COUPANG INC (CPNG) Stock Fundamental Analysis
NYSE:CPNG - New York Stock Exchange, Inc. - US22266T1097 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to CPNG. CPNG was compared to 28 industry peers in the Broadline Retail industry. While CPNG seems to be doing ok healthwise, 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
In the past year CPNG was profitable.
CPNG had a positive operating cash flow in the past year.
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
With a Return On Assets value of 1.60%, CPNG perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
The Return On Equity of CPNG (5.86%) is comparable to the rest of the 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 of 0.82%. This is comparable to the rest of the industry: CPNG outperforms 53.57% of its industry peers.
CPNG has a Operating Margin of 1.86%. This is comparable to the rest of the industry: CPNG outperforms 42.86% of its industry peers.
With a Gross Margin value of 29.68%, CPNG is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
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
CPNG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CPNG has been increased compared to 1 year ago.
Compared to 5 years ago, CPNG has more shares outstanding
CPNG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.49 indicates that CPNG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.49, CPNG is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.53, CPNG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that CPNG is not too dependend on debt financing.
CPNG has a Debt to Equity ratio (0.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 4.49 |
ROIC/WACC0.6
WACC8.78%
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 78.57% 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 has a worse Quick ratio (0.90) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The earnings per share for CPNG have decreased strongly by -34.62% in the last year.
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 54.92% on average per year.
CPNG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.20% yearly.
EPS Next Y89.98%
EPS Next 2Y106.1%
EPS Next 3Y85.14%
EPS Next 5Y54.93%
Revenue Next Year13.84%
Revenue Next 2Y15.01%
Revenue Next 3Y14%
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
Based on the Price/Earnings ratio of 169.06, the valuation of CPNG can be described as expensive.
CPNG's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.82. CPNG is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 42.29, the valuation of CPNG can be described as expensive.
71.43% of the companies in the same industry are cheaper than CPNG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, CPNG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 169.06 | ||
| Fwd PE | 42.29 |
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 67.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CPNG is valued a bit more expensive than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.31 | ||
| EV/EBITDA | 45.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as CPNG's earnings are expected to grow with 85.14% in the coming years.
PEG (NY)1.88
PEG (5Y)N/A
EPS Next 2Y106.1%
EPS Next 3Y85.14%
5. Dividend
5.1 Amount
CPNG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.74
-0.69 (-2.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners63.52%
Inst Owner Change0.05%
Ins Owners0.61%
Ins Owner Change2.1%
Market Cap52.18B
Analysts80.95
Price Target31.61 (9.99%)
Short Float %0.97%
Short Ratio1.27
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)2.12%
PT rev (3m)3.95%
EPS NQ rev (1m)-6.57%
EPS NQ rev (3m)-11.11%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-26.68%
Revenue NQ rev (1m)0.93%
Revenue NQ rev (3m)2.22%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 169.06 | ||
| Fwd PE | 42.29 | ||
| P/S | 1.68 | ||
| P/FCF | 51.31 | ||
| P/OCF | 25.73 | ||
| P/B | 11.94 | ||
| P/tB | 12.55 | ||
| EV/EBITDA | 45.39 |
EPS(TTM)0.17
EY0.59%
EPS(NY)0.68
Fwd EY2.36%
FCF(TTM)0.56
FCFY1.95%
OCF(TTM)1.12
OCFY3.89%
SpS17.11
BVpS2.41
TBVpS2.29
PEG (NY)1.88
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 | 4.49 |
F-Score8
WACC8.78%
ROIC/WACC0.6
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 Y89.98%
EPS Next 2Y106.1%
EPS Next 3Y85.14%
EPS Next 5Y54.93%
Revenue 1Y (TTM)20.88%
Revenue growth 3Y18.03%
Revenue growth 5Y36.99%
Sales Q2Q%11.16%
Revenue Next Year13.84%
Revenue Next 2Y15.01%
Revenue Next 3Y14%
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