2 reasons to observe CPNG and 1 to stay careful

The Coupang shareholders have been a bottleneck in the past six months. The company's share price has increased by 40.7%, which corresponds to a new 52-week high of USD 31.23 per share. With this performance, investors may be wondering how they can approach the situation.

Is CPNG a purchase at the moment after the strength? Or does the market overestimate its value? It is free of charge in our full research report.

Coupang (NYSE: CPNG) was founded in 2010 by the Harvard Business School student Bom Kim.

As an online retailer, Coupang achieves sales growth by expanding its number of users and the average order size in dollars.

In the past two years, the active customers of Coupang, an important performance metric for the company, have increased by 11.9% to 23.6 million in the last quarter. This growth rate is strong for an internet business for consumers and indicates that people love to use their offers.

The analysis of the change in the profit per share (EPS) shows whether the incremental turnover of a company was profitable – for example, sales could be inflated by excessive expenses for advertising and advertising campaigns.

Coupang's EPS of the entire year has been negative too positive in the past three years. This is a good sign and shows that it is at a turning point.

For online single -trade shops (separately from online marketplaces) and Coupang, the gross profit shows how much money the company can generally include the costs for the purchase of the products, shipping and fulfillment, customer service and digital infrastructure sold after covering the basic costs of its products and services.

The Unit Economics from Coupang is far below other Internet companies for consumers because it has to wear inventory as an online retailer. This means that it has a relatively higher capital intensity than a pure software company like Meta or Airbnb and signals that it works in a competitive market. As you can see below, it has achieved a gross parade of 28% on average in the past two years. In other words, Coupang had to pay his service provider for every turnover of $ 100 to his service provider a chunky 71.96 US dollar.

Coupang's merits for his defects are more than compensated for, and after the latest rally, the shares act with 32.2 × Forward EV/EBITDA (or $ 31.23 per share). Is now a good time to buy despite the apparent foam? Convince yourself in our detailed research report, it is free of charge.