COUPANG INC (CPNG)
US22266T1097 - Common Stock
We assign a fundamental rating of 4 out of 10 to CPNG. CPNG was compared to 32 industry peers in the Broadline Retail industry. While CPNG seems to be doing ok healthwise, there are quite some concerns on its profitability. CPNG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CPNG was profitable.
CPNG had a positive operating cash flow in the past year.
CPNG had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: CPNG reported negative operating cash flow in multiple years.
1.2 Ratios
CPNG has a Return On Assets of 6.31%. This is in the better half of the industry: CPNG outperforms 65.63% of its industry peers.
CPNG's Return On Equity of 24.60% is fine compared to the rest of the industry. CPNG outperforms 75.00% of its industry peers.
The Return On Invested Capital of CPNG (3.15%) is worse than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 24.6% | ||
| ROIC | 3.15% |
ROA(3y)-2.88%
ROA(5y)-8.68%
ROE(3y)-13.82%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CPNG's Profit Margin of 3.57% is in line compared to the rest of the industry. CPNG outperforms 59.38% of its industry peers.
CPNG has a Operating Margin of 1.18%. This is in the lower half of the industry: CPNG underperforms 65.63% of its industry peers.
The Gross Margin of CPNG (27.79%) is worse than 81.25% of its industry peers.
CPNG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.18% | ||
| PM (TTM) | 3.57% | ||
| GM | 27.79% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y15.22%
GM growth 5Y37.95%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CPNG is destroying value.
Compared to 1 year ago, CPNG has more shares outstanding
Compared to 5 years ago, CPNG has more shares outstanding
Compared to 1 year ago, CPNG has an improved debt to assets ratio.
2.2 Solvency
CPNG has an Altman-Z score of 3.57. This indicates that CPNG is financially healthy and has little risk of bankruptcy at the moment.
CPNG has a better Altman-Z score (3.57) than 65.63% of its industry peers.
The Debt to FCF ratio of CPNG is 1.73, which is an excellent value as it means it would take CPNG, only 1.73 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CPNG (1.73) is better than 75.00% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that CPNG is not too dependend on debt financing.
CPNG's Debt to Equity ratio of 0.38 is in line compared to the rest of the industry. CPNG outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.73 | ||
| Altman-Z | 3.57 |
ROIC/WACC0.35
WACC9.07%
2.3 Liquidity
CPNG has a Current Ratio of 1.13. This is a normal value and indicates that CPNG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CPNG (1.13) is worse than 78.13% of its industry peers.
CPNG has a Quick Ratio of 1.13. This is a bad value and indicates that CPNG is not financially healthy enough and could expect problems in meeting its short term obligations.
CPNG's Quick ratio of 0.86 is on the low side compared to the rest of the industry. CPNG is outperformed by 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
CPNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.67%.
The Revenue has grown by 24.69% in the past year. This is a very strong growth!
Measured over the past years, CPNG shows a very strong growth in Revenue. The Revenue has been growing by 43.17% on average per year.
EPS 1Y (TTM)-16.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20%
Revenue 1Y (TTM)24.69%
Revenue growth 3Y26.78%
Revenue growth 5Y43.17%
Sales Q2Q%27.21%
3.2 Future
CPNG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.24% yearly.
The Revenue is expected to grow by 14.61% on average over the next years. This is quite good.
EPS Next Y-94.31%
EPS Next 2Y42.1%
EPS Next 3Y46.28%
EPS Next 5Y27.24%
Revenue Next Year26.16%
Revenue Next 2Y21.69%
Revenue Next 3Y19.07%
Revenue Next 5Y14.61%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 114.70 indicates a quite expensive valuation of CPNG.
65.63% of the companies in the same industry are cheaper than CPNG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CPNG to the average of the S&P500 Index (27.73), we can say CPNG is valued expensively.
With a Price/Forward Earnings ratio of 43.69, CPNG can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, CPNG is valued a bit more expensive than the industry average as 65.63% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, CPNG is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.7 | ||
| Fwd PE | 43.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPNG is valued a bit more expensive than 68.75% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CPNG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.82 | ||
| EV/EBITDA | 50.2 |
4.3 Compensation for Growth
CPNG's earnings are expected to grow with 46.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y42.1%
EPS Next 3Y46.28%
5. Dividend
5.1 Amount
CPNG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
COUPANG INC
NYSE:CPNG (12/20/2024, 8:04:00 PM)
After market: 22.98 +0.04 (+0.17%)22.94
+0.21 (+0.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.84%
Inst Owner Change-0.9%
Ins Owners0.8%
Ins Owner Change-3.16%
Market Cap41.27B
Analysts81.82
Price Target29.93 (30.47%)
Short Float %0.94%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)371.73%
Min EPS beat(2)365.19%
Max EPS beat(2)378.26%
EPS beat(4)3
Avg EPS beat(4)190.55%
Min EPS beat(4)-13.24%
Max EPS beat(4)378.26%
EPS beat(8)6
Avg EPS beat(8)100.5%
EPS beat(12)9
Avg EPS beat(12)95.39%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-2.66%
Max Revenue beat(2)-0.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-2.66%
Max Revenue beat(4)0.71%
Revenue beat(8)4
Avg Revenue beat(8)-0.3%
Revenue beat(12)4
Avg Revenue beat(12)-1.32%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.92%
PT rev (3m)11.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-67.06%
EPS NY rev (1m)-34.63%
EPS NY rev (3m)329.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.7 | ||
| Fwd PE | 43.69 | ||
| P/S | 1.43 | ||
| P/FCF | 44.82 | ||
| P/OCF | 22.68 | ||
| P/B | 9.85 | ||
| P/tB | 10.63 | ||
| EV/EBITDA | 50.2 |
EPS(TTM)0.2
EY0.87%
EPS(NY)0.53
Fwd EY2.29%
FCF(TTM)0.51
FCFY2.23%
OCF(TTM)1.01
OCFY4.41%
SpS16.05
BVpS2.33
TBVpS2.16
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 24.6% | ||
| ROCE | 4.17% | ||
| ROIC | 3.15% | ||
| ROICexc | 9.9% | ||
| ROICexgc | 11.16% | ||
| OM | 1.18% | ||
| PM (TTM) | 3.57% | ||
| GM | 27.79% | ||
| FCFM | 3.19% |
ROA(3y)-2.88%
ROA(5y)-8.68%
ROE(3y)-13.82%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y15.22%
GM growth 5Y37.95%
F-Score6
Asset Turnover1.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.73 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 230.32% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 249.12% | ||
| Profit Quality | 89.32% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 3.57 |
F-Score6
WACC9.07%
ROIC/WACC0.35
Cap/Depr(3y)339%
Cap/Depr(5y)340.85%
Cap/Sales(3y)3.78%
Cap/Sales(5y)3.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20%
EPS Next Y-94.31%
EPS Next 2Y42.1%
EPS Next 3Y46.28%
EPS Next 5Y27.24%
Revenue 1Y (TTM)24.69%
Revenue growth 3Y26.78%
Revenue growth 5Y43.17%
Sales Q2Q%27.21%
Revenue Next Year26.16%
Revenue Next 2Y21.69%
Revenue Next 3Y19.07%
Revenue Next 5Y14.61%
EBIT growth 1Y-20.03%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year142.49%
EBIT Next 3Y73.88%
EBIT Next 5Y53.92%
FCF growth 1Y184.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y935.31%
OCF growth 3Y106.4%
OCF growth 5YN/A