The major market indexes were already under pressure, with the S&P 500 and the Nasdaq Composite slumping 0.6% and 1.1%, respectively. The catalyst that sent the South Korean e-commerce platform plunging even further was a rumor that the company will be issuing additional shares. However, even if the rumor turns out to be true, the sell-off is wildly overdone. 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. 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.

So the increase in accounts payable, a proxy for short-term borrowing to increase inventory, could be viewed as a positive or negative. Either way, positive GAAP net income is a big turning point for the company. Founded in 1993, The Motley Fool is a financial services company https://www.forex-world.net/ dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.

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

The company missed slightly on the last report, but with the Christmas holiday at hand, this could be a beat quarter. The company has grown revenue from 2019 until current at a nearly 30% compound annual growth rate. While a low price to sales is less impressive in a commerce business than it is in a software business like Uber, it is a marker of value. Additionally, Coupang has turned GAAP profitable, while the pinpoint I put on Uber was a tad early at an adjusted EBITDA positive marker.

Every assumption is based on numbers, statistics, and my knowledge about Asia. 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. 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.

There are currently 2 hold ratings and 2 buy ratings for the stock. The consensus among Wall Street analysts is that investors should “moderate buy” CPNG shares. Coupang, Inc., together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments. It also performs operations and support services in the United States, South Korea, Taiwan, Singapore, China, Japan, and India. Coupang, Inc. was incorporated in 2010 and is headquartered in Seattle, Washington.

E-commerce giant Coupang to buy online luxury firm Farfetch

(CPNG) raised $3.4 billion in an initial public offering 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

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. However, the returns it is seeing from investments in its core business might earn management the benefit of the doubt.

1. And for Coupang to still be increasing its active customers to 21 million, goes to the heart of the bear case that long ago argued that Coupang had already saturated its market penetration in South Korea.
2. The company has quickly become one of the largest employers in South Korea, a country with a few well-established behemoths.
3. The ongoing investments in developing offerings, particularly in Taiwan, contribute to incremental losses in adjusted EBITDA (we’ll soon discuss further).
4. Overall, this quarter’s results seemed fairly positive, and shareholders should feel optimistic about the company’s direction.
5. As Coupang sells both discretionary and non-discretionary items, inflation may actually assist revenue growth in their consumer staples sales.
6. Through his writing and research, he reviewed which fundamental premise was most indicative of value and support levels for a stock.

Investors who bought $1,000 worth of Coupang’s shares at the IPO in March 2021 would now be looking at an investment worth $367.55. Coupang’s shares are somewhat volatile and over the last year have https://www.dowjonesanalysis.com/ had 10 moves greater than 5%. But moves this big are very rare even for Coupang and that is indicating to us that this news had a significant impact on the market’s perception of the business.

Farfetch Rushes To Finalize Sale To Coupang

There’s a lot to like about Coupang’s recent progress in underlying profitability. Moreover, the competitive landscape is intensifying, with increased interest in cross-border e-commerce platforms, particularly from Chinese competitors. This heightened competition poses potential risks to user attrition and basket sizes. 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.

Sales & Book Value

This is also what I noted in both articles regarding James O’Shaughnessy and the price-to-sales ratio. The company is scheduled to release its next quarterly earnings announcement on Tuesday, May 14th 2024. Click the link below and we’ll send you MarketBeat’s guide to investing https://www.investorynews.com/ in electric vehicle technologies (EV) and which EV stocks show the most promise. 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.

The wider one shows that Coupang’s core, Product Commerce, segment saw its underlying profitability increase by nearly 2% points y/y from approximately 5.1% to 7.1%. This led to its underlying profitability, increasing its EBITDA by 67% y/y. 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.

Overall, this quarter’s results seemed fairly positive, and shareholders should feel optimistic about the company’s direction. Low growth expectations can set up a stock to soar when a company’s financial results are better than expected. The company reported its fourth consecutive quarter of accelerating revenue growth, driven by a 16% year-over-year increase in active customers. 4 Wall Street analysts have issued “buy,” “hold,” and “sell” ratings for Coupang in the last twelve months.

Eventually, this company looks destined to operate worldwide. Coupang’s stock was trading at $16.19 at the beginning of the year. Since then, CPNG stock has increased by 14.3% and is now trading at $18.50. I follow countless companies and select for you the most attractive investments. I do all the work of picking the most attractive stocks.