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Green Dot Corporation (GDOT)GDOT
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Upturn Advisory Summary
11/18/2024: GDOT (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: -66.11% | Upturn Advisory Performance 1 | Avg. Invested days: 21 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/18/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: -66.11% | Avg. Invested days: 21 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/18/2024 | Upturn Advisory Performance 1 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 550.24M USD |
Price to earnings Ratio - | 1Y Target Price 12.33 |
Dividends yield (FY) - | Basic EPS (TTM) -1.05 |
Volume (30-day avg) 418732 | Beta 0.91 |
52 Weeks Range 7.70 - 13.58 | Updated Date 11/20/2024 |
Company Size Small-Cap Stock | Market Capitalization 550.24M USD | Price to earnings Ratio - | 1Y Target Price 12.33 |
Dividends yield (FY) - | Basic EPS (TTM) -1.05 | Volume (30-day avg) 418732 | Beta 0.91 |
52 Weeks Range 7.70 - 13.58 | Updated Date 11/20/2024 |
Earnings Date
Report Date 2024-11-07 | When AfterMarket |
Estimate 0.17 | Actual 0.13 |
Report Date 2024-11-07 | When AfterMarket | Estimate 0.17 | Actual 0.13 |
Profitability
Profit Margin -3.4% | Operating Margin (TTM) -0.72% |
Management Effectiveness
Return on Assets (TTM) -1.11% | Return on Equity (TTM) -6.42% |
Revenue by Products
Revenue by Products - Current and Previous Year
Valuation
Trailing PE - | Forward PE 23.64 |
Enterprise Value -875577243 | Price to Sales(TTM) 0.34 |
Enterprise Value to Revenue 0.1 | Enterprise Value to EBITDA -1.72 |
Shares Outstanding 53786800 | Shares Floating 41919315 |
Percent Insiders 1.67 | Percent Institutions 94.6 |
Trailing PE - | Forward PE 23.64 | Enterprise Value -875577243 | Price to Sales(TTM) 0.34 |
Enterprise Value to Revenue 0.1 | Enterprise Value to EBITDA -1.72 | Shares Outstanding 53786800 | Shares Floating 41919315 |
Percent Insiders 1.67 | Percent Institutions 94.6 |
Analyst Ratings
Rating 2.8 | Target Price 19.17 | Buy - |
Strong Buy - | Hold 4 | Sell 1 |
Strong Sell - |
Rating 2.8 | Target Price 19.17 | Buy - | Strong Buy - |
Hold 4 | Sell 1 | Strong Sell - |
AI Summarization
Green Dot Corporation: A Comprehensive Stock Overview
Company Profile
History and Background
Founded in 1999, Green Dot Corporation (GDOT) is a leading financial technology and banking-as-a-service (BaaS) provider in the United States. Initially focusing on reloadable prepaid debit cards, GDOT later diversified into mobile banking, tax refund products, and government payment processing. Today, GDOT serves over 35 million customers and partners with over 75,000 retail distribution locations across the country.
Core Business Areas
- Reloadable Prepaid Cards: Green Dot offers various prepaid debit card programs under its own brand and for other companies. These cards provide access to financial services for the underbanked population and offer features like direct deposit, bill pay, and mobile banking.
- Mobile Banking: Green Dot's GoBank mobile banking platform provides low-cost checking accounts and debit cards with features like mobile check deposit, bill pay, and person-to-person payments.
- Tax Refund Products: GDOT offers prepaid debit cards and refund transfer services for tax filers.
- Government Payment Processing: GDOT processes payments for various government programs, including unemployment benefits and Social Security.
Leadership and Corporate Structure
GDOT's leadership team comprises experienced professionals with expertise in finance, technology, and banking. The current CEO and Chairman is Dan Henry. The company operates through a holding company structure with separate subsidiaries managing its core business activities.
Top Products and Market Share
Top Products
- Green Dot Prepaid Debit Card: GDOT's flagship product, this reloadable prepaid card is widely available and offers basic banking features.
- GoBank: This mobile banking platform provides checking and debit card services with a focus on low fees and convenience.
- Government Prepaid Cards: GDOT is a leading provider of prepaid cards for government benefit programs.
Market Share
GDOT holds a significant market share in the US prepaid card industry.
- Prepaid Cards: GDOT enjoys a market share of approximately 20%, placing them among the top providers in the US.
- Mobile Banking: GDOT's GoBank platform competes with other established players in the mobile banking market, including Chime and Varo Money.
- Government Payment Processing: GDOT is a leading participant in the government payment processing space, handling billions of dollars in transactions annually.
Product Performance and Market Reception
GDOT's products generally receive positive customer reviews, highlighting their convenience and accessibility. However, the company faces competition from other providers in each of its core business segments.
Total Addressable Market
The total addressable market (TAM) for GDOT's services encompasses several segments:
- Prepaid Card Market: The US prepaid card market is estimated at over $400 billion, with continued growth expected in the coming years.
- Mobile Banking Market: The US mobile banking market is experiencing rapid growth, reaching an estimated user base of over 100 million.
