Coupang, Inc. (CPNG) Stock Analysis
Coupang, Inc. (CPNG) Stock Analysis
Analysis from 10-Q filed 2025-11-04. Data as of Q4 2025.
Overall Grade: F (Concerning)
Coupang, Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 2.5% | Below expectations |
| FCF Margin | 1.5% | Cash flow pressure |
| Debt/Equity | 0.2x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore Coupang, Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Coupang, Inc. earns 2.5% ROIC, Bottom 50% in Consumer Discretionary
Coupang, Inc.'s trailing-twelve-month ROIC of 2.5% ranks Bottom 50% in Consumer Discretionary companies (sector median: 8.8%), driven by NOPAT margin of 0.5% combined with asset turnover of 2.0x. Source: 10-Q filed 2025-11-04. Gross margin of 29.4% with operating margin at 1.4% reflects a competitive pricing environment.
| Metric | CPNG | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 2.5% | Red flag | Below sector median of 8.8% |
| Gross Margin | 29.4% | Adequate | Competitive pricing environment |
| Operating Margin | 1.4% | Warning | Moderate operational efficiency |
Cash Flow: Coupang, Inc. generates $522.0M FCF at 1.5% margin, positive NaN/8 quarters
Coupang, Inc. generated $522.0M in free cash flow (TTM), a 1.5% FCF margin, a margin that ranks Bottom 50% in Consumer Discretionary. Operating cash flow exceeds net income by 8.5x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-04.
| Metric | CPNG | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 1.5% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $522.0M | Good | Positive cash generation |
| OCF/Net Income | 8.5x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Coupang, Inc. at 0.2x leverage
Coupang, Inc.'s debt-to-equity ratio of 0.2x reflects conservative leverage. Net cash position of $5.5B provides financial flexibility. Source: 10-Q filed 2025-11-04.
| Metric | CPNG | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.2x | Excellent | Conservative capital structure |
| Net Cash Position | $5.5B | Excellent | Net cash positive |
Valuation: Coupang, Inc. trades at 214.5x earnings
Coupang, Inc. trades at a P/E of 214.5x. Free cash flow yield of 1.2% reflects market expectations for growth.
| Metric | CPNG | Rating | Context |
|---|---|---|---|
| P/E Ratio | 214.5x | Warning | Premium valuation |
| EV/Sales | 1.1x | Excellent | Attractive revenue multiple |
| FCF Yield | 1.2% | Warning | Lower cash yield |
Capital Allocation: Coupang, Inc. returns 0.0% shareholder yield
Coupang, Inc.'s total shareholder yield is 0.0% (dividends + buybacks). Source: 10-Q filed 2025-11-04.
| Metric | CPNG | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 2.5% | Bottom 50% | 0.3x below |
| Free Cash Flow Margin | 1.5% | Bottom 50% | 0.6x below |
| Gross Margin | 29.4% | Bottom 50% | 0.7x below |
| Operating Margin | 1.4% | Bottom 50% | 0.3x below |
| P/E Ratio | 214.5x | N/A | - |
Financial Scorecard
| Metric | CPNG | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 2.5% | Red flag | Bottom 50% of sector (median: 8.8%) |
| Free Cash Flow Margin | 1.5% | Warning | Bottom 50% of sector (median: 2.7%) |
| Gross Margin | 29.4% | Adequate | Bottom 50% of sector (median: 39.5%) |
| Debt to Equity Ratio | 20.8% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 214.5x | Warning | High expectations priced in |
| Free Cash Flow Yield | 1.2% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is Coupang, Inc.'s Return on Invested Capital (ROIC)?
Coupang, Inc. (CPNG) has a trailing twelve-month Return on Invested Capital (ROIC) of 2.5%. This compares below the sector median of 8.8%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Coupang, Inc.'s Free Cash Flow Margin?
Coupang, Inc. (CPNG) has a free cash flow margin of 1.5%, generating $522.0 million in free cash flow over the trailing twelve months. A thin FCF margin may indicate heavy reinvestment or operational challenges.
Q: Is Coupang, Inc. stock overvalued or undervalued?
Coupang, Inc. (CPNG) trades at a P/E ratio of 214.5x, which is above the sector median of N/A. The EV/Sales multiple is 1.1x. Free cash flow yield is 1.2%, reflecting growth expectations priced into the stock.
Q: What is Coupang, Inc.'s revenue and earnings growth?
Coupang, Inc. (CPNG) grew revenue by 14.1% year-over-year. Earnings per share increased by 37.5% compared to the prior year. Solid growth above 10% suggests healthy business momentum.
Q: Is Coupang, Inc. buying back stock?
Coupang, Inc. (CPNG) repurchased $243.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.6%.
Q: How does Coupang, Inc. compare to competitors in Consumer Discretionary?
Compared to other companies in Consumer Discretionary, Coupang, Inc. (CPNG) shows: ROIC of 2.5% is below the sector median of 8.8% (Bottom 30%). FCF margin of 1.5% trails the sector median of 2.7% (Bottom 38% of sector). Gross margin at 29.4% is 10.2 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.
Q: What warning signs should I watch for with Coupang, Inc.?
Investors in Coupang, Inc. (CPNG) should monitor these potential warning signs: 1) FCF margin is thin at 1.5%, leaving limited buffer for economic downturns. 2) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-04. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.