % n/a n/a
Avg Daily Volume7387123.07882824.0


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 13.03 indicates a significant premium versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 20.13. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GRPN NM Peers 198.67   GRPN 29.04 Peers 25.47

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
GRPN 24.06 Peers 183.43   GRPN NA Peers 1.43

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GRPN 13.03 Peers 20.13   GRPN 22.23 Peers 198.88

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GRPN 0.81 Peers 4.24   GRPN -2.01 Peers 42.99

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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