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)

Market Cap

$51.35B

Dividend YieldN/A

Average Volume (3M)11.28M

Price to Earnings (P/E)204.7

Beta (1Y)0.81

Revenue Growth20.88%

EPS Growth-80.08%

CountryUS

Employees95,000

SectorConsumer Cyclical

Sector Strength57

IndustrySpecialty Retail

Share Statistics

EPS (TTM)0.06

Shares Outstanding1,657,810,000

10 Day Avg. Volume8,277,845

30 Day Avg. Volume11,284,754

Financial Highlights & Ratios

PEG Ratio2.96

Price to Book (P/B)10.75

Price to Sales (P/S)0.00

P/FCF Ratio-100.29

Enterprise Value/Market Cap0.48

Enterprise Value/Revenue0.21

Enterprise Value/Gross Profit2.70

Enterprise Value/Ebitda6.52

Forecast

1Y Price Target

$33.25

Price Target Upside17.45% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

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

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

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

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

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
31.06B	30.27B	24.38B	20.58B	18.41B	11.97B
	Gross Profit
9.22B	8.83B	6.19B	4.71B	2.95B	1.99B
	EBIT
550.00M	436.00M	473.00M	-65.94M	-1.49B	-527.73M
	EBITDA
1.23B	1.05B	1.25B	474.70M	-1.29B	-227.58M
	Net Income Common Stockholders
256.00M	154.00M	1.36B	-92.04M	-1.54B	-474.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.11B	5.88B	5.24B	3.51B	3.49B	1.25B
	Total Assets
15.99B	15.34B	13.35B	9.51B	8.64B	5.07B
	Total Debt
4.08B	3.73B	2.79B	2.40B	2.12B	2.24B
	Net Debt
-2.03B	-2.15B	-2.46B	-1.11B	-1.37B	990.22M
	Total Liabilities
11.59B	11.17B	9.24B	7.10B	6.47B	9.14B
	Stockholders Equity
4.37B	4.10B	4.09B	2.41B	2.18B	-4.07B
Cash Flow		Free Cash Flow
1.01B	1.01B	1.76B	-258.82M	-1.08B	-183.08M
	Operating Cash Flow
2.01B	1.89B	2.65B	565.44M	-410.58M	301.55M
	Investing Cash Flow
-910.56M	-819.00M	-927.00M	-848.25M	-675.52M	-520.65M
	Financing Cash Flow
-103.80M	-69.00M	199.00M	247.35M	3.58B	178.50M

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
BABA	81 Outperform	$287.85B	15.76	13.04%	0.81%	4.28%	28.42%
JD	81 Outperform	$52.86B	8.25	19.81%	2.90%	8.13%	91.39%
MELI	80 Outperform	$121.49B	58.72	49.11%	―	41.92%	81.11%
CPNG	74 Outperform	$51.35B	204.70	6.06%	―	20.88%	-80.08%
PDD	72 Outperform	$142.20B	11.11	36.31%	―	35.04%	22.04%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
GRWG	55 Neutral	$79.72M	―	-36.21%	―	-18.56%	-4.95%

* Consumer Cyclical Sector Average

Performance Comparison

CPNG

Coupang

28.31

6.91

32.29%

MELI

Mercadolibre

2,368.82

786.68

49.72%

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.