Last Updated: 09 Nov 2024
Executive Summary
Groupon Inc. (GRPN) is a leading online marketplace connecting consumers with merchants. Despite facing challenges in recent years, the company has shown signs of improvement in its financial performance. With a market capitalization of $435.57 million, GRPN is currently trading at $10.96 per share, below its 52-week high of $19.56. The company's fundamentals are mixed, with a negative EPS and profit margin but a solid PEGRatio of 14.66. Technical analysis suggests a potential downward trend in the short term, while the long-term outlook remains uncertain.
Company Overview
Groupon was founded in 2008 and has grown to become one of the largest online marketplaces in the world. The company offers a wide range of deals and discounts on products and services, from travel and dining to electronics and home goods. Groupon operates in over 150 countries and has a global customer base of over 50 million.
Fundamental Analysis
Revenue: GRPN's revenue for the trailing twelve months (TTM) was $511.89 million, a decrease of 0.035% year-over-year.
Earnings: The company reported a diluted EPS of -$0.99 for the TTM, reflecting a significant loss.
Profitability: GRPN's profit margin is -0.0703, indicating that the company is not currently profitable.
Valuation: The company has a forward PE ratio of 14.62, which is below the industry average.
Cash Flow: GRPN's EBITDA for the TTM was $26.36 million, indicating a positive cash flow.
Technical Analysis
Trend: The 50-day moving average ($10.8) is below the 200-day moving average ($13.59), suggesting a potential downward trend.
Support and Resistance: The stock price has recently found support at $10.50 and resistance at $11.50.
Momentum: The relative strength index (RSI) is currently at 45, indicating neutral momentum.
Short Term Outlook
In the short term, GRPN's stock price may continue to face downward pressure. The technical analysis suggests a potential decline, and the company's fundamentals remain weak. Investors should exercise caution and consider waiting for a more favorable entry point.
Long Term Outlook
The long-term outlook for GRPN is uncertain. The company has faced challenges in recent years, but it has also taken steps to improve its financial performance. If GRPN can continue to execute on its strategy and return to profitability, the stock price could have upside potential in the long run. However, investors should be aware that the company operates in a competitive industry and faces significant risks.
Analyst Recommendations
Analysts have mixed opinions on GRPN's stock. Three analysts recommend buying the stock, while one analyst recommends selling it. The average analyst target price is $17.75, which represents a potential upside of 61.7%.
