One-glance verdict
Within fair range
$14.81 our estimate vs market $15.29
Wall Street consensus: $23.66 (59.8% higher than our fair-value estimate)
3% above our estimate
Fundamentals snapshot
Coupang, Inc.
CPNG · NYQ · Consumer Cyclical · Internet Retail
Current price
$15.29
52-week range
$14.92 - $34.08
Market cap
$27.48B
Balance sheet
Healthy
5.50x Adequate
Net cash $477.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 2.7% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Return on equity was -20.0% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -0.5% to -6.3% over 3 years.
What this company does
Coupang, Inc.
Coupang is a massive online retailer, often called the "Amazon of South Korea," that sells everything from fresh groceries to electronics directly to customers through its website and app. The company makes most of its money from these sales and by taking a cut from other sellers using its platform, but it is also spending to grow newer services like food delivery and video streaming. Investors watch to see if these new businesses can become profitable and help the company continue to grow beyond its main retail operations.
How the company got here
Founded in 2010 by Bom Kim, Coupang started as a deals website in South Korea, similar to Groupon. Realizing that fast and reliable delivery was a major customer frustration, the company shifted its focus. A key turning point was the 2014 launch of "Rocket Delivery," which promised delivery by the next morning, a revolutionary concept at the time. This required massive investments in building its own logistics network (the system of warehouses and vehicles to move goods), which was funded in part by major investments from SoftBank. After years of prioritizing growth over profit, the company went public on the New York Stock Exchange in 2021 and has since expanded into new services and countries.
What it actually does
Coupang is often called the "Amazon of South Korea" and operates a massive online retail business, primarily in South Korea and Taiwan. For an everyday shopper, this means you can go on their app or website and buy millions of items, from groceries and electronics to clothes and household goods. The company's defining feature is its own delivery network, which allows for extremely fast shipping, often overnight or even the same day. Beyond just selling products, Coupang also offers services like restaurant food delivery, a video streaming service, and online payment options.
Product Commerce
This is Coupang's main business and generates the vast majority of the company's revenue (the total money it brings in). It includes everything you'd buy from their website or app, such as electronics, fresh groceries through a service called Rocket Fresh, and everyday items. This segment makes money by selling these products directly to customers. It also includes a marketplace where other sellers can list their products, and Coupang earns fees from those sales, as well as revenue from selling advertising to brands that want to be more visible on the site.
Developing Offerings
This segment is a collection of Coupang's newer and growing businesses, representing a smaller but fast-growing slice of the company. It includes Coupang Eats, a food delivery service similar to Uber Eats, and Coupang Play, a video streaming service like Netflix that is bundled with its membership program. This part of the company also includes its expansion into new markets like Taiwan, its fintech (financial technology) services, and its recent acquisition of Farfetch, an online marketplace for luxury fashion. These businesses are currently in an investment phase, meaning they are spending money to grow quickly and are not yet profitable.
What management is betting on now
The company is focused on several key areas for future growth. A major priority is expanding its core online retail business in South Korea by offering an even wider selection of products with fast delivery. Management is also heavily investing in automation and artificial intelligence (AI) within its logistics network to improve efficiency and lower costs. Another big bet is on its newer businesses, particularly growing its presence in Taiwan and successfully integrating the luxury fashion platform Farfetch to attract higher-spending customers. The overall goal is to increase the value of its "WOW" membership program, which bundles services like free shipping and video streaming to keep customers loyal and spending more across its entire platform.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-46.00M
FY2024 Q4
$462.00M
FY2025 Q1
$115.00M
FY2025 Q2
$246.00M
FY2025 Q3
$439.00M
FY2025 Q4
$-278.00M
FY2026 Q1
$-112.00M
FY2026 Q2
$50.00M
Revenue
$8.86B
Net income
$-570.00M
Diluted EPS
-0.32
Operating cash flow
$367.00M
Free cash flow
$50.00M
Fetching…
Sources
Revenue
$8.50B
Net income
$-266.00M
Diluted EPS
-0.15
Operating cash flow
$184.00M
Free cash flow
$-112.00M
Fetching…
Sources
Revenue
$8.84B
Net income
$-26.00M
Diluted EPS
-0.02
Operating cash flow
$82.00M
Free cash flow
$-278.00M
Fetching…
Sources
Revenue
$9.27B
Net income
$95.00M
Diluted EPS
0.05
Operating cash flow
$792.00M
Free cash flow
$439.00M
Fetching…
Sources
Revenue
$8.52B
Net income
$32.00M
Diluted EPS
0.02
Operating cash flow
$545.00M
Free cash flow
$246.00M
Fetching…
Sources
Revenue
$7.91B
Net income
$107.00M
Diluted EPS
0.06
Operating cash flow
$354.00M
Free cash flow
$115.00M
Fetching…
Sources
Revenue
$7.96B
Net income
$156.00M
Diluted EPS
0.08
Operating cash flow
$676.00M
Free cash flow
$462.00M
Fetching…
Sources
Revenue
$7.87B
Net income
$70.00M
Diluted EPS
0.04
Operating cash flow
$334.00M
Free cash flow
$-46.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $14.81 vs current price $15.29
Wall Street consensus is the average analyst price target: $23.66 (59.8% higher than our fair-value estimate).
Our most-likely fair value is $14.81 a share — about 3.2% away from today's price of $15.29, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $477.0M - more cash than debt. Interest coverage 5.5x.
Net debt
$-477.00M
Interest coverage
5.50x
Coupang, Inc.'s profit covers its interest bill about 5.5 times over.
Healthy
Worse cushion
Baseline
Better cushion
CPNG
BASELINE
Coupang, Inc.
Total debt $5.63B Interest coverage 5.50x This is the baseline the peer rows are being compared against.
Total debt $13.21B Interest coverage 20.01x +264% vs CPNG Carries about 3.6x more debt cushion than CPNG.
Total debt $15.69B Interest coverage 1.32x -76% vs CPNG Carries about 4.2x less debt cushion than CPNG.
Total debt $4.13B Interest coverage 59.07x +974% vs CPNG Carries about 10.7x more debt cushion than CPNG.
Total debt $39.72B Interest coverage 6.09x +11% vs CPNG Has roughly the same debt cushion as CPNG.
What you should know
The case for and against CPNG
2 Rewards
3 Risks
Rewards
-
Revenue grew 2.7% last year.
-
Free cash flow was positive in 3/10 years.
Risks
-
Return on equity was -20.0% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -0.5% to -6.3% over 3 years.
-
Insider ownership is only 0.6% (peer median: 1.8%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
56.71x
P/B
9.17x
P/S
0.78x
EV/EBITDA
-587.11x
PEG ratio
1.28x
Profitability
How much profit each dollar creates
Gross margin
28.4%
Operating margin
-6.3%
Net margin
-2.2%
ROE
-20.0%
ROA
-2.1%
Health
Liquidity and balance-sheet strength
Debt / equity
1.89x
Current ratio
0.87x
Quick ratio
0.61x
Total debt
$5.63B
Total cash
$6.11B
Growth
How the business has been compounding
Revenue TTM
$35.46B
Revenue 5Y CAGR
17.0%
EPS TTM
-0.43
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.43B
Free CF TTM
$522.00M
FCF margin
1.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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