COUPANG INC (CPNG) Stock Fundamental Analysis
NYSE:CPNG - New York Stock Exchange, Inc. - US22266T1097 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CPNG. CPNG was compared to 31 industry peers in the Broadline Retail industry. The financial health of CPNG is average, but there are quite some concerns on its profitability. While showing a medium growth rate, CPNG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CPNG had positive earnings in the past year.
In the past year CPNG had a positive cash flow from operations.
In multiple years CPNG reported negative net income over the last 5 years.
Of the past 5 years CPNG 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.60%, CPNG is in line with its industry, outperforming 54.84% of the companies in the same industry.
CPNG has a Return On Equity of 5.86%. This is comparable to the rest of the industry: CPNG outperforms 54.84% of its industry peers.
With a Return On Invested Capital value of 5.28%, CPNG perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 5.86% | ||
| ROIC | 5.28% |
ROA(3y)3.41%
ROA(5y)-3.72%
ROE(3y)11.07%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CPNG has a Profit Margin (0.82%) which is comparable to the rest of the industry.
CPNG has a Operating Margin (1.86%) which is comparable to the rest of the industry.
Looking at the Gross Margin, with a value of 29.68%, CPNG is doing worse than 80.65% of the companies in the same industry.
In the last couple of years the Gross Margin of CPNG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.86% | ||
| PM (TTM) | 0.82% | ||
| GM | 29.68% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y22.09%
GM growth 5Y12.12%
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
The number of shares outstanding for CPNG has been increased compared to 5 years ago.
Compared to 1 year ago, CPNG has a worse debt to assets ratio.
2.2 Solvency
CPNG has an Altman-Z score of 4.41. This indicates that CPNG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CPNG (4.41) is better than 70.97% of its industry peers.
CPNG has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
CPNG has a better Debt to FCF ratio (1.53) than 74.19% of its industry peers.
CPNG has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.36, CPNG is in line with its industry, outperforming 48.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 4.41 |
ROIC/WACC0.5
WACC10.62%
2.3 Liquidity
A Current Ratio of 1.16 indicates that CPNG should not have too much problems paying its short term obligations.
The Current ratio of CPNG (1.16) is worse than 77.42% of its industry peers.
CPNG has a Quick Ratio of 1.16. 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 0.90 is on the low side compared to the rest of the industry. CPNG is outperformed by 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
CPNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.62%.
CPNG shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.88%.
CPNG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.99% yearly.
EPS 1Y (TTM)-34.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20%
Revenue 1Y (TTM)20.88%
Revenue growth 3Y18.03%
Revenue growth 5Y36.99%
Sales Q2Q%11.16%
3.2 Future
CPNG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 52.57% yearly.
Based on estimates for the next years, CPNG will show a quite strong growth in Revenue. The Revenue will grow by 10.20% on average per year.
EPS Next Y88.33%
EPS Next 2Y100.64%
EPS Next 3Y83.03%
EPS Next 5Y52.57%
Revenue Next Year12.84%
Revenue Next 2Y14.13%
Revenue Next 3Y13.12%
Revenue Next 5Y10.2%
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
With a Price/Earnings ratio of 164.06, CPNG can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as CPNG.
Compared to an average S&P500 Price/Earnings ratio of 26.19, CPNG is valued quite expensively.
Based on the Price/Forward Earnings ratio of 43.30, the valuation of CPNG can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CPNG indicates a slightly more expensive valuation: CPNG is more expensive than 64.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, CPNG is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 164.06 | ||
| Fwd PE | 43.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPNG indicates a slightly more expensive valuation: CPNG is more expensive than 61.29% of the companies listed 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 | 49.79 | ||
| EV/EBITDA | 43.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CPNG does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as CPNG's earnings are expected to grow with 83.03% in the coming years.
PEG (NY)1.86
PEG (5Y)N/A
EPS Next 2Y100.64%
EPS Next 3Y83.03%
5. Dividend
5.1 Amount
CPNG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.89
-0.41 (-1.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners62.84%
Inst Owner Change1.87%
Ins Owners0.8%
Ins Owner Change5.75%
Market Cap50.64B
Analysts81.9
Price Target30.26 (8.5%)
Short Float %0.99%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/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)267.36%
Min EPS beat(2)20.05%
Max EPS beat(2)514.67%
EPS beat(4)4
Avg EPS beat(4)319.54%
Min EPS beat(4)20.05%
Max EPS beat(4)514.67%
EPS beat(8)6
Avg EPS beat(8)164.89%
EPS beat(12)10
Avg EPS beat(12)138.65%
EPS beat(16)12
Avg EPS beat(16)105.32%
Revenue beat(2)0
Avg Revenue beat(2)-3.57%
Min Revenue beat(2)-3.82%
Max Revenue beat(2)-3.33%
Revenue beat(4)0
Avg Revenue beat(4)-2.61%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)-0.63%
Revenue beat(8)3
Avg Revenue beat(8)-0.89%
Revenue beat(12)4
Avg Revenue beat(12)-1.27%
Revenue beat(16)4
Avg Revenue beat(16)-1.92%
PT rev (1m)-0.48%
PT rev (3m)2.48%
EPS NQ rev (1m)-7.35%
EPS NQ rev (3m)-47.61%
EPS NY rev (1m)-27.32%
EPS NY rev (3m)-40.15%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 164.06 | ||
| Fwd PE | 43.3 | ||
| P/S | 1.63 | ||
| P/FCF | 49.79 | ||
| P/OCF | 24.97 | ||
| P/B | 11.58 | ||
| P/tB | 12.18 | ||
| EV/EBITDA | 43.9 |
EPS(TTM)0.17
EY0.61%
EPS(NY)0.64
Fwd EY2.31%
FCF(TTM)0.56
FCFY2.01%
OCF(TTM)1.12
OCFY4%
SpS17.11
BVpS2.41
TBVpS2.29
PEG (NY)1.86
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 5.86% | ||
| ROCE | 7.15% | ||
| ROIC | 5.28% | ||
| ROICexc | 18.1% | ||
| ROICexgc | 19.79% | ||
| OM | 1.86% | ||
| PM (TTM) | 0.82% | ||
| GM | 29.68% | ||
| FCFM | 3.27% |
ROA(3y)3.41%
ROA(5y)-3.72%
ROE(3y)11.07%
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 3Y22.09%
GM growth 5Y12.12%
F-Score8
Asset Turnover1.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 219.78% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 195.56% | ||
| Profit Quality | 397.27% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 4.41 |
F-Score8
WACC10.62%
ROIC/WACC0.5
Cap/Depr(3y)295.22%
Cap/Depr(5y)320.02%
Cap/Sales(3y)3.53%
Cap/Sales(5y)3.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-34.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20%
EPS Next Y88.33%
EPS Next 2Y100.64%
EPS Next 3Y83.03%
EPS Next 5Y52.57%
Revenue 1Y (TTM)20.88%
Revenue growth 3Y18.03%
Revenue growth 5Y36.99%
Sales Q2Q%11.16%
Revenue Next Year12.84%
Revenue Next 2Y14.13%
Revenue Next 3Y13.12%
Revenue Next 5Y10.2%
EBIT growth 1Y24.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year310.23%
EBIT Next 3Y95.09%
EBIT Next 5YN/A
FCF growth 1Y130.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y80.81%
OCF growth 3YN/A
OCF growth 5YN/A