Coupang, Inc. (NYSE:CPNG) Is About To Turn The Corner
Coupang, Inc. (NYSE:CPNG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Coupang, Inc. owns and operates in e-commerce business through its mobile applications and Internet websites primarily in South Korea. The US$26b market-cap company posted a loss in its most recent financial year of US$1.5b and a latest trailing-twelve-month loss of US$599m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Coupang will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Coupang
Consensus from 15 of the American Online Retail analysts is that Coupang is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$366m in 2023. So, the company is predicted to breakeven approximately a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 47% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Coupang's upcoming projects, but, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 33% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Coupang which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Coupang, take a look at Coupang's company page on Simply Wall St. We've also put together a list of key factors you should further research:
Valuation: What is Coupang worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Coupang is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Coupang’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
