COUPANG INC (CPNG) Stock Fundamental Analysis
NYSE:CPNG - New York Stock Exchange, Inc. - US22266T1097 - Common Stock - Currency: USD
Overall CPNG gets a fundamental rating of 4 out of 10. We evaluated CPNG against 31 industry peers in the Broadline Retail industry. CPNG scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CPNG is valied quite expensively at the moment, while it does show a decent growth rate.
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.
The reported net income has been mixed in the past 5 years: CPNG reported negative net income in multiple years.
Of the past 5 years CPNG 4 years had a positive operating cash flow.
1.2 Ratios
CPNG has a Return On Assets (1.60%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.86%, CPNG is in line with its industry, outperforming 54.84% of the companies in the same industry.
CPNG has a Return On Invested Capital (5.28%) which is in line with its industry peers.
| 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 in line with its industry peers.
CPNG has a worse Gross Margin (29.68%) than 80.65% of its industry peers.
CPNG's Gross Margin has improved in the last couple of years.
| 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.
The debt/assets ratio for CPNG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.37 indicates that CPNG is not in any danger for bankruptcy at the moment.
CPNG has a better Altman-Z score (4.37) than 74.19% 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's Debt to FCF ratio of 1.53 is fine compared to the rest of the industry. CPNG outperforms 74.19% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that CPNG is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.36, CPNG perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 4.37 |
ROIC/WACC0.51
WACC10.34%
2.3 Liquidity
CPNG has a Current Ratio of 1.16. This is a normal value and indicates that CPNG is financially healthy and should not expect problems in meeting its short term obligations.
CPNG has a worse Current ratio (1.16) 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.
The Quick ratio of CPNG (0.90) is worse than 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%.
The Revenue has grown by 20.88% in the past year. This is a very strong growth!
The Revenue has been growing by 36.99% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, CPNG will show a very strong growth in Earnings Per Share. The EPS will grow by 52.57% on average per year.
The Revenue is expected to grow by 10.20% on average over the next years. This is quite good.
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
A Price/Earnings ratio of 167.35 indicates a quite expensive valuation of CPNG.
Compared to the rest of the industry, the Price/Earnings ratio of CPNG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.35, CPNG is valued quite expensively.
The Price/Forward Earnings ratio is 44.17, which means the current valuation is very expensive for CPNG.
67.74% of the companies in the same industry are cheaper than CPNG, based on the Price/Forward Earnings ratio.
CPNG is valuated expensively when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 167.35 | ||
| Fwd PE | 44.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPNG is valued a bit more expensive than 67.74% 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 | 50.79 | ||
| EV/EBITDA | 43.13 |
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.
CPNG's earnings are expected to grow with 83.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.89
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 |
28.45
+1 (+3.64%)
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 Cap51.65B
Analysts81.9
Price Target30.26 (6.36%)
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 | 167.35 | ||
| Fwd PE | 44.17 | ||
| P/S | 1.66 | ||
| P/FCF | 50.79 | ||
| P/OCF | 25.47 | ||
| P/B | 11.81 | ||
| P/tB | 12.43 | ||
| EV/EBITDA | 43.13 |
EPS(TTM)0.17
EY0.6%
EPS(NY)0.64
Fwd EY2.26%
FCF(TTM)0.56
FCFY1.97%
OCF(TTM)1.12
OCFY3.93%
SpS17.11
BVpS2.41
TBVpS2.29
PEG (NY)1.89
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 | 4.37 |
F-Score8
WACC10.34%
ROIC/WACC0.51
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