Coupang logged a 2.4% change during today's afternoon session, and is now trading at a price of $16.32 per share.
Coupang returned losses of -7.8% last year, with its stock price reaching a high of $19.99 and a low of $12.66. Over the same period, the stock underperformed the S&P 500 index by -24.0%. As of April 2023, the company's 50-day average price was $16.54. Coupang, Inc., together with its subsidiaries owns and operates in e-commerce business through its mobile applications and Internet websites primarily in South Korea. Based in Seattle, WA, the large-cap Consumer Discretionary company has 63,000 full time employees. Coupang has not offered a dividend during the last year.
Growing Revenues With Increasing Reinvestment in the Business:
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Revenue (MM) | $6,273 | $11,967 | $18,406 | $20,583 | $23,149 |
| Revenue Growth | n/a | 90.77% | 53.81% | 11.82% | 12.47% |
| Operating Margins | -10% | -4% | -8% | 0% | 2% |
| Net Margins | -11% | -4% | -8% | 0% | 2% |
| Net Income (MM) | -$697 | -$463 | -$1,543 | -$92 | $429 |
| Net Interest Expense (MM) | $97 | $150 | $45 | $27 | $42 |
| Depreciation & Amort. (MM) | $71 | $128 | $201 | $231 | $255 |
| Earnings Per Share | -$39.48 | -$19.16 | -$1.08 | -$0.05 | $0.24 |
| EPS Growth | n/a | 51.47% | 94.36% | 95.37% | 580.0% |
| Diluted Shares (MM) | 19 | 29 | 1,424 | 1,765 | 1,857 |
| Free Cash Flow (MM) | -$530 | -$183 | -$1,084 | -$259 | $1,840 |
| Capital Expenditures (MM) | $218 | $485 | $674 | $824 | $783 |
Coupang has growing revenues and increasing reinvestment in the business, low leverage, and positive EPS growth. However, the firm has consistently negative margins with a stable trend. Finally, we note that Coupang has negative cash flows.
The Market May Be Overvaluing Coupang's Earnings and Assets:
Coupang has a trailing twelve month P/E ratio of 68.9, compared to an average of 22.96 for the Consumer Discretionary sector. Based on its EPS guidance of $0.44, the company has a forward P/E ratio of 37.6. The 0.2% compound average growth rate of Coupang's historical and projected earnings per share yields a PEG ratio of 372.73. This suggests that these shares are overvalued. Furthermore, Coupang is likely overvalued compared to the book value of its equity, since its P/B ratio of 9.95 is higher than the sector average of 4.24. The company's shares are currently trading 459.1% above their Graham number.
Analysts Give Coupang an Average Rating of Buy:
The 16 analysts following Coupang have set target prices ranging from $11.6 to $30.0 per share, for an average of $21.36 with a buy rating. As of April 2023, the company is trading -22.6% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Coupang has a very low short interest because 1.6% of the company's shares are sold short. Institutions own 80.0% of the company's shares, and the insider ownership rate stands at 0.82%, suggesting a small amount of insider investors. The largest shareholder is SB Investment Advisers (UK) LTD, whose 26% stake in the company is worth $6,957,003,767.
