Is Groupon Stock a Good Investment?

Groupon Investment Advice

GRPN

To provide specific investment advice or recommendations on Groupon stock, we recommend investors consider the following general factors when evaluating Groupon. This will help you to make an informed decision on whether to include Groupon in one of your diversified portfolios:

Examine Groupon's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Groupon's leadership team and their track record. Good management can help Groupon navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Broadline Retail space and any emerging trends that could impact Groupon's business and its evolving consumer preferences.
Compare Groupon's performance and market position to its competitors. Analyze how Groupon is positioned in terms of product offerings, innovation, and market share.
Check if Groupon pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Groupon's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Groupon stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Groupon is a good investment.

Sell

Buy

Strong Buy

We provide advice to complement the regular expert consensus on Groupon. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Groupon is not overpriced, please check out all Groupon fundamentals, including its price to sales, book value per share, retained earnings, as well as the relationship between the cash and equivalents and target price . Given that Groupon has a price to earning of 3.95 X, we strongly advise you to confirm Groupon market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Market Performance	Very Weak	Details
Volatility	Slightly risky	Details
Hype Condition	Under hyped	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Above Average	Details
Economic Sensitivity	Responds to the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Frail	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Possible Manipulator	Details

Examine Groupon Stock

Researching Groupon's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 14.0% of the company shares are held by company insiders. The company last dividend was issued on the 11th of June 2020. Groupon had 1:20 split on the 11th of June 2020.

To determine if Groupon is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Groupon's research are outlined below:

	Groupon generated a negative expected return over the last 90 days
	Groupon has high historical volatility and very poor performance
	Groupon has high likelihood to experience some financial distress in the next 2 years
	Groupon currently holds 278.75 M in liabilities with Debt to Equity (D/E) ratio of 3.99, implying the company greatly relies on financing operations through barrowing. Groupon has a current ratio of 0.75, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Groupon's use of debt, we should always consider it together with its cash and equity.
	The entity reported the previous year's revenue of 514.91 M. Net Loss for the year was (55.41 M) with profit before overhead, payroll, taxes, and interest of 522.82 M.
	Groupon currently holds about 308 M in cash with (77.98 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 10.12, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
	Groupon has a frail financial position based on the latest SEC disclosures
	Over 75.0% of Groupon shares are owned by institutional investors
	Latest headline from news.google.com: Evaluating Groupon Stock Pre-Q3 Earnings Buy, Hold, or Avoid - MSN

Groupon Quarterly Cash And Short Term Investments

159.71 Million

Groupon uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Groupon. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Groupon's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	21st of March 2024 Upcoming Quarterly Report	View
	8th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	21st of March 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Groupon's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Groupon's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2014-08-05	2014-06-30	0.17	0.2	0.03	17
2024-07-30	2024-06-30	0.02	-0.02	-0.04	200
2023-08-09	2023-06-30	-0.18	-0.1	0.08	44
2013-05-08	2013-03-31	0.51	0.6	0.09	17
2022-08-08	2022-06-30	-0.44	-0.34	0.1	22
2016-10-26	2016-09-30	-0.3	-0.2	0.1	33
2015-08-07	2015-06-30	0.53	0.4	-0.13	24
2022-11-07	2022-09-30	-0.53	-0.68	-0.15	28

Know Groupon's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Groupon is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Groupon backward and forwards among themselves. Groupon's institutional investor refers to the entity that pools money to purchase Groupon's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Morgan Stanley - Brokerage Accounts	2024-06-30	527.2 K
Two Sigma Investments Llc	2024-09-30	448.3 K
Caption Management, Llc	2024-09-30	416.9 K
Two Sigma Advisers, Llc	2024-06-30	341.9 K
Susquehanna International Group, Llp	2024-06-30	250.7 K
Scoggin Llc	2024-06-30	250 K
Northern Trust Corp	2024-09-30	225.2 K
Prentice Capital Management, Lp	2024-09-30	199.8 K
Charles Schwab Investment Management Inc	2024-09-30	199 K
Pale Fire Capital Se	2024-06-30	10.2 M
Divisadero Street Capital Management, Lp	2024-09-30	2.6 M

Note, although Groupon's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Groupon's market capitalization trends

The company currently falls under 'Small-Cap' category with a current market capitalization of 370.64 M.

Market Cap

438.27 Million

Groupon's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.15)	(0.15)
Return On Capital Employed	(0.09)	(0.09)
Return On Assets	(0.10)	(0.10)
Return On Equity	1.36	1.43

The company has Profit Margin (PM) of 0.04 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of (0.04) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.04.

Determining Groupon's profitability involves analyzing its financial statements and using various financial metrics to determine if Groupon is a good buy. For example, gross profit margin measures Groupon's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Groupon's profitability and make more informed investment decisions.

Evaluate Groupon's management efficiency

Groupon has return on total asset (ROA) of 0.0197 % which means that it generated a profit of $0.0197 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (4.2656) %, meaning that it created substantial loss on money invested by shareholders. Groupon's management efficiency ratios could be used to measure how well Groupon manages its routine affairs as well as how well it operates its assets and liabilities. As of the 25th of November 2024, Return On Equity is likely to grow to 1.43, while Return On Tangible Assets are likely to drop (0.15). At this time, Groupon's Asset Turnover is very stable compared to the past year.

