Switch to:

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt No Debt
GRPN's Cash to Debt is ranked higher than
80% of the 362 Companies
in the Global Internet Content & Information industry.

( Industry Median: 10000.00 vs. GRPN: No Debt )
GRPN' s 10-Year Cash to Debt Range
Min: No Debt   Max: No Debt
Current: No Debt

Equity to Asset 0.35
GRPN's Equity to Asset is ranked lower than
60% of the 343 Companies
in the Global Internet Content & Information industry.

( Industry Median: 0.66 vs. GRPN: 0.35 )
GRPN' s 10-Year Equity to Asset Range
Min: -2   Max: 0.4
Current: 0.35

-2
0.4
Interest Coverage 260.32
GRPN's Interest Coverage is ranked higher than
60% of the 274 Companies
in the Global Internet Content & Information industry.

( Industry Median: 4266.18 vs. GRPN: 260.32 )
GRPN' s 10-Year Interest Coverage Range
Min: 260.32   Max: 9999.99
Current: 260.32

260.32
9999.99
F-Score: 3
Z-Score: 3.15
M-Score: -2.79
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 4/10

vs
industry
vs
history
Operating margin (%) 2.94
GRPN's Operating margin (%) is ranked higher than
62% of the 346 Companies
in the Global Internet Content & Information industry.

( Industry Median: 6.35 vs. GRPN: 2.94 )
GRPN' s 10-Year Operating margin (%) Range
Min: -134.32   Max: 4.23
Current: 2.94

-134.32
4.23
Net-margin (%) -3.71
GRPN's Net-margin (%) is ranked higher than
50% of the 348 Companies
in the Global Internet Content & Information industry.

( Industry Median: 5.10 vs. GRPN: -3.71 )
GRPN' s 10-Year Net-margin (%) Range
Min: -124.51   Max: -2.35
Current: -3.71

-124.51
-2.35
ROE (%) -13.37
GRPN's ROE (%) is ranked lower than
54% of the 341 Companies
in the Global Internet Content & Information industry.

( Industry Median: 6.68 vs. GRPN: -13.37 )
GRPN' s 10-Year ROE (%) Range
Min: -4824.07   Max: -7.36
Current: -13.37

-4824.07
-7.36
ROA (%) -4.67
GRPN's ROA (%) is ranked lower than
52% of the 349 Companies
in the Global Internet Content & Information industry.

( Industry Median: 3.96 vs. GRPN: -4.67 )
GRPN' s 10-Year ROA (%) Range
Min: -102.11   Max: -2.7
Current: -4.67

-102.11
-2.7
ROC (Joel Greenblatt) (%) 56.35
GRPN's ROC (Joel Greenblatt) (%) is ranked higher than
70% of the 345 Companies
in the Global Internet Content & Information industry.

( Industry Median: 56.06 vs. GRPN: 56.35 )
GRPN' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -2549.08   Max: 81.52
Current: 56.35

-2549.08
81.52
» GRPN's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

GRPN Guru Trades in Q1 2013

Jim Simons 902,100 sh (New)
Steven Cohen 38,300 sh (New)
Chuck Royce 25,700 sh (New)
Jeremy Grantham 13,280 sh (New)
Chase Coleman 65,000,000 sh (unchged)
Wilbur Ross Sold Out
Chris Davis 16,411,209 sh (-0.55%)
» More
Q2 2013

GRPN Guru Trades in Q2 2013

RS Investment Management 203,300 sh (New)
Louis Moore Bacon 56,500 sh (New)
Steven Cohen 3,246,900 sh (+8377.55%)
Jim Simons 2,753,600 sh (+205.24%)
Jeremy Grantham Sold Out
Chris Davis Sold Out
Chuck Royce 23,200 sh (-9.73%)
Chase Coleman 18,000,000 sh (-72.31%)
» More
Q3 2013

GRPN Guru Trades in Q3 2013

Ron Baron 446,500 sh (New)
Louis Moore Bacon 485,000 sh (+758.41%)
Chase Coleman 18,000,000 sh (unchged)
Steven Cohen 600,000 sh (unchged)
RS Investment Management 203,300 sh (unchged)
Chuck Royce Sold Out
Jim Simons 1,135,900 sh (-58.75%)
Steven Cohen 1,256,929 sh (-61.29%)
» More
Q4 2013

GRPN Guru Trades in Q4 2013

Diamond Hill Capital 18,350 sh (New)
Columbia Wanger 7,000,000 sh (New)
Ron Baron 752,000 sh (+68.42%)
Jim Simons Sold Out
Louis Moore Bacon Sold Out
RS Investment Management Sold Out
Chase Coleman 11,463,759 sh (-36.31%)
Steven Cohen 323,470 sh (-74.27%)
» More
» Details