- Government Payment Processing: This segment represents a significant opportunity for GDOT, considering the increasing reliance on electronic payments for government programs.
Financial Performance
Recent Financial Statements Analysis
GDOT's recent financial performance has shown mixed results. Revenue has grown steadily, but profitability remains inconsistent. The company's net income and EPS have fluctuated in recent quarters.
Year-over-Year Performance Comparison
Compared to the previous year, GDOT's revenue has increased, while its profit margins and earnings per share have shown some variability. The company continues to invest in its technology and product offerings, which may eventually drive improved profitability.
Cash Flow and Balance Sheet Analysis
GDOT's cash flow statement indicates healthy operating cash flow, while its balance sheet shows moderate debt levels. The company's overall financial health appears stable.
Dividends and Shareholder Returns
Dividend History
GDOT does not currently pay dividends to shareholders.
Shareholder Returns
Shareholders have experienced limited returns in recent years due to the company's fluctuating stock price. However, long-term investors may benefit from potential future growth and increased profitability.
Growth Trajectory
Historical Growth Analysis
GDOT has shown moderate revenue growth in recent years. However, its profitability remains a concern for investors.
Future Growth Projections
Analysts expect GDOT to maintain its growth trajectory in the coming years, driven by increasing demand for its prepaid card and mobile banking products, especially within the underbanked population. The company's expansion into new markets and strategic partnerships could further accelerate its growth.
Recent Product Launches and Strategic Initiatives
GDOT continues to invest in its technology platform and has launched new features for its GoBank mobile app. Additionally, the company is actively pursuing partnerships with financial institutions and other organizations to expand its customer base and product offerings.
Market Dynamics
Industry Overview
The financial technology and BaaS industry is experiencing significant growth and innovation, driven by increasing demand for convenient and affordable financial services. The rise of mobile banking, digital payments, and open banking trends is reshaping the industry landscape, creating new opportunities for players like GDOT.
GDOT's Positioning and Adaptability
GDOT is well-positioned within the industry due to its established brand recognition, large customer base, and expansive distribution network. The company is also actively adapting to market changes by investing in technology and developing innovative financial products.
Competitors
Key Competitors
- Prepaid Cards: NetSpend (NS), MetaBank (META)
- Mobile Banking: Chime, Varo Money, Current
- Government Payment Processing: Fidelity National Information Services (FIS), Fiserv (FISV)
Competitive Advantages and Disadvantages
GDOT's competitive advantages include its established brand, extensive retail distribution network, and experience in serving the underbanked population. However, the company faces challenges from competitors who offer similar products at competitive prices and invest heavily in technology and customer acquisition.
Potential Challenges and Opportunities
Challenges
GDOT faces several challenges, including intense competition, regulatory changes, and technological disruptions. The company must continuously innovate and adapt its products and services to stay ahead of competitors and meet evolving customer demands.
Opportunities
GDOT has several potential opportunities for future growth. These include expanding its product portfolio, entering new markets, and pursuing strategic partnerships. By capitalizing on these opportunities, GDOT can solidify its position as a leading provider of financial services and BaaS solutions.
Recent Acquisitions (last 3 years)
GDOT has not made any major acquisitions in the past 3 years.
AI-Based Fundamental Rating
Based on an AI analysis of available data and public information, GDOT receives an overall fundamental rating of 7 out of 10.
Justification
This rating reflects the company's established market position, solid brand recognition, and potential for future growth. However, concerns regarding profitability, competition, and technological disruption are factored into the rating.
Sources and Disclaimers
This overview is based on information gathered from public sources, including GDOT's website and financial filings, industry reports, and news articles. The information provided here should not be considered as investment advice. Please conduct thorough due diligence and consult with a qualified financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Green Dot Corporation
Exchange | NYSE | Headquaters | Austin, TX, United States |
IPO Launch date | 2010-07-22 | CEO, President & Director | Mr. George W. Gresham |
Sector | Financial Services | Website | https://www.greendot.com |
Industry | Credit Services | Full time employees | 1200 |
Headquaters | Austin, TX, United States | ||
CEO, President & Director | Mr. George W. Gresham | ||
Website | https://www.greendot.com | ||
Website | https://www.greendot.com | ||
Full time employees | 1200 |
Green Dot Corporation, a financial technology and registered bank holding company, provides various financial services to consumers and businesses in the United States. It operates through three segments: Consumer Services, Business to Business Services, and Money Movement Services. The company provides deposit account programs, including consumer and small business checking account products, network-branded reloadable prepaid debit cards and gift cards, and secured credit programs. It offers money processing services, such as cash transfer services that enable consumers to deposit or pick up cash and pay bills with cash at the point-of-sale at any participating retailer; and simply paid disbursement services, which enable wages and authorized funds disbursement to its deposit account programs and accounts issued by any third-party bank or program manager. In addition, the company offers tax processing services comprising tax refund transfers, which provide the processing technology to facilitate receipt of a taxpayers' refund proceeds; small business lending to independent tax preparation providers that seek small advances; and fast cash advance, a loan that enables tax refund recipients. Green Dot Corporation was incorporated in 1999 and is headquartered in Austin, Texas.
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