X
<

Groupon's 1Q17 in a 2Q17 Context

PART:
1 2 3 4 5 6
Part 6
Groupon's 1Q17 in a 2Q17 Context PART 6 OF 6

Understanding Groupon’s Stock Trend

Stock trends

On June 14, Groupon (GRPN) stock yielded a return of 2.27% on a volume of 7.04 million and closed at $3.15. The company has generated investor returns of -7.89% in the trailing-one-month period and -0.32% in the trailing-12-month period. The company’s share price has gained 3.96% in the trailing-five-day period.

Understanding Groupon&#8217;s Stock Trend

Interested in AMZN? Don't miss the next report.

Receive e-mail alerts for new research on AMZN

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

By comparison, Yelp (YELP), Alibaba (BABA) Amazon.com (AMZN), and eBay (EBAY), Groupon’s peer companies in the Internet sector, have generated returns of 6.45%, 13.57%, 1.57% and 1.26%, respectively, in the trailing-one-month period.

Price multiples

Groupon was trading at a forward EV-to-EBITDA (earnings before interest, tax, depreciation, and amortization) multiple of ~6.1x. By comparison, Yelp, Alibaba, Amazon, and eBay have EV-to-EBITDA multiples of ~13.9 x, ~22.20x, ~23.6x, and ~11.6x, respectively.

Groupon’s debt situation

Groupon has short-term debt of ~$28 million and long-term debt of ~$195 million, for a total debt of~$224 million. As the company has total capital of ~$435 million, its total-debt-to-total-capital ratio comes in at 46%.

The company’s debt-to-assets, debt-to-equity, and debt-to-EBITDA are now 0.15, 106.4, and 2.6, respectively, while its EBIT-to-interest ratio is -7.7x. The latter ratio, which is also referred to as the interest coverage ratio, provides a clue as to the company’s ability to pay interest on outstanding debt.

Notably, Groupon has a debt-to-enterprise value of 17%.

X

Please select a profession that best describes you: