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Groupon Piotroski F-Score

: 1 (As of Today)
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Warning Sign:

Piotroski F-Score of 1 is low, which usually implies poor business operation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Groupon has an F-score of 1. It is a bad or low score, which usually implies poor business operation.

The historical rank and industry rank for Groupon's Piotroski F-Score or its related term are showing as below:

GRPN' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 5   Max: 8
Current: 1

During the past 13 years, the highest Piotroski F-Score of Groupon was 8. The lowest was 1. And the median was 5.


Groupon Piotroski F-Score Historical Data

The historical data trend for Groupon's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Groupon Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 5.00 1.00 4.00

Groupon Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 4.00 4.00 5.00 1.00

Competitive Comparison

For the Internet Content & Information subindustry, Groupon's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Groupon Piotroski F-Score Distribution

For the Interactive Media industry and Communication Services sector, Groupon's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Groupon's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 78.107 + 29.385 + -34.852 + -91.227 = $-18.6 Mil.
Cash Flow from Operations was -74.176 + 30.988 + -78.164 + -30.192 = $-151.5 Mil.
Revenue was 214.171 + 223.162 + 153.32 + 153.216 = $743.9 Mil.
Gross Profit was 181.439 + 194.751 + 134.001 + 133.972 = $644.2 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(1108.54 + 1087.871 + 1157.881 + 1069.153 + 916.45) / 5 = $1067.979 Mil.
Total Assets at the begining of this year (Jun21) was $1,108.5 Mil.
Long-Term Debt & Capital Lease Obligation was $268.9 Mil.
Total Current Assets was $410.5 Mil.
Total Current Liabilities was $493.9 Mil.
Net Income was -16.27 + 13.978 + 14.558 + -3.382 = $8.9 Mil.

Revenue was 304.019 + 343.053 + 263.817 + 265.958 = $1,176.8 Mil.
Gross Profit was 160.022 + 178.799 + 166.983 + 193.943 = $699.7 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(1369.319 + 1349.818 + 1411.507 + 1402.037 + 1108.54) / 5 = $1328.2442 Mil.
Total Assets at the begining of last year (Jun20) was $1,369.3 Mil.
Long-Term Debt & Capital Lease Obligation was $297.4 Mil.
Total Current Assets was $647.4 Mil.
Total Current Liabilities was $712.7 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Groupon's current Net Income (TTM) was -18.6. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Groupon's current Cash Flow from Operations (TTM) was -151.5. ==> Negative ==> Score 0.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=-18.587/1108.54
=-0.0167671

ROA (Last Year)=Net Income/Total Assets (Jun20)
=8.884/1369.319
=0.0064879

Groupon's return on assets of this year was -0.0167671. Groupon's return on assets of last year was 0.0064879. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Groupon's current Net Income (TTM) was -18.6. Groupon's current Cash Flow from Operations (TTM) was -151.5. ==> -151.5 <= -18.6 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=268.899/1067.979
=0.25178304

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=297.352/1328.2442
=0.22386847

Groupon's gearing of this year was 0.25178304. Groupon's gearing of last year was 0.22386847. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=410.537/493.936
=0.83115424

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=647.352/712.748
=0.90824808

Groupon's current ratio of this year was 0.83115424. Groupon's current ratio of last year was 0.90824808. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Groupon's number of shares in issue this year was 30.039. Groupon's number of shares in issue last year was 29.274. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=644.163/743.869
=0.86596296

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=699.747/1176.847
=0.59459471

Groupon's gross margin of this year was 0.86596296. Groupon's gross margin of last year was 0.59459471. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=743.869/1108.54
=0.67103487

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=1176.847/1369.319
=0.85943962

Groupon's asset turnover of this year was 0.67103487. Groupon's asset turnover of last year was 0.85943962. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+0+0+0+0+0+0+1+0
=1

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Groupon has an F-score of 1. It is a bad or low score, which usually implies poor business operation.

Groupon  (NAS:GRPN) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Groupon Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Groupon's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Groupon Business Description

Groupon logo
Traded in Other Exchanges
Address
600 West Chicago Avenue, Suite 400, Chicago, IL, USA, 60654
Groupon acts as the middleman between consumers and merchants, offering a variety of products and services at discounts via its online store. It offers consumers daily deals (in the form of online vouchers) from local merchants. Groupon also sells products directly to consumers. It generates revenue from the take rate on the purchase and/or usage of the vouchers (40% of total revenue) and from direct sales (60% of total revenue). More than 65% of Groupon's revenue comes from North America.
Executives
Rpd Fund Management Llc 10 percent owner 767 THIRD AVE 35TH FLOOR NEW YORK NY 10017
Okumus Ahmet H 10 percent owner C/O OKUMUS FUND MANAGEMENT LTD. 767 THIRD AVENUE, 35TH FLOOR NEW YORK NY 10022
Rpd Opportunity Fund Lp 10 percent owner 767 THIRD AVE 35TH FLOOR NEW YORK NY 10017
Pale Fire Capital Se other: See Footnote 1 and Remarks ZATECKA 55/14, JOSEFOV PRAGUE 2N 110 00
Barta Jan other: See Footnote 1 NA BATERIICH 104/35, BREVNOV PRAGUE 2N 16200
Senkypl Dusan other: See Footnote 1 and Remarks JESTRABI 493, OSNICE JESENICE 2N 252 42
Dvorak Kerrie officer: Interim CAO 600 W. CHICAGO AVENUE SUITE 400 CHICAGO IL 60654
Deshpande Kedar director, officer: Chief Executive Officer 600 W CHICAGO AVENUE SUITE 400 CHICAGO IL 60654
Schmitz Damien officer: Interim CFO 600 W CHICAGO AVENUE SUITE 400 CHICAGO IL 60654
Herauf Jeremy officer: Chief Accounting Officer 600 W. CHICAGO AVENUE SUITE 400 CHICAGO IL 60654
Vaid Helen director 600 WEST CHICAGO AVE. STE 400 CHICAGO IL 60654
Mosley Valerie director TWO INTERNATIONAL PLACE BOSTON MA 02110
Cooper Aaron Z. officer: Interim CEO 600 WEST CHICAGO AVE. STE 400 CHICAGO IL 60654
Gangadharan Manjunath officer: Chief Accounting Officer 600 WEST CHICAGO AVE. STE 400 CHICAGO IL 60654
Thomas Melissa officer: CAO & Treasurer 600 WEST CHICAGO AVE STE 400 CHICAGO IL 60654

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