Coupang Inc. Scores 70% on Price/Sales Investor Model

Coupang Inc. rates 70% under the Price/Sales Investor model, revealing insights into its fundamentals. Despite passing key metrics, issues in EPS growth and net profit margins raise caution for investors.

Date: 13-03-2025

AI Rating: 5

Coupang Inc. (CPNG) Analysis

Coupang Inc. has received a rating of 70% according to the Price/Sales Investor model, indicating a somewhat positive standing based on its fundamentals and stock valuation. This model emphasizes low price/sales ratios, long-term profit growth, and solid free cash flow.

However, there are several aspects of concern:

Long-Term EPS Growth Rate: The report indicates a failure in achieving satisfactory long-term earnings per share (EPS) growth, suggesting potential limitations in profitability and overall growth prospects.
Three Year Average Net Profit Margin: Similarly, there is a failing grade concerning the company's net profit margin over the last three years, which is critical as it signifies the company's efficiency in converting revenue into actual profit.

The passing metrics include a favorable free cash flow per share and a sound total debt/equity ratio, indicating that the company may maintain some level of financial stability. However, the combination of failing EPS growth and net profit margin metrics could dampen investor confidence in Coupang's potential for strong profitability. These factors may lead to increased scrutiny from investors, potentially affecting its stock price negatively in the short to medium term.

Stocks: CPNG