Insider Trades

Latest Guru Trades with GRPN

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ron Baron 2013-12-31 Add 68.42%0.02%$8.75 - $11.99 $ 7.41-28%752000
Ron Baron 2013-09-30 New Buy0.02%$8.31 - $12.641 $ 7.41-26%446500
Wilbur Ross 2013-03-31 Sold Out 0.01%$4.53 - $6.209 $ 7.4138%0
George Soros 2012-12-31 Sold Out 0.19%$2.63 - $5.47 $ 7.4172%0
Wallace Weitz 2012-12-31 Sold Out 0.07%$2.63 - $5.47 $ 7.4172%0
Joel Greenblatt 2012-12-31 Sold Out 0.03%$2.63 - $5.47 $ 7.4172%0
John Burbank 2012-12-31 Sold Out 0.01%$2.63 - $5.47 $ 7.4172%0
Lee Ainslie 2012-09-30 Sold Out 0.31%$4.15 - $9.51 $ 7.4119%0
George Soros 2012-09-30 New Buy0.19%$4.15 - $9.51 $ 7.4119%2500000
Wilbur Ross 2012-09-30 Reduce -76.78%0.04%$4.15 - $9.51 $ 7.4119%12099
Joel Greenblatt 2012-09-30 New Buy0.03%$4.15 - $9.51 $ 7.4119%77453
John Burbank 2012-09-30 New Buy0.01%$4.15 - $9.51 $ 7.4119%56723
Lee Ainslie 2012-06-30 Reduce -68.74%1.03%$9.43 - $15.28 $ 7.41-36%1979310
Wallace Weitz 2012-06-30 New Buy0.14%$9.43 - $15.28 $ 7.41-36%300000
Wilbur Ross 2012-06-30 New Buy0.05%$9.43 - $15.28 $ 7.41-36%52099
Lee Ainslie 2012-03-31 New Buy1.5%$16.74 - $24.58 $ 7.41-59%6331120
Ron Baron 2012-03-31 Sold Out 0.01%$16.74 - $24.58 $ 7.41-59%0
Ron Baron 2011-12-31 New Buy0.01%$15.24 - $26.19 $ 7.41-66%100000
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Groupon Inc

Baron Funds Comments on Groupon Inc. - Nov 22, 2013

During the quarter, after visiting with the new CEO, we decided to reinvest in daily-deal pioneer Groupon, Inc. (GRPN) Groupon has completely reinvented its business with mobile at the core. Groupon possesses 43 million active global customers, all of whom are highly transactional, purchasing goods and services directly from merchants on Groupon's platform. Groupon has transformed its business from one dependent on e-mailed deals "pushed" to consumers to one empowering consumers to "pull" the deals of their choice from Groupon's website and mobile apps. More than 50 million people worldwide have downloaded Groupon's mobile app and over 50% of its North American transactions are now coming from mobile devices. Mobile users have a much higher propensity to transact – as they proactively go to the app and search for a deal – and are thus far more valuable to Groupon's merchant partners.

From Ron Baron’s Baron Funds third quarter 2013 letter.


Check out Ron Baron latest stock trades

Top Ranked Articles about Groupon Inc

Weekly CEO Sells Highlight: Groupon Inc., Micron Technology, Sysorex Global Holdings Corp.
According to GuruFocus Insider Data, these are the largest CEO sales during the past week: Groupon Inc, Micron Technology, Sysorex Global Holdings Corp. Read more...
Weekly CEO Sells Highlight: Groupon Inc., Cell Therapeutics Inc., Standard Pacific Corp and Dollar General Corp
According to GuruFocus Insider Data, these are the largest CEO sales during the past week: Groupon Inc., Cell Therapeutics Inc., Standard Pacific Corp. and Dollar General Corp. Read more...
Baron Funds Comments on Groupon Inc.
During the quarter, after visiting with the new CEO, we decided to reinvest in daily-deal pioneer Groupon, Inc. (GRPN) Groupon has completely reinvented its business with mobile at the core. Groupon possesses 43 million active global customers, all of whom are highly transactional, purchasing goods and services directly from merchants on Groupon's platform. Groupon has transformed its business from one dependent on e-mailed deals "pushed" to consumers to one empowering consumers to "pull" the deals of their choice from Groupon's website and mobile apps. More than 50 million people worldwide have downloaded Groupon's mobile app and over 50% of its North American transactions are now coming from mobile devices. Mobile users have a much higher propensity to transact – as they proactively go to the app and search for a deal – and are thus far more valuable to Groupon's merchant partners. Read more...
Timing, Tempo and Touch - Tiger Global Review, Returns 38.9% over 12
Tiger Global Management is one tiger you won’t find on the PGA Tour or the endangered species list. The hedge fund’s founder, Chase Coleman, is one of the few investors who outsmarted Facebook and reportedly made around $1 billion for his investors when he sold out his Facebook shares in early 2013, according to Forbes. Read more...

Ratios

vs
industry
vs
history
P/B 6.93
GRPN's P/B is ranked lower than
63% of the 333 Companies
in the Global Internet Content & Information industry.

( Industry Median: 3.35 vs. GRPN: 6.93 )
GRPN' s 10-Year P/B Range
Min: 2.26   Max: 22.41
Current: 6.93

2.26
22.41
P/S 1.91
GRPN's P/S is ranked higher than
65% of the 362 Companies
in the Global Internet Content & Information industry.

