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Coupang, Inc. Class A (CPNG)
:CPNG
US Market

Coupang (CPNG) AI Stock Analysis

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Coupang

(NYSE:CPNG)

Rating:74Outperform
Price Target:
$30.00
▲(5.97%Upside)
Coupang demonstrates strong financial health with consistent growth in revenue and profit, supported by solid cash flow and a stable balance sheet. Despite a high valuation suggesting potential overvaluation, the technical indicators show upward momentum. The positive earnings call further underscores growth potential, balancing the risks associated with high operational expenses and developing segment losses.
Positive Factors
Financial Performance
Analyst maintains a Buy rating with a price objective of US$34 for Coupang, believing in the company's potential despite regulatory challenges.
Market Position
Coupang's market share gains have continued without a blip despite competitors scrambling to respond.
Operational Efficiency
Analyst reiterates Buy on Coupang and raises the FY25E/26E product commerce adj. EBITDA, reflecting better operational efficiency.
Negative Factors
Regulatory Challenges
New policies under the government could impose mandatory store closures on weekends and limit new store openings, potentially impacting Coupang's operations.
Regulatory Impact
Capping or reducing the commission rate for restaurant delivery apps could lead to reduced promotions, affecting Coupang's Eats strategy.

Coupang (CPNG) vs. SPDR S&P 500 ETF (SPY)

Coupang Business Overview & Revenue Model

Company DescriptionCoupang, Inc. (CPNG) is a leading e-commerce company headquartered in Seoul, South Korea. It operates a comprehensive online marketplace offering a wide range of products, including electronics, apparel, household goods, and groceries. Coupang is known for its efficient logistics network and innovative services such as Rocket Delivery, which provides same-day or next-day delivery, enhancing customer convenience and satisfaction.
How the Company Makes MoneyCoupang generates revenue primarily through its e-commerce platform, where it sells a vast array of products directly to consumers. The company earns money from the sale of goods on its platform, taking a margin on products sold. Additionally, Coupang offers a subscription service called Rocket WOW, which provides customers with benefits like free shipping and exclusive discounts, contributing to a steady revenue stream. The company also earns from third-party sellers who use Coupang's marketplace to reach customers, collecting fees and commissions on their sales. Furthermore, Coupang invests in technology and logistics infrastructure to optimize delivery and supply chain efficiency, which enhances its value proposition and attracts more customers. Strategic partnerships with suppliers and vendors further enhance its product offerings and market presence, contributing to revenue growth.

Coupang Key Performance Indicators (KPIs)

Any
Any
Active Customers
Active Customers
Measures the number of customers who have made a purchase within a specific period, indicating the company's ability to attract and retain a loyal customer base.
Chart InsightsCoupang's active customer base has shown consistent growth, reaching 23.4 million by Q1 2025, reflecting strong customer engagement and market penetration. This aligns with the company's impressive revenue growth and margin improvements reported in the latest earnings call. Despite increased operational expenses and losses in developing segments, the strategic focus on expanding offerings and a $1 billion share repurchase program indicate confidence in sustaining future growth. The robust increase in active customers supports Coupang's positive outlook and strategic initiatives, particularly in the Product Commerce and Developing Offerings segments.
Data provided by:Main Street Data

Coupang Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 17.96%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in revenue growth and margin improvements, along with significant cash flow and strategic initiatives like the share repurchase program. However, increased operational expenses and losses in developing segments presented challenges. Overall, the highlights slightly outweigh the lowlights, indicating a positive outlook with strategic investments expected to drive future growth.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Consolidated revenue grew 11% year-over-year, or 21% on a constant currency basis, showcasing strong market performance and customer engagement.
Improved Margins
Gross profit margin increased by 217 basis points to 29.3%, and adjusted EBITDA margins improved by nearly 90 basis points to 4.8%.
Significant Free Cash Flow
Generated over $1 billion in free cash flow and $1.5 billion in adjusted EBITDA over the trailing 12 months.
Expansion in Product Commerce Segment
Product Commerce segment revenue grew 6% year-over-year, or 16% in constant currency, with significant customer engagement and increased selection.
Developing Offerings Segment Growth
Developing Offering segment revenues grew 67% year-over-year, or 78% in constant currency, driven by strong performance in Eats and Taiwan markets.
Share Repurchase Program Announcement
Board approved a $1 billion share repurchase program as part of a broader capital allocation strategy.
Negative Updates
Increased OG&A Expenses
OG&A expenses increased by nearly 80 basis points over last year due to investments in technology and infrastructure.
Developing Offerings Segment Losses
Developing Offerings experienced Q1 adjusted EBITDA losses of $168 million, with projected full-year losses between $650 million to $750 million.
High Effective Tax Rate
Reported an effective income tax rate of 47%, driven by losses in early-stage operations and nondeductible expenses.
Company Guidance
During the Coupang 2025 First Quarter Earnings Conference Call, the company provided several financial metrics and guidance. Consolidated revenue increased by 11% year-over-year, or 21% on a constant currency basis. Gross profit margin expanded by 217 basis points to 29.3%, and adjusted EBITDA margins improved by nearly 90 basis points to 4.8%. Over the trailing 12 months, Coupang generated $1.5 billion in adjusted EBITDA and over $1 billion in free cash flow. The Product Commerce segment revenue grew by 6% year-over-year, or 16% in constant currency, and the Developing Offering segment saw a 67% year-over-year increase, or 78% in constant currency. The company reported $154 million in operating income, a $114 million year-over-year increase, and $107 million in net income attributable to Coupang stockholders, resulting in $0.06 diluted earnings per share. Additionally, Coupang announced a $1 billion share repurchase program.