	Last Reported	Projected for Next Year
Book Value Per Share	(1.29)	(1.23)
Tangible Book Value Per Share	(7.37)	(7.01)
Enterprise Value Over EBITDA	22.90	24.04
Price Book Value Ratio	(9.87)	(9.38)
Enterprise Value Multiple	22.90	24.04
Price Fair Value	(9.87)	(9.38)
Enterprise Value	619.1 M	588.1 M

Effective leadership at Groupon drives its competitive edge in the market. Our analysis focuses on how this translates to financial performance and stock value.

Beta

1.767

Basic technical analysis of Groupon Stock

As of the 25th of November, Groupon retains the Market Risk Adjusted Performance of (0.26), risk adjusted performance of (0.04), and Standard Deviation of 5.32. Groupon technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices.

Groupon's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Groupon insiders, such as employees or executives, is commonly permitted as long as it does not rely on Groupon's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Groupon insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Dusan Senkypl over three months ago Acquisition by Dusan Senkypl of 15115 shares of Groupon at 9.2025 subject to Rule 16b-3
		Bass Robert J over three months ago Disposition of 4583 shares by Bass Robert J of Groupon at 11.35 subject to Rule 16b-3
		Kedar Deshpande over three months ago Disposition of 61549 shares by Kedar Deshpande of Groupon subject to Rule 16b-3
		Majic Xavier over six months ago Disposition of 111141 shares by Majic Xavier of Groupon at 12.2281 subject to Rule 16b-3
		Kyle Netzly over six months ago Disposition of 23 shares by Kyle Netzly of Groupon subject to Rule 16b-3
		Jiri Ponrt over six months ago Disposition of 183333 shares by Jiri Ponrt of Groupon subject to Rule 16b-3
		Ann Ziegler over six months ago Acquisition by Ann Ziegler of 5595 shares of Groupon subject to Rule 16b-3
		Rich Williams over six months ago Exercise or conversion by Rich Williams of 140427 shares of Groupon subject to Rule 16b-3

Groupon's Outstanding Corporate Bonds

Groupon issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Groupon uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Groupon bonds can be classified according to their maturity, which is the date when Groupon has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	HSBC Holdings PLC Corp Bond US404280DR76	View
	MGM Resorts International Corp Bond US552953CD18	View
	AerCap Global Aviation Corp Bond US00773HAA59	View

View All Groupon Corporate Bonds

Understand Groupon's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Groupon's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0.04)
	Market Risk Adjusted Performance	(0.26)
	Mean Deviation	3.64
	Coefficient Of Variation	(1,451)
	Standard Deviation	5.32
	Variance	28.35
	Information Ratio	(0.09)
	Jensen Alpha	(0.54)
	Total Risk Alpha	(1.22)
	Treynor Ratio	(0.27)
	Maximum Drawdown	37.96
	Value At Risk	(7.21)
	Potential Upside	7.39
	Skewness	(1.71)
	Kurtosis	8.74

	Risk Adjusted Performance	(0.04)
	Market Risk Adjusted Performance	(0.26)
	Mean Deviation	3.64
	Coefficient Of Variation	(1,451)
	Standard Deviation	5.32
	Variance	28.35
	Information Ratio	(0.09)
	Jensen Alpha	(0.54)
	Total Risk Alpha	(1.22)
	Treynor Ratio	(0.27)
	Maximum Drawdown	37.96
	Value At Risk	(7.21)
	Potential Upside	7.39
	Skewness	(1.71)
	Kurtosis	8.74

Consider Groupon's intraday indicators

Groupon intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Groupon stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.0518
	Daily Balance Of Power	0.24
	Rate Of Daily Change	1.01
	Day Median Price	9.41
	Day Typical Price	9.38
	Market Facilitation Index	0.5
	Price Action Indicator	(0.03)
	Period Momentum Indicator	0.12
	Relative Strength Index	56.69

Groupon Corporate Filings

8K	19th of November 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
13A	14th of November 2024 An amended filing to the original Schedule 13G	View Verify
F3	1st of November 2024 An amendment to the original Schedule 13D filing	View Verify
F4	9th of August 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify

Groupon time-series forecasting models is one of many Groupon's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Groupon's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Groupon Stock media impact

Far too much social signal, news, headlines, and media speculation about Groupon that are available to investors today. That information is available publicly through Groupon media outlets and privately through word of mouth or via Groupon internal channels. However, regardless of the origin, that massive amount of Groupon data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Groupon news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Groupon relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Groupon's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Groupon alpha.

Groupon Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Groupon can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Groupon Corporate Management

Dane Drobny	Sr. VP, General Counsel and Corporate Secretary	Profile
Kristen Barbor	Chief Officer	Profile
Jennifer Beugelmans	Chief Officer	Profile
Vojtech Rysanek	Chief Officer	Profile
Kedar Deshpande	CEO Director	Profile
Rana Kashyap	Senior Relations	Profile

When determining whether Groupon offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Groupon's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Groupon Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Groupon Stock: