Grindr Inc. (GRND) Stock Analysis
Grindr Inc. (GRND) Stock Analysis
Overall Grade: F (Concerning)
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Grindr Inc. faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | 39.9% | Above industry average |
| FCF Margin | 35.4% | Strong cash generation |
Investment Thesis: Strong return on invested capital of 39.9% suggests durable competitive advantages and efficient capital allocation.
What is Grindr Inc.'s Profitability and ROIC?
Grindr Inc. generates strong returns on invested capital at 39.9%, indicating efficient capital allocation and competitive advantages. Gross margin of 74.5% with operating margin at 28.0% reflects the company's strong market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 39.9% | Excellent | Strong capital efficiency |
| Gross Margin | 74.5% | Excellent | Strong pricing power |
| Operating Margin | 28.0% | Excellent | Efficient operations |
How Strong is Grindr Inc.'s Cash Flow Quality?
Grindr Inc. generated $145.5M in free cash flow over the trailing twelve months, representing a 35.4% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 35.4% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $145.5M | Good | Positive cash generation |
| OCF/Net Income | -3.0x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is Grindr Inc.'s Financial Health?
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Net Cash Position | $-273.0M | Adequate | Net debt position |
Is Grindr Inc. Stock Overvalued or Undervalued?
Grindr Inc. trades at a P/E of -46.9x, representing a premium to the sector median of N/A. Free cash flow yield of 5.2% offers attractive cash returns.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | -46.9x | Red flag | Reasonable valuation |
| EV/Sales | 7.3x | Adequate | Growth premium priced in |
| FCF Yield | 5.2% | Good | Attractive cash return |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 39.9% | Top 5% | 6.2x above |
| Free Cash Flow Margin | 35.4% | Top 10% | 3.5x above |
| Gross Margin | 74.5% | Top 25% | 1.4x above |
| Operating Margin | 28.0% | Top 25% | 4.4x above |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: 39.9% (Excellent - Top 5% of sector (median: 6.5%))
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: 35.4% (Excellent - Top 10% of sector (median: 10.0%))
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 74.5% (Excellent - Top 25% of sector (median: 52.9%))
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: 5.2% (Good)
Frequently Asked Questions
Q: What is Grindr Inc.'s Return on Invested Capital (ROIC)?
Grindr Inc. (GRND) has a trailing twelve-month Return on Invested Capital (ROIC) of 39.9%. This compares above the sector median of 6.5%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is Grindr Inc.'s Free Cash Flow Margin?
Grindr Inc. (GRND) has a free cash flow margin of 35.4%, generating $145.5 million in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is Grindr Inc. stock overvalued or undervalued?
Grindr Inc. (GRND) trades at a P/E ratio of -46.9x, which is above the sector median of N/A. The EV/Sales multiple is 7.3x. Free cash flow yield is 5.2%, which is in line with market averages.
Q: What is Grindr Inc.'s revenue and earnings growth?
Grindr Inc. (GRND) grew revenue by 29.0% year-over-year. Earnings per share decreased by 5.7% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: Is Grindr Inc. buying back stock?
Grindr Inc. (GRND) repurchased $450.5 million of stock over the trailing twelve months. This represents a buyback yield of 16.0%.
Q: How does Grindr Inc. compare to competitors in Technology?
Compared to other companies in Technology, Grindr Inc. (GRND) shows: ROIC of 39.9% is above the sector median of 6.5% (Top 0%). FCF margin of 35.4% exceeds the sector median of 10.0% (Top 8% of sector). Gross margin at 74.5% is 21.6 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with Grindr Inc.?
Investors in Grindr Inc. (GRND) should monitor these potential warning signs: 1) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q3 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.