Coupang Financial Statement Overview

Summary
Coupang's financial performance is strong with consistent revenue and profit growth, solid margins, and a stable balance sheet. The income statement reflects strong market positioning and competitive edge, while the balance sheet and cash flow statement indicate financial stability and efficient cash generation. These elements support continued growth prospects.
Income Statement
82
Very Positive
Coupang's income statement shows a strong performance with consistent revenue growth, increasing from $30.27 billion in 2024 to $31.06 billion in TTM (Trailing-Twelve-Months). The gross profit margin is healthy at 29.67%, and the net profit margin has improved to 0.82%, indicating positive profitability trends. The EBIT margin at 1.77% and EBITDA margin at 3.95% reflect operational efficiency improvements. The consistent revenue and profit growth over recent years highlight Coupang's strong market position and competitive edge.
Balance Sheet
78
Positive
The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.93, which suggests moderate leverage and manageable debt levels. The return on equity is 5.86%, showing decent returns for shareholders. The equity ratio of 27.34% indicates a solid equity base relative to total assets. Overall, the balance sheet reflects financial stability and a reasonable level of risk, supporting future growth prospects.
Cash Flow
76
Positive
Coupang's cash flow statement demonstrates robust free cash flow growth of 0.11% from 2024 to TTM, which is a positive indicator of the company's ability to generate cash. The operating cash flow to net income ratio is high at 7.87, showcasing efficient cash generation relative to net income. The free cash flow to net income ratio of 3.94 further supports the company's strong cash position. However, the consistent capital expenditures suggest ongoing reinvestments, which could impact short-term cash reserves.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
31.06B30.27B24.38B20.58B18.41B11.97B
Gross Profit
9.22B8.83B6.19B4.71B2.95B1.99B
EBIT
550.00M436.00M473.00M-65.94M-1.49B-527.73M
EBITDA
1.23B1.05B1.25B474.70M-1.29B-227.58M
Net Income Common Stockholders
256.00M154.00M1.36B-92.04M-1.54B-474.89M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.11B5.88B5.24B3.51B3.49B1.25B
Total Assets
15.99B15.34B13.35B9.51B8.64B5.07B
Total Debt
4.08B3.73B2.79B2.40B2.12B2.24B
Net Debt
-2.03B-2.15B-2.46B-1.11B-1.37B990.22M
Total Liabilities
11.59B11.17B9.24B7.10B6.47B9.14B
Stockholders Equity
4.37B4.10B4.09B2.41B2.18B-4.07B
Cash FlowFree Cash Flow
1.01B1.01B1.76B-258.82M-1.08B-183.08M
Operating Cash Flow
2.01B1.89B2.65B565.44M-410.58M301.55M
Investing Cash Flow
-910.56M-819.00M-927.00M-848.25M-675.52M-520.65M
Financing Cash Flow
-103.80M-69.00M199.00M247.35M3.58B178.50M

Coupang Technical Analysis

Technical Analysis Sentiment
Positive
Last Price28.31
Price Trends
50DMA
24.96
Positive
100DMA
24.20
Positive
200DMA
24.12
Positive
Market Momentum
MACD
0.89
Positive
RSI
67.74
Neutral
STOCH
47.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPNG, the sentiment is Positive. The current price of 28.31 is above the 20-day moving average (MA) of 27.92, above the 50-day MA of 24.96, and above the 200-day MA of 24.12, indicating a bullish trend. The MACD of 0.89 indicates Positive momentum. The RSI at 67.74 is Neutral, neither overbought nor oversold. The STOCH value of 47.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPNG.

Coupang Risk Analysis

Coupang disclosed 76 risk factors in its most recent earnings report. Coupang reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Coupang Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$287.85B15.7613.04%0.81%4.28%28.42%
JDJD
81
Outperform
$52.86B8.2519.81%2.90%8.13%91.39%
80
Outperform
$121.49B58.7249.11%41.92%81.11%
74
Outperform
$51.35B204.706.06%20.88%-80.08%
PDPDD
72
Outperform
$142.20B11.1136.31%35.04%22.04%
63
Neutral
$6.94B11.342.80%4.26%2.68%-24.70%
55
Neutral
$79.72M-36.21%-18.56%-4.95%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CPNG
Coupang
28.31
6.91
32.29%
MELI
Mercadolibre
2,368.82
786.68
49.72%
JD
JD
33.61
4.84
16.82%
BABA
Alibaba
116.62
44.48
61.66%
GRWG
GrowGeneration
1.23
-1.19
-49.17%
PDD
PDD Holdings
103.43
-45.55
-30.57%

Coupang Corporate Events

Private Placements and Financing
Coupang Secures $1.5 Billion Credit Agreement
Neutral
Jun 5, 2025

On June 2, 2025, Coupang, Inc. entered into a new five-year revolving credit agreement with JPMorgan Chase Bank, N.A., replacing its previous agreement from February 27, 2021. This new agreement provides Coupang with a $1.5 billion unsecured revolving credit facility to be used for working capital and general corporate purposes, with interest rates based on various benchmark rates plus an applicable margin. The agreement also includes customary covenants and events of default, allowing for extensions if approved by lenders.

The most recent analyst rating on (CPNG) stock is a Hold with a $26.50 price target. To see the full list of analyst forecasts on Coupang stock, see the CPNG Stock Forecast page.

Executive/Board Changes
Coupang Announces Leadership Transition Effective June 2025
Neutral
May 30, 2025

Effective June 1, 2025, Hanseung Kang will transition to a new role at Coupang, Inc. Consequently, he will no longer serve as an executive officer, indicating a shift in the company’s leadership structure.

The most recent analyst rating on (CPNG) stock is a Buy with a $28.50 price target. To see the full list of analyst forecasts on Coupang stock, see the CPNG Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.