Coupang, Inc. – Asia's Leading E-Commerce Pioneer

Brief Summary for Investors: Coupang is South Korea's leading e-commerce group, known for its fast delivery and wide product range. The company has transformed from a loss-making company into a profitable, high-growth player.

Development The share price has been subject to significant fluctuations, closely correlated with its financial performance. Following the IPO in 2021, a sharp downward trend followed due to persistent losses (2021: EPS -1.08 USD) and macroeconomic factors. Consistent revenue growth and the first profitability achieved in 2023 (EPS 0.76 USD) led to a significant share price recovery starting in 2024. The latest quarterly figures show a continuation of this trend with volatile but positive profitability.

Opportunities:

• Profitability path: The significantly improved EBITDA margin and positive free cash flow generation demonstrate operational maturity.
• Growth initiatives: Expansion into new areas such as food delivery (Coupang Eats) and streaming services opens up additional revenue sources.
• Market dominance: Deep roots in the lucrative South Korean market offer further upside potential through cross-selling.

Risks:

• Cyclical sensitivity: As a cyclical consumer goods company, Coupang is vulnerable to a slowdown in the economy and weakening consumer demand.
• Debt: A debt-to-equity ratio of 2.63 indicates a high level of leverage.
• Competitive intensity: The South Korean e-commerce market is highly competitive.

Additional Notes: Recent insider transactions indicate sales by a major shareholder and senior executives. The significance of these sales should be assessed in light of the individual compensation models and should not necessarily be viewed as a negative signal.

Conclusion: Coupang has undergone an impressive transformation from a growth to a profitability model. The fundamentals generally support the recent share price performance. High debt and dependence on a single, highly competitive market remain the biggest challenges to its sustainable valuation.

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