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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 : 7/10

vs
industry
vs
history
Cash to Debt No Debt
GRPN's Cash to Debt is ranked higher than
99% of the 372 Companies
in the Global Internet Content & Information industry.

( Industry Median: 42.81 vs. GRPN: No Debt )
GRPN' s 10-Year Cash to Debt Range
Min: No Debt   Max: No Debt
Current: No Debt

Equity to Asset 0.36
GRPN's Equity to Asset is ranked lower than
57% of the 359 Companies
in the Global Internet Content & Information industry.

( Industry Median: 0.64 vs. GRPN: 0.36 )
GRPN' s 10-Year Equity to Asset Range
Min: -0.1   Max: 0.42
Current: 0.36

-0.1
0.42
Interest Coverage 260.32
GRPN's Interest Coverage is ranked higher than
61% of the 261 Companies
in the Global Internet Content & Information industry.

( Industry Median: 10000.00 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: 4
Z-Score: 2.39
M-Score: -2.49
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
63% of the 354 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 lower than
51% of the 354 Companies
in the Global Internet Content & Information industry.

( Industry Median: 4.19 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
55% of the 348 Companies
in the Global Internet Content & Information industry.

( Industry Median: 6.36 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
53% of the 355 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
68% of the 353 Companies
in the Global Internet Content & Information industry.

( Industry Median: 72.14 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

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%)
RS Investment Management Sold Out
Louis Moore Bacon Sold Out
Jim Simons Sold Out
Chase Coleman 11,463,759 sh (-36.31%)
Steven Cohen 323,470 sh (-74.27%)
» More
Q1 2014

GRPN Guru Trades in Q1 2014

Joel Greenblatt 33,719 sh (New)
Manning & Napier Advisors, Inc 2,033,160 sh (New)
Diamond Hill Capital 36,025 sh (+96.32%)
Columbia Wanger 9,700,000 sh (+38.57%)
Chase Coleman Sold Out
Ron Baron Sold Out
Steven Cohen 245,505 sh (-24.1%)
» More
Q2 2014

GRPN Guru Trades in Q2 2014

Manning & Napier Advisors, Inc 3,635,140 sh (+78.79%)
» 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 2014-03-31 Sold Out 0.04%$7.78 - $12.08 $ 6.4-35%0
Joel Greenblatt 2014-03-31 New Buy$7.78 - $12.08 $ 6.4-35%33719
Ron Baron 2013-12-31 Add 68.42%0.02%$8.75 - $11.99 $ 6.4-38%752000
Ron Baron 2013-09-30 New Buy0.02%$8.31 - $12.641 $ 6.4-36%446500
Wilbur Ross 2013-03-31 Sold Out 0.01%$4.53 - $6.209 $ 6.419%0
George Soros 2012-12-31 Sold Out 0.19%$2.63 - $5.47 $ 6.448%0
Wallace Weitz 2012-12-31 Sold Out 0.07%$2.63 - $5.47 $ 6.448%0
Joel Greenblatt 2012-12-31 Sold Out 0.03%$2.63 - $5.47 $ 6.448%0
John Burbank 2012-12-31 Sold Out 0.01%$2.63 - $5.47 $ 6.448%0
Lee Ainslie 2012-09-30 Sold Out 0.31%$4.15 - $9.51 $ 6.42%0
George Soros 2012-09-30 New Buy0.19%$4.15 - $9.51 $ 6.42%2500000
Wilbur Ross 2012-09-30 Reduce -76.78%0.04%$4.15 - $9.51 $ 6.42%12099
Joel Greenblatt 2012-09-30 New Buy0.03%$4.15 - $9.51 $ 6.42%77453
John Burbank 2012-09-30 New Buy0.01%$4.15 - $9.51 $ 6.42%56723
Lee Ainslie 2012-06-30 Reduce -68.74%1.03%$9.43 - $15.28 $ 6.4-44%1979310
Wallace Weitz 2012-06-30 New Buy0.14%$9.43 - $15.28 $ 6.4-44%300000
Wilbur Ross 2012-06-30 New Buy0.05%$9.43 - $15.28 $ 6.4-44%52099
Lee Ainslie 2012-03-31 New Buy1.5%$16.74 - $24.58 $ 6.4-65%6331120
Ron Baron 2012-03-31 Sold Out 0.01%$16.74 - $24.58 $ 6.4-65%0
Ron Baron 2011-12-31 New Buy0.01%$15.24 - $26.19 $ 6.4-71%100000
Premium More recent guru trades are included for Premium Members only!!
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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 5.30
GRPN's P/B is ranked higher than
60% of the 412 Companies
in the Global Internet Content & Information industry.

