Coupang Q4 Earnings: Shares Pop As Investors Finally Start To Pay Attention CPNG


Based on an average daily trading volume, of 10,800,000 shares, the short-interest ratio is presently 2.2 days. Approximately 2.1% of the shares of the stock are short sold. Coupang’s stock was trading at $16.19 at the start of the year. Since then, CPNG shares have increased by 8.5% and is now trading at $17.57.

Primarily operating in Korea and Taiwan, Coupang has expanded its offerings beyond product commerce to include services like Rocket delivery. According to the issued ratings of 4 analysts in the last year, the consensus rating for Coupang stock is Moderate Buy based on the current 2 hold ratings and 2 buy ratings for CPNG. The average twelve-month price prediction for Coupang is $21.07 with a high price target of $25.00 and a low price target of $17.00. The company has grown revenue from 2019 until current at a nearly 30% compound annual growth rate. Coupang’s Q4 was up against the easiest comparable quarter of the prior year.

  1. Coupang has reported strong financial results for the third quarter of 2023.
  2. “In the original edition of ‘What works on Wall Street’, O’Shaughnessy wrote that the single-best value factor was a company’s price-to-sales ratio (P/S).
  3. It also performs operations and support services in the United States, South Korea, Taiwan, Singapore, China, Japan, and India.
  4. I do all the work of picking the most attractive stocks.
  5. Coupang is a South Korean e-commerce player known for its innovative approach to customer experience and delivery services.
  6. The company issued 120,000,000 shares at $27.00-$30.00 per share.

Retail sales make up 87.8% of revenue sources, with 12.2% coming from the other offerings the company has. The company states on its website that they are working with teams in Seattle, Mountain View, Shanghai, Beijing, Singapore, and Seoul in tech development. Eventually, this company looks destined to operate worldwide. Farfetch Holdings, the online luxury marketplace and technology platform, reached the precipice of insolvency in the third quarter. A last-minute $500 million bridge loan from the $21 billion South Ko… Altogether, I estimate that looking ahead to the next twelve months, Coupang’s core segment could grow its EBITDA by 45% y/y, down from the 67% y/y run-rate it delivered in Q4.

The positive aspects undoubtedly point to its steady and reassuring growth rates. What’s more, the next several quarters don’t appear to be too challenging compared with the prior year’s quarters, meaning that Coupang should easily be able to sustain a mid-10s% percent CAGR for a while. The ongoing investments in developing offerings, particularly in Taiwan, contribute to incremental losses in adjusted EBITDA (we’ll soon discuss further). In the near term, Coupang has demonstrated an impressive y/y increase in active customers each quarter of the year, with a solid 16% y/y increase in active customers in Q4. Another great-looking balance sheet that is relatively light on debt. The company has both current assets, cash and short-term equivalents well ahead of long-term debt.

Growth Stock Down 70% You’ll Wish You’d Bought at Today’s Near-All-Time-Low Valuation

Although, to be clear, this stock hasn’t been viewed by investors as a growth stock for some time, and therefore, hasn’t been priced as a growth stock. The company seems to be mimicking all the positive portions of industry leaders in e-commerce, including food delivery services and streaming. The company has quickly become one of the largest employers in South Korea, a country with a few well-established behemoths. This is also a founder-run company by a Billionaire, for which studies would tell you that this is a positive omen.

I follow countless companies and select for you the most attractive investments. I do all the work of picking the most attractive stocks. My Marketplace highlights a portfolio of undervalued investment opportunities – stocks with rapid growth potential, driven by top quality management, while these stocks are cheaply valued. The company’s robust growth, evidenced by a continual rise in active customers to an impressive 21 million, challenges skeptics who argue market saturation. Therefore, I believe that approximately $2.3 billion of EBITDA could be on the cards for Coupang’s core segment in 2024. This would leave the business priced at 14x forward EBITDA.

Coupang to Announce Fourth Quarter 2023 Results on February 27, 2024

Coupang (CPNG) raised $3.4 billion in an initial public offering (IPO) on Thursday, March 11th 2021. The company issued 120,000,000 shares at $27.00-$30.00 per share. Goldman Sachs, Allen & Co., J.P.Morgan and Citigroup served as the underwriters for the IPO and HSBC, Deutsche Bank Securities, UBS Investment Bank, Mizuho Securities and CLSA were co-managers. Michael Wiggins De Oliveira is an inflection investor.

This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year. This shows that its nascent businesses, termed Developing Offerings, actually increased their losses by a significant amount. And this is detracting from Coupang’s overall profitability. Immediately, what you’ll notice is the 50 basis point expansion in underlying profitability. But what if I told you that Coupang’s core profitability is actually clipping much higher than this, but this profitability is being masked by its “Other Projects”, named Developing Offerings?

The consensus among Wall Street research analysts is that investors should “moderate buy” CPNG shares. Looking ahead to 2024, I anticipate sustaining a mid-10s% compound annual growth rate. Despite challenges like ongoing investments in Developing Offerings and increased competition, the underlying profitability of Coupang’s core business displays promise. Coupang is a South Korean e-commerce player known for its innovative approach to customer experience and delivery services.

U.K.-based Farfetch FTCH Holdings is to be acquired by South Korean Coupang Inc. in a deal that will give Farfetch access to $500 million of emergency capital. LONDON–(BUSINESS WIRE)–The 2027 Ad Hoc Group (the Group), holding trading strategies for succeeding in cfd market over 50% of Farfetch’s 3.75% Convertible Senior Notes due 2027 and formed to explore options over the proposed acquisition of Farfet… The legendary investor has made a big bet on this disruptive e-commerce player.

CPNG Stock Valuation – 14x EBITDA For Core Business

Coupang has faced increasing scrutiny after several of its employees died from what local labor advocates and politicians blamed on poor work conditions. According to the South Korean Public Service and Transport Workers union, at least eight warehouse and transportation employees at the company died from overwork over the past year. The company is generating $150 million in interest and investment income rather than having to worry about interest payments. This is also what I noted in both articles regarding James O’Shaughnessy and the price-to-sales ratio.

The largest item that stands out on the cash flow statement is the larger than normal increase in accounts payable and a positive starting net income of $429 million. So the increase in accounts payable, a proxy for short-term borrowing to increase inventory, could be viewed as a positive or negative. It increases the cash flow, which could be a phantom trickle down in the interim to free cash flow, or it could represent a large expected increase in demand that will continue to reflect in revenue growth. Either way, positive GAAP net income is a big turning point for the company. Coupang, Inc., together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea.

Upcoming earnings

CEO Bom Kim still maintains the company is laser-focused on their own domestic market, which he believes has a TAM of over $500 Billion itself. From only 5% pre-IPO to 25% at current, the company is becoming ever more profitable with ever-increasing automation. After a roller coaster year of surprises, including a November decision to withhold its earnings results for the third quarter of 2023 and the cancellation of its planned conference call, Farfetch has… SEATTLE & LONDON–(BUSINESS WIRE)–Coupang, Inc. announced today that it has completed the acquisition of the assets of global online luxury company Farfetch Holdings plc. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Coupang is the rare high-growth growth business that is also profitable and generating cash.

The company is now slightly GAAP profitable but also has a healthy free cash flow yield. This was the same thesis I used in my article on Block Inc. (SQ) and Uber. Head on the left, propped up with my feet on the ground. Much better than doing a headstand on a parabola from a risk perspective. Anything off this much from the all-time highs deserves a closer look, especially when revenue and earnings metrics are growing while the price is on the downtrend.


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