Coupang (CPNG) AI Stock Analysis

• Market Cap: $38.15B
• Dividend Yield: N/A
• Average Volume (3M): 8.11M
• Price to Earnings (P/E): 254.9
• Beta (1Y): 0.81
• Revenue Growth: 24.14%
• EPS Growth: -88.77%
• Country: US
• Employees: 95,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Specialty Retail
• EPS (TTM): 0.08
• Shares Outstanding: 1,647,684,600
• 10 Day Avg. Volume: 8,261,410
• 30 Day Avg. Volume: 8,107,713
• PEG Ratio: 0.30
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.39
• Price to Cash Flow (P/CF): 15.60
• P/FCF Ratio: 15.60
• 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: $29.36
• Price Target Upside: 38.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Coupang's overall performance is driven by significant revenue growth and profitability improvements, especially in 2023. However, challenges in margin maintenance and cash flow volatility are concerns. The technical analysis indicates potential downward pressure, while valuation metrics suggest overvaluation. Positive outcomes from the earnings call contribute positively, but the high P/E ratio and lack of dividend yield weigh on the overall score.

Positive Factors

Leadership and Growth

The analyst reiterates a Buy rating based on solid top-line growth given its strong leadership in the grocery category.

Market Share Growth

Coupang continues to gain market share due to improved user experience, growth in active consumers, and increased same-day and dawn deliveries.

Revenue and Profitability

Adjusted EBITDA of US$421mn was 12% ahead of consensus and 28% ahead of expectations as losses from Developing Offerings were much lower than expected.

Negative Factors

Earnings and Forecasts

EPS estimates are revised down by 41% due to a higher effective tax rate and fewer tax benefits from net operating loss.

Profitability Challenges

Developing offerings' EBITDA loss is expected to increase in Taiwan, indicating potential challenges in profitability.

Regulatory and Market Risks

Downside risks to 2025 outlook include subdued e-commerce industry growth amid weak macro and regulatory pressure on Eats take-rates.

Coupang Business Overview & Revenue Model

Company Description

Coupang, Inc. (CPNG) is a leading e-commerce company based in South Korea, recognized for its comprehensive and innovative online shopping platform. It operates primarily in the e-commerce sector, providing a wide array of products ranging from consumer electronics and clothing to groceries and household items. The company is distinguished by its cutting-edge logistics and delivery services, including the Rocket Delivery system, which offers same-day or next-day delivery. Coupang leverages advanced technology and an extensive network to enhance customer experience and streamline the shopping process.

How the Company Makes Money

Coupang generates revenue primarily through the sale of goods on its e-commerce platform. The company operates as a first-party retailer, purchasing products in bulk directly from manufacturers and selling them to consumers at a markup. Additionally, Coupang utilizes a third-party marketplace model, allowing external sellers to list and sell their products on the platform, in which it earns commissions on sales. Another significant revenue stream is its subscription service, Rocket WOW, which offers benefits such as free delivery and discounts in exchange for a membership fee. The company also monetizes its logistics and fulfillment services by offering them to third-party sellers and partners. Coupang's earnings are further bolstered by advertising revenue, as brands pay to promote their products on the platform.

Coupang Financial Statement Overview

Summary

Coupang has demonstrated significant revenue growth and improved profitability in 2023, with a notable net income of $1.36 billion. However, challenges in cost management in 2024 and fluctuations in free cash flow highlight areas of concern.

Income Statement

Coupang has demonstrated significant revenue growth with a consistent increase over the past years, notably from $6.27 billion in 2019 to $24.38 billion in 2023. The gross profit margin improved significantly to 25.4% in 2023, showing enhanced profitability. However, the recent negative gross profit margin in 2024 indicates potential challenges in cost management. The company has turned profitable with a net income of $1.36 billion in 2023, leading to a net profit margin of 5.6%, although this declined in 2024.

Balance Sheet

The company has improved its financial position with increasing stockholders' equity, which reached $4.09 billion in 2023. The debt-to-equity ratio shows a stable leverage position, with total debt decreasing as a proportion of equity. However, the equity ratio indicates room for improvement in financial stability. The equity deficit in earlier years has been addressed, but the recent decline in equity ratio suggests potential risks.

Cash Flow

Coupang's cash flow from operations has improved, reaching $2.65 billion in 2023, indicating strong cash generation capabilities. The free cash flow turned positive, demonstrating effective capital management. However, fluctuations in free cash flow growth, with a decrease in 2024, highlight potential volatility in cash management. The operating cash flow to net income ratio is healthy, reflecting efficient conversion of earnings into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
30.27B	24.38B	20.58B	18.41B	11.97B
	Gross Profit
8.83B	6.19B	4.71B	2.95B	1.99B
	EBIT
436.00M	473.00M	-65.94M	-1.49B	-527.73M
	EBITDA
1.05B	1.25B	474.70M	-1.29B	-227.58M
	Net Income Common Stockholders
154.00M	1.36B	-92.04M	-1.54B	-474.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.88B	5.24B	3.51B	3.49B	1.25B
	Total Assets
15.34B	13.35B	9.51B	8.64B	5.07B
	Total Debt
3.24B	2.79B	2.40B	2.12B	2.24B
	Net Debt
-2.64B	-2.46B	-1.11B	-1.37B	990.22M
	Total Liabilities
11.17B	9.24B	7.10B	6.47B	9.14B
	Stockholders Equity
4.10B	4.09B	2.41B	2.18B	-4.07B
Cash Flow		Free Cash Flow
1.01B	1.76B	-258.82M	-1.08B	-183.08M
	Operating Cash Flow
1.89B	2.65B	565.44M	-410.58M	301.55M
	Investing Cash Flow
-819.00M	-927.00M	-848.25M	-675.52M	-520.65M
	Financing Cash Flow
-69.00M	199.00M	247.35M	3.58B	178.50M

Coupang Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPNG, the sentiment is Neutral. The current price of 21.13 is below the 20-day moving average (MA) of 21.67, below the 50-day MA of 22.91, and below the 200-day MA of 23.22, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 77.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CPNG.

Coupang Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BABA	81 Outperform	$267.46B	15.31	11.97%	0.89%	4.28%	28.42%
MELI	78 Outperform	$101.24B	52.98	51.50%	―	43.56%	91.72%
JD	72 Outperform	$60.08B	10.22	17.55%	2.13%	5.20%	77.60%
PDD	70 Outperform	$131.04B	8.94	45.06%	―	57.51%	82.28%
Sector *	59 Neutral	$6.44B	11.30	3.27%	4.27%	2.37%	-21.19%
CPNG	57 Neutral	$38.15B	254.89	3.76%	―	24.14%	-88.77%
GRWG	46 Neutral	$57.55M	―	-33.74%	―	-16.39%	-9.08%