Green Dot (GDOT) AI Stock Analysis

• Market Cap: $443.06M
• Dividend Yield: N/A
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: 14.82%
• EPS Growth: -461.78%
• Country: US
• Employees: 1,200
• Sector: Financial
• Sector Strength: 81
• Industry: Credit Finance
• EPS (TTM): -0.50
• Shares Outstanding: 54,229,675
• 10 Day Avg. Volume: 2,361,836
• 30 Day Avg. Volume: 1,379,319
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.26
• Price to Cash Flow (P/CF): -6.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.67
• Price Target Upside: 24.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

Green Dot's stock score reflects its mixed financial performance, with strengths in revenue growth and a solid balance sheet countered by profitability issues and cash flow variability. The technical analysis indicates a bearish trend, and valuation concerns persist due to negative profitability metrics. The earnings call provided some optimism with strong B2B growth and strategic investments, but consumer segment challenges and rising compliance costs remain significant hurdles.

Positive Factors

Asset Valuation

Green Dot's assets are likely undervalued, suggesting potential for growth in stock value.

Financial Performance

Green Dot's December quarter was highlighted by 70% adjusted EBITDA growth, marking the second consecutive quarter of growth.

Strategic Opportunities

The initiation of a process to explore potential strategic alternatives could unlock new opportunities for Green Dot.

Negative Factors

Business Headwinds

Sluggish trends at Green Dot are attributed to customer deconversions, retail business headwinds, and management's decision to shutter brands.

Industry Consolidation

Green Dot's bank charter has limited the list of potential buyers in industry consolidation.

Margin and Earnings Guidance

Initial guidance for 2025 calls for a 6%-12% decline in adjusted EBITDA, driven by 8%-11% revenue growth, offset by margin decline.

Green Dot Business Overview & Revenue Model

Company Description

Green Dot Corporation, a financial technology and bank holding company, provides various financial products 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 offers 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 also provides 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.

How the Company Makes Money

Green Dot Corporation makes money primarily through a combination of fees and service charges associated with its financial products. The company earns revenue from cardholder fees, which include monthly maintenance fees, transaction fees, and ATM withdrawal fees associated with its prepaid and reloadable debit cards. Additionally, Green Dot generates income through interchange fees collected from merchants whenever customers use their cards for purchases. Another significant revenue stream comes from its banking-as-a-service platform, which provides white-label banking solutions to partners, including major retailers and technology companies. These partnerships allow Green Dot to receive fees for account management and transaction processing. Interest income from cash deposits is another source of revenue, although it is less significant compared to fees and service charges.

Green Dot Financial Statement Overview

Summary

Green Dot's financial performance is mixed. Revenue growth is positive, but profitability challenges are evident with negative EBIT and net income margins. The balance sheet is strong with low leverage, but increasing liabilities are a concern. Cash flow management shows variability, with recent declines in free cash flow growth. The company needs to focus on operational efficiency and stabilizing cash flows.

Income Statement

Green Dot's revenue has shown consistent growth over the years, with a noticeable increase from $1.25 billion in 2020 to $1.72 billion in 2024. However, the company has faced profitability challenges, as reflected in the declining EBIT and net income margins, with a significant net loss in 2024. The gross profit remains stable, but the negative EBIT and EBITDA margins in 2024 highlight operational inefficiencies.

Balance Sheet

The balance sheet shows a healthy equity base with stockholders' equity increasing over time. The debt-to-equity ratio remains low, indicating prudent debt management. However, the equity ratio is declining, reflecting an increasing reliance on liabilities. Despite these concerns, the company's strong cash position and increasing total assets provide a stable financial foundation.

Cash Flow

Green Dot's cash flow from operations is positive, although it has decreased from previous years. The free cash flow has experienced significant fluctuations, indicating variability in cash flow management. The operating cash flow to net income ratio is positive, suggesting effective conversion of income to cash. However, the free cash flow to net income ratio is affected by the net losses in recent years.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.72B	1.50B	1.45B	1.43B	1.25B
	Gross Profit
1.72B	620.54M	724.17M	779.23M	726.89M
	EBIT
-1.67M	22.67M	94.38M	66.47M	30.07M
	EBITDA
77.53M	100.63M	164.79M	148.65M	115.44M
	Net Income Common Stockholders
-26.70M	6.72M	64.21M	47.48M	23.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.62B	716.12M	813.95M	1.32B	1.49B
	Total Assets
5.43B	4.82B	4.79B	4.73B	4.11B
	Total Debt
59.58M	67.06M	43.74M	15.13M	24.57M
	Net Debt
-1.53B	-615.21M	-770.20M	-1.31B	-1.47B
	Total Liabilities
4.56B	3.96B	4.01B	3.65B	3.10B
	Stockholders Equity
873.59M	859.35M	781.48M	1.07B	1.01B
Cash Flow		Free Cash Flow
7.10M	21.58M	193.36M	105.10M	150.14M
	Operating Cash Flow
81.38M	97.52M	277.69M	162.53M	209.18M
	Investing Cash Flow
81.40M	33.16M	-820.19M	-1.37B	-785.83M
	Financing Cash Flow
743.15M	-264.02M	36.71M	1.03B	1.01B

Green Dot Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.55
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDOT, the sentiment is Neutral. The current price of 8.55 is above the 20-day moving average (MA) of 7.42, above the 50-day MA of 8.32, and below the 200-day MA of 10.00, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 59.43 is Neutral, neither overbought nor oversold. The STOCH value of 96.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GDOT.

Green Dot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTU	79 Outperform	$171.89B	57.82	17.43%	0.63%	13.73%	9.93%
EVTC	78 Outperform	$2.39B	21.58	21.11%	0.54%	21.70%	43.10%
PYPL	74 Outperform	$70.10B	17.50	20.00%	―	7.10%	4.45%
XYZ	73 Outperform	$37.99B	12.98	14.50%	―	10.06%	38060.98%
GPN	73 Outperform	$24.57B	16.05	6.94%	1.00%	4.68%	63.39%
Sector *	64 Neutral	$14.53B	10.25	8.67%	4.22%	16.51%	-12.20%
GDOT	61 Neutral	$443.06M	―	-3.08%	―	14.82%	-461.78%

Green Dot Corporate Events

Green Dot Announces Leadership Change and Strategic Review

On March 7, 2025, Green Dot Corporation announced a leadership transition with William I Jacobs appointed as interim CEO and Chris Ruppel as interim President, following the departure of George Gresham. The company also engaged Citi to explore strategic alternatives, indicating a potential shift in its business strategy. This move could impact Green Dot’s market positioning and stakeholder interests, although the outcome of the strategic review remains uncertain.