( Industry Median: 4.22 vs. GRPN: 5.30 )
GRPN' s 10-Year P/B Range
Min: 2.26   Max: 22.41
Current: 5.3

2.26
22.41
P/S 1.50
GRPN's P/S is ranked higher than
77% of the 412 Companies
in the Global Internet Content & Information industry.

( Industry Median: 3.25 vs. GRPN: 1.50 )
GRPN' s 10-Year P/S Range
Min: 0.78   Max: 5.35
Current: 1.5

0.78
5.35
PFCF 33.90
GRPN's PFCF is ranked higher than
81% of the 412 Companies
in the Global Internet Content & Information industry.

( Industry Median: 9999.00 vs. GRPN: 33.90 )
GRPN' s 10-Year PFCF Range
Min: 5.41   Max: 421.37
Current: 33.9

5.41
421.37
EV-to-EBIT 92.29
GRPN's EV-to-EBIT is ranked higher than
62% of the 412 Companies
in the Global Internet Content & Information industry.

( Industry Median: 48.40 vs. GRPN: 92.29 )
GRPN' s 10-Year EV-to-EBIT Range
Min: 6.2   Max: 147
Current: 92.29

6.2
147
Current Ratio 1.10
GRPN's Current Ratio is ranked lower than
56% of the 361 Companies
in the Global Internet Content & Information industry.

( Industry Median: 2.34 vs. GRPN: 1.10 )
GRPN' s 10-Year Current Ratio Range
Min: 0.47   Max: 1.37
Current: 1.1

0.47
1.37
Quick Ratio 1.10
GRPN's Quick Ratio is ranked lower than
53% of the 361 Companies
in the Global Internet Content & Information industry.

( Industry Median: 2.32 vs. GRPN: 1.10 )
GRPN' s 10-Year Quick Ratio Range
Min: 0.47   Max: 1.37
Current: 1.1

0.47
1.37

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 17.74
GRPN's Price/Tangible Book is ranked higher than
55% of the 412 Companies
in the Global Internet Content & Information industry.

( Industry Median: 9.29 vs. GRPN: 17.74 )
GRPN' s 10-Year Price/Tangible Book Range
Min: 5.67   Max: 27.14
Current: 17.74

5.67
27.14
Price/Median PS Value 0.74
GRPN's Price/Median PS Value is ranked higher than
90% of the 412 Companies
in the Global Internet Content & Information industry.

( Industry Median: 1.20 vs. GRPN: 0.74 )
GRPN' s 10-Year Price/Median PS Value Range
Min: 0.65   Max: 2.17
Current: 0.74

0.65
2.17
Earnings Yield (Greenblatt) 1.10
GRPN's Earnings Yield (Greenblatt) is ranked lower than
58% of the 297 Companies
in the Global Internet Content & Information industry.

( Industry Median: 4.20 vs. GRPN: 1.10 )
GRPN' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.7   Max: 16.1
Current: 1.1

0.7
16.1

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
» More Articles for GRPN

Headlines

Articles On GuruFocus.com
Here's Why Groupon Looks Like a Solid Investment Jul 25 2014 
Weekly CEO Sells Highlight: Alcoa Inc, Envision Healthcare Holdings Inc, Groupon Inc, and Broadcom C Jul 20 2014 
Groupon Is a Risky Investment That You Should Avoid Jun 30 2014 
3 Internet Companies That Investors Should Consider for Their Portfolios. Jun 26 2014 
A Bankruptcy Analysis of AMD, Groupon and RadioShack May 27 2014 
Hunting for Tennis Balls and Dead Cats May 12 2014 
Groupon Is Not A Good Investment May 12 2014 
Groupon, Twitter Investor Chase Coleman Buys Stake in Internet-Based Zillow Inc. Apr 29 2014 
Weekly CEO Sells Highlight: Groupon Inc., Micron Technology, Sysorex Global Holdings Corp. Apr 20 2014 
OpenTable Inc. Invites New Diners to Its Business Mar 31 2014 

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User Comments

Rajesh_mosali@yahoo
ReplyRajesh_mosali@yahoo - 3 months 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.

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