COUPANG INC (CPNG)
US22266T1097 - Common Stock
Overall CPNG gets a fundamental rating of 4 out of 10. We evaluated CPNG against 34 industry peers in the Broadline Retail industry. CPNG has only an average score on both its financial health and profitability. CPNG shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
CPNG had positive earnings in the past year.
CPNG had a positive operating cash flow in the past year.
In the past 5 years CPNG reported 4 times negative net income.
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
Looking at the Return On Assets, with a value of 10.19%, CPNG belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
CPNG has a Return On Equity of 33.26%. This is amongst the best in the industry. CPNG outperforms 93.94% of its industry peers.
CPNG has a Return On Invested Capital of 5.59%. This is comparable to the rest of the industry: CPNG outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.19% | ||
| ROE | 33.26% | ||
| ROIC | 5.59% |
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 5.58% is fine compared to the rest of the industry. CPNG outperforms 72.73% of its industry peers.
Looking at the Operating Margin, with a value of 1.94%, CPNG is in line with its industry, outperforming 42.42% of the companies in the same industry.
Looking at the Gross Margin, with a value of 25.39%, CPNG is doing worse than 81.82% 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 | 1.94% | ||
| PM (TTM) | 5.58% | ||
| GM | 25.39% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CPNG is destroying value.
CPNG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CPNG has been increased compared to 5 years ago.
The debt/assets ratio for CPNG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.18 indicates that CPNG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.18, CPNG is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
The Debt to FCF ratio of CPNG is 0.58, which is an excellent value as it means it would take CPNG, only 0.58 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.58, CPNG belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
CPNG has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.20, CPNG is in line with its industry, outperforming 57.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 4.18 |
ROIC/WACC0.56
WACC9.93%
2.3 Liquidity
A Current Ratio of 1.14 indicates that CPNG should not have too much problems paying its short term obligations.
CPNG's Current ratio of 1.14 is on the low side compared to the rest of the industry. CPNG is outperformed by 78.79% of its industry peers.
CPNG has a Quick Ratio of 1.14. This is a bad value and indicates that CPNG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CPNG (0.90) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 620.00% over the past year.
CPNG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.46%.
CPNG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 43.17% yearly.
EPS 1Y (TTM)620%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q33.33%
Revenue 1Y (TTM)18.46%
Revenue growth 3Y26.78%
Revenue growth 5Y43.17%
Revenue growth Q2Q23.17%
3.2 Future
The Earnings Per Share is expected to grow by 55.69% on average over the next years. This is a very strong growth
Based on estimates for the next years, CPNG will show a quite strong growth in Revenue. The Revenue will grow by 10.45% on average per year.
EPS Next Y7.02%
EPS Next 2Y51.09%
EPS Next 3Y55.69%
EPS Next 5YN/A
Revenue Next Year19.18%
Revenue Next 2Y17.5%
Revenue Next 3Y16.56%
Revenue Next 5Y10.45%
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
The Price/Earnings ratio is 86.38, which means the current valuation is very expensive for CPNG.
The rest of the industry has a similar Price/Earnings ratio as CPNG.
CPNG is valuated expensively when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.
CPNG is valuated quite expensively with a Price/Forward Earnings ratio of 80.72.
CPNG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CPNG is more expensive than 66.67% of the companies in the same industry.
CPNG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.38 | ||
| Fwd PE | 80.72 |
4.2 Price Multiples
CPNG's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CPNG is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.94 | ||
| EV/EBITDA | 47.82 |
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 55.69% in the coming years.
PEG (NY)12.3
PEG (5Y)N/A
EPS Next 2Y51.09%
EPS Next 3Y55.69%
5. Dividend
5.1 Amount
CPNG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
COUPANG INC
NYSE:CPNG (4/22/2024, 7:04:00 PM)
After market: 22.51 +0.05 (+0.22%)22.46
+0.45 (+2.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.38 | ||
| Fwd PE | 80.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)12.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.19% | ||
| ROE | 33.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.94% | ||
| PM (TTM) | 5.58% | ||
| GM | 25.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)620%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y7.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.46%
Revenue growth 3Y26.78%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y