Coupang (CPNG) AI Stock Analysis

• Market Cap: $51.81B
• Dividend Yield: N/A
• Average Volume (3M): 10.39M
• Price to Earnings (P/E): 143.1
• Beta (1Y): 0.73
• Revenue Growth: 18.69%
• EPS Growth: -65.55%
• Country: US
• Employees: 95,000
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Specialty Retail
• EPS (TTM): 0.02
• Shares Outstanding: 1,665,262,200
• 10 Day Avg. Volume: 8,991,786
• 30 Day Avg. Volume: 10,393,596
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.65
• Enterprise Value/Gross Profit: 5.53
• Enterprise Value/Ebitda: 37.38
• 1Y Price Target: $34.43
• Price Target Upside: 21.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 62 Neutral
• Price Target: $30.00 ▲(5.56% Upside)

Coupang's overall stock score reflects a mix of strengths and challenges. The most significant factor is the company's financial performance, which shows improvement in profitability but struggles with revenue growth and cash flow. The earnings call provided a positive outlook with strong revenue growth, but high expenses and tax rates are concerns. Technical analysis and valuation suggest caution, with potential overvaluation and neutral momentum indicators.

Positive Factors

Core Business Performance

Better than expected July product commerce indicates strong performance in Coupang's core business areas.

Earnings and Growth

Coupang's grocery category showed robust growth, maintaining a strong year-over-year increase.

Market Expansion

Coupang's expansion strategy in Taiwan is seen as constructive, leveraging management's proactive investment approach.

Negative Factors

Financial Losses

The adj. EBITDA loss of US$235mn was larger than expected mainly due to Taiwan.

Operational Strategy

Capping or reducing the commission rate for restaurant delivery apps could lead to reduced promotions, affecting Coupang's Eats strategy.

Regulatory Challenges

New policies under the government could impose mandatory store closures on weekends and limit new store openings, potentially impacting Coupang's operations.

Coupang Business Overview & Revenue Model

Company Description

Coupang, 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 Money

Coupang 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 Financial Statement Overview

Summary

Coupang's financial performance shows improvement in profitability and operational efficiency, but faces challenges in revenue growth and cash flow management. The balance sheet remains stable with a balanced leverage position.

Income Statement

Coupang's income statement shows a mixed performance. The company has achieved a positive net profit margin of 0.82% in the TTM period, a significant improvement from previous losses. However, revenue has declined by 17.08% in the TTM, indicating potential challenges in maintaining growth. Gross profit margin remains stable at around 29.68%, showing efficiency in managing costs. EBIT and EBITDA margins have improved, reflecting better operational efficiency.

Balance Sheet

Coupang's balance sheet reflects a moderate financial position. The debt-to-equity ratio is 0.93, indicating a balanced approach to leveraging. Return on equity has improved to 6.20% in the TTM, showcasing better profitability. The equity ratio stands at 26.27%, suggesting a reasonable level of equity financing. Overall, the balance sheet indicates stability with manageable leverage.

Cash Flow

Coupang's cash flow statement reveals some concerns. Free cash flow has decreased by 22.93% in the TTM, indicating potential cash management issues. The operating cash flow to net income ratio is 0.25, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio of 0.50 indicates that half of the net income is converted into free cash flow, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.26B	30.27B	24.38B	20.58B	18.41B	11.97B
Gross Profit	9.64B	8.83B	6.19B	4.71B	2.95B	1.99B
EBITDA	1.43B	1.05B	907.00M	165.00M	-1.30B	-227.58M
Net Income	365.00M	154.00M	1.36B	-92.00M	-1.54B	-463.16M
Balance Sheet
Total Assets	17.83B	15.34B	13.35B	9.51B	8.64B	5.07B
Cash, Cash Equivalents and Short-Term Investments	6.80B	5.88B	5.24B	3.51B	3.49B	1.25B
Total Debt	4.58B	3.73B	2.79B	2.40B	2.12B	2.23B
Total Liabilities	13.15B	11.24B	9.26B	7.10B	6.47B	9.14B
Stockholders Equity	4.68B	4.10B	4.09B	2.41B	2.18B	-4.07B
Cash Flow
Free Cash Flow	777.00M	1.01B	1.76B	-259.00M	-1.08B	-183.08M
Operating Cash Flow	1.91B	1.89B	2.65B	565.00M	-411.00M	301.55M
Investing Cash Flow	-1.04B	-819.00M	-927.00M	-848.00M	-676.00M	-520.65M
Financing Cash Flow	119.00M	-69.00M	199.00M	247.00M	3.58B	178.50M

Coupang Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.42
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Negative. The current price of 28.42 is below the 20-day moving average (MA) of 28.55, below the 50-day MA of 29.44, and above the 200-day MA of 25.39, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 43.22 is Neutral, neither overbought nor oversold. The STOCH value of 29.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPNG.

Coupang Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BABA	80 Outperform	$297.14B	16.28	13.04%	1.62%	5.17%	74.55%
PDD	79 Outperform	$172.08B	13.51	31.78%	―	20.09%	-1.83%
SE	78 Outperform	$111.47B	95.54	14.48%	―	34.12%	―
MELI	72 Outperform	$121.95B	59.40	43.83%	―	38.27%	46.21%
JD	70 Outperform	$51.11B	9.03	17.26%	3.08%	14.61%	32.78%
CPNG	62 Neutral	$51.81B	143.10	8.55%	―	18.69%	-65.55%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%

Coupang Corporate Events

Coupang Holds Annual Stockholders Meeting on June 12

On June 12, 2025, Coupang, Inc. held its Annual Meeting of Stockholders where three proposals were voted on by stockholders representing approximately 90.98% of the voting power. The meeting resulted in the election of directors, the ratification of Samil PricewaterhouseCoopers as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and the approval of the compensation of the company’s named executive officers.

Coupang Secures $1.5 Billion Credit Agreement

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.

Coupang Announces Leadership Transition Effective June 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.