Company Overview
Green Dot Corporation operates as a financial technology and registered bank holding company, delivering a comprehensive suite of financial services to both consumers and businesses across the United States. The company structures its operations through three distinct segments, including Consumer Services, Business to Business Services, and Money Movement Services, allowing it to address diverse needs within the credit services industry. This entity is categorized within the broader Financial Services sector, where it competes by leveraging technology to facilitate payments and provide banking solutions. In terms of scale, the company holds a market capitalization of $620.69M and generates annual revenue of $2.07B while employing 900 individuals. These valuation and revenue figures indicate that Green Dot maintains a significant presence in the credit services landscape, positioning itself as a substantial player capable of managing billions in transaction volume and supporting a workforce of nearly a thousand employees.
Financial Health
The company reported revenue of $2.07B over the trailing twelve months, yet it recorded a net income of -$98,866,000, while EBITDA data is not available in the provided records. The substantial gap between the $2.07B revenue and the negative net income of -$98,866,000 reveals a cost structure where operating expenses and interest costs significantly erode pre-tax profits, resulting in a loss for the period. Regarding liquidity generation, free cash flow figures are not available, which limits the immediate ability to assess the company's current operational cash conversion and short-term financial flexibility based on this specific metric. The company's margin profile presents a challenging picture, with a gross margin of 0.0%, an operating margin of -2.7%, and a profit margin of -4.8%. The 0.0% gross margin suggests that the cost of revenue directly offsets gross sales in the reported data, while the negative operating and profit margins indicate that overhead costs and operational inefficiencies are further reducing profitability to a negative level. On the balance sheet, the company holds cash of $1.42B against total debt of $65.47M, creating a scenario where available cash vastly exceeds interest-bearing obligations. Although the debt-to-equity ratio is not available, the sheer volume of cash relative to debt suggests a conservative approach to leverage regarding interest-bearing liabilities, despite the equity base potentially being impacted by losses. Current ratio data is not available, preventing a direct calculation of short-term liquidity using current assets and liabilities, though the high cash balance generally implies strong immediate solvency. Return on Equity stands at -11.2% and Return on Assets is -1.7%, metrics that reveal management effectiveness is currently negative as the company is unable to generate positive returns on the capital invested by shareholders or the assets it controls.
Valuation Assessment
The company exhibits a P/E Ratio (TTM) of N/A due to its negative earnings, while the Forward P/E is listed at 6.69, implying that the market prices the stock based on anticipated future profitability rather than current historical performance. The price-to-book ratio is 0.70, indicating that the market values the company at 30% below its book value, which suggests a deep discount relative to the net asset value recorded on the balance sheet. Alternative valuation metrics provide further context, with the price-to-sales ratio at 0.30 and an EV/EBITDA of N/A, suggesting that investors are valuing the firm primarily on its sales revenue rather than earnings multiples or enterprise value efficiency. Regarding trading range, the stock has a 52-week high of $15.41 and a 52-week low of $6.59, meaning the current price sits within a wide band of volatility, though the specific current price is not provided to calculate the exact percentage deviation from these bounds. The beta value is 0.84, which indicates that the stock's price volatility is lower than the broader market, suggesting it is less sensitive to general market fluctuations compared to a benchmark index with a beta of 1.0.
Growth & Income
Revenue growth for the trailing twelve months is 14.8%, while earnings growth is N/A due to the company reporting a net loss for the period. Since earnings are negative, they are not growing in a traditional sense relative to revenue, which implies that top-line expansion has not yet translated into bottom-line profitability or that cost increases have outpaced revenue gains. As a non-dividend payer, the company has a dividend yield of N/A and a payout ratio of 0.0%, indicating that it does not distribute cash to shareholders but instead retains earnings to fund operations, debt reduction, or strategic investments. The overall growth and income profile is characterized by strong top-line expansion of 14.8% occurring alongside a significant net loss, with no dividend income available to complement capital appreciation potential.