( Industry Median: 2.64 vs. GRPN: 1.91 )
GRPN' s 10-Year P/S Range
Min: 0.78   Max: 5.35
Current: 1.91

0.78
5.35
PFCF 32.22
GRPN's PFCF is ranked higher than
58% of the 195 Companies
in the Global Internet Content & Information industry.

( Industry Median: 30.17 vs. GRPN: 32.22 )
GRPN' s 10-Year PFCF Range
Min: 5.41   Max: 421.37
Current: 32.22

5.41
421.37
EV-to-EBIT 50.46
GRPN's EV-to-EBIT is ranked lower than
63% of the 270 Companies
in the Global Internet Content & Information industry.

( Industry Median: 22.29 vs. GRPN: 50.46 )
GRPN' s 10-Year EV-to-EBIT Range
Min: 6.2   Max: 147
Current: 50.46

6.2
147

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 123.50
GRPN's Price/Net Current Asset Value is ranked lower than
88% of the 185 Companies
in the Global Internet Content & Information industry.

( Industry Median: 12.00 vs. GRPN: 123.50 )
GRPN' s 10-Year Price/Net Current Asset Value Range
Min: 98.24   Max: 196.08
Current: 123.5

98.24
196.08
Price/Tangible Book 10.59
GRPN's Price/Tangible Book is ranked lower than
65% of the 293 Companies
in the Global Internet Content & Information industry.

( Industry Median: 5.23 vs. GRPN: 10.59 )
GRPN' s 10-Year Price/Tangible Book Range
Min: 6.48   Max: 27.14
Current: 10.59

6.48
27.14
Price/Median PS Value 0.83
GRPN's Price/Median PS Value is ranked higher than
83% of the 325 Companies
in the Global Internet Content & Information industry.

( Industry Median: 1.10 vs. GRPN: 0.83 )
GRPN' s 10-Year Price/Median PS Value Range
Min: 0.59   Max: 1.94
Current: 0.83

0.59
1.94
Earnings Yield (Greenblatt) 2.00
GRPN's Earnings Yield (Greenblatt) is ranked lower than
58% of the 280 Companies
in the Global Internet Content & Information industry.

( Industry Median: 4.20 vs. GRPN: 2.00 )
GRPN' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.7   Max: 16
Current: 2

0.7
16

Business Description

Industry: Online Media » Internet Content & Information
Compare: » details
Traded in other countries:G5N.Germany
Groupon is incorporated in the state of Delaware. The group was founded in 2008. It is a local e-commerce marketplace that connects merchants to consumers by offering goods and services at a discount. Traditionally, local merchants have tried to reach consumers and generate sales through a variety of methods, including the yellow pages, direct mail, newspaper, radio, television and online advertisements and promotions. It provides consumers with savings and help them discover what to do, eat, see and buy in the places where they live and work. The company has organized operations into two principal segments: North America, which represents the United States and Canada; and International, which represents the rest of its global operations. For the first quarter of 2011, it derived approximately 53.8% of revenue from its International segment. Groupon primarily addresses the worldwide local commerce markets in the leisure, recreation, foodservice and retail sectors. Each day the company emails subscribers discounted offers for goods and services that are targeted by location and personal preferences. Consumers also access to deals directly through its websites and mobile applications. A typical deal might offer approximately $20 Groupon that redeemed for $40 in value at a restaurant, spa, yoga studio, car wash or other local merchant. Customers purchase Groupons from and redeem them with their merchants. Its revenue is the purchase price paid by the customer for the Groupon. The company's gross profit is the amount of revenue that it retains after paying an agreed upon percentage of the purchase price to the featured merchant. Its products include: Featured Daily Deals: It distributes a featured daily deal by email on behalf of local merchants to subscribers using targeting technology, which distributes deals to subscribers based on their location and personal preferences. It also offered daily deals from more than 40 national merchants, including Bath & Body Works, The Body Shop, Hyatt Regency, InterContinental Hotels, Lions Gate, Redbox, Shutterfly and Zipcar across subsets of the North American market; Deals Nearby: Daily deals that do not appear as a featured daily deal appear as Deals Nearby. Each Deal Nearby currently is summarized in fewer than 20 words next to the featured daily deal; National Deals: National merchants also have used marketplace as an alternative to traditional marketing and brand advertising; Groupon NOW: Groupon NOW is a deal initiated by a merchant on demand and offered instantly to subscribers through mobile devices and website. Groupon NOW deals target subscribers within close proximity of the merchant and the purchased Groupons typically expire within a few hours of the deal launch; Deal Channels: Deal Channels aggregate daily deals from the same category and are accessible through its website and through email alerts that subscribers sign up to receive. It is currently offering Deal Channels in home

Personalized Checklist








Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

Add Notes, Comments or Ask Questions

User Comments

Rajesh_mosali@yahoo
ReplyRajesh_mosali@yahoo - 3 days ago
Too many insider sales. On the good side, increasing cash, but then, eroding margins (higher revenues but lower margins). Increase competition from larger players such as AMZN and GOOG with local services.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide