GICS Sector : Consumer Cyclical
Coupang, Inc.owns and operates in e-commerce business through its mobile applications and Internet websites primarily in South Korea.It operates through two segments, Product Commerce and Growth Initiatives.
Coupang delivered a strong third quarter in 2025, with consolidated revenues reaching $9.3 billion, representing an 18% year-over-year growth. Gross profit margins expanded over 50 basis points to 29.4%, while adjusted EBITDA margins increased 10 basis points to 4.5%. The company's operating income was $162 million, a 50% increase from last year, and adjusted EBITDA was $413 million, up 20% year-over-year. Earnings per share (EPS) came in at $0.05, beating estimates of $0.03664. The company's Product Commerce segment showed robust growth, with net revenues increasing 16% year-over-year to $8 billion.
Publication Date: Nov -06
The Product Commerce segment's growth was driven by increased spending from existing customers, as well as investments in customer experience, such as expanding selection and faster delivery times. The Developing Offerings segment generated $1.3 billion in net revenue, driven by accelerating triple-digit growth in Taiwan. Gaurav Anand, Coupang's CFO, stated that the growth in Product Commerce was driven by "increased spending from existing customers, while investments in the customer experience... contributed to deeper customer spend."
Coupang's focus on creating a "wow experience" for customers is driving growth, with the company investing in automation, logistics, and sustainability. The company is also investing in developing offerings, such as Taiwan, which is expected to become a major growth driver. Coupang's operating cash flow was $2.4 billion, and free cash flow was $1.3 billion over the trailing 12 months.
Coupang's current valuation metrics indicate a P/S Ratio of 1.64 and an EV/EBITDA of 35.69. Analysts estimate next year's revenue growth at 16.7%. The company's guidance for full-year consolidated growth remains at roughly 20% year-over-year in constant currency. With a ROE of 8.71% and an ROIC of 3.43%, Coupang's profitability metrics are relatively modest, but the company's growth prospects and expanding margins are positives.
The company's investments in AI and technology are expected to drive future growth, with Bom Suk Kim stating that AI has been central to operations and is delivering tangible benefits. Coupang's focus on improving service levels and building capabilities to deliver a great customer experience is also expected to drive long-term growth.
Coupang, Inc. (CPNG) Outperforms Broader Market: What You Need to Know
Feb -18
INVESTOR ALERT: Pomerantz Law Firm Reminds Investors with Losses on their Investment in Coupang, Inc. of Class Action Lawsuit and Upcoming Deadlines - CPNG
Feb -17
Portnoy Law Firm Announces Class Action on Behalf of Coupang, Inc. Investors
Feb -17
Pennsylvania Small Businesses Expand into Global Markets With Assist from Coupang
Feb -17
CPNG FINAL DEADLINE ALERT: Hagens Berman Alerts Coupang, Inc. (CPNG) Investors to Feb. 17th Deadline in Securities Class Action Over Data Breach and Alleged Disclosure Delays
Feb -16
Bronstein, Gewirtz & Grossman LLC Urges Coupang, Inc. Investors to Act: Class Action Filed Alleging Investor Harm
Feb -16
Coronation Fund Managers Ltd. Has $160.22 Million Stock Holdings in Coupang, Inc. $CPNG
Feb -15
Could Buying Coupang Stock Today Set You Up for Life?
Feb -15
While the global growth hypothesis is 14.8%, Product Commerce is a mature segment. Thus, a slightly conservative growth rate is applied, considering market saturation and intense competition. However, Coupang's strong logistics and brand loyalty are expected to support a growth rate close to the global hypothesis. The segment's ability to adapt to changing consumer preferences will be crucial.
Developing Offerings is expected to grow faster than the global average hypothesis of 14.8%. This is because it's a newer, less mature segment with significant potential for expansion. The focus on innovation and enhancing customer experience aligns with emerging trends and consumer preferences, suggesting a higher growth trajectory. As Coupang continues to invest in this area, it's likely to see substantial returns.
Coupang's e-commerce platform allows customers to browse and purchase a wide range of products, including fresh food, groceries, electronics, fashion, and more.
Coupang's proprietary logistics network, Rocket Delivery, provides fast and reliable delivery services to customers.
Coupang Eats is a food delivery service that partners with local restaurants to offer a wide range of cuisines to customers.
Coupang Play is a streaming service that offers a variety of TV shows, movies, and original content to subscribers.
Coupang Fresh is a grocery delivery service that offers fresh produce, meat, and dairy products to customers.
Coupang Now is a same-day delivery service that offers fast and convenient delivery of essentials, including groceries and daily necessities.
Coupang's business model is focused on providing fast and convenient delivery, which makes it difficult for substitutes to emerge. However, the rise of social commerce and live streaming shopping could pose a threat to Coupang's business.
Coupang's customers have low bargaining power due to the company's dominant market position and lack of alternative options. However, customers can still switch to other e-commerce platforms if they are not satisfied with Coupang's services.
Coupang's suppliers have moderate bargaining power due to the company's large scale and negotiating power. However, suppliers can still exert some pressure on Coupang by threatening to switch to other e-commerce platforms.
The threat of new entrants is low due to the high barriers to entry in the e-commerce market. New entrants would need to invest heavily in logistics, technology, and marketing to compete with Coupang.
The intensity of rivalry in the e-commerce market is high due to the presence of several established players, including Gmarket and 11th Street. Coupang faces intense competition in terms of pricing, delivery speed, and product offerings.
| Value | |
|---|---|
| Debt Weight | 25.51% |
| Debt Cost | 3.95% |
| Equity Weight | 74.49% |
| Equity Cost | 9.60% |
| WACC | 8.16% |
| Leverage | 34.24% |
Value: 4.9
Growth: 5.8
Quality: 7.5
Yield: 7.5
Momentum: 8.0
Volatility: 10.0
1-Year Total Return ->
Value: 8.1
Growth: 3.6
Quality: 6.5
Yield: 10.0
Momentum: 2.0
Volatility: 6.7
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Value: 4.4
Growth: 7.2
Quality: 5.9
Yield: 0.0
Momentum: 8.5
Volatility: 9.3
1-Year Total Return ->
Value: 0.9
Growth: 8.6
Quality: 5.6
Yield: 0.0
Momentum: 7.5
Volatility: 10.0
1-Year Total Return ->
Value: 2.6
Growth: 7.3
Quality: 5.4
Yield: 3.0
Momentum: 4.5
Volatility: 8.7
1-Year Total Return ->
Value: 5.0
Growth: 6.3
Quality: 4.6
Yield: 2.0
Momentum: 3.5
Volatility: 9.0
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