Coupang: Next-Gen Walmart

May 15, 2025 3:35 PM ETCoupang, Inc. (CPNG) StockCPNG11 Comments

Summary

  • In this review of Coupang, we will consider the nature of the business, and, in doing so, better understand its cash flow durability, which is important in understanding its valuation.
  • We will then consider the business' recent performance and growth runway, long-term margin expansion opportunity, and perform a valuation exercise.
  • In my view, the market continues to wholesale reject the possibility of margin expansion, new product launches, new geographies, and new acquisitions. As such, I believe Coupang is undervalued today, and, over time, the market will come to appreciate the substantial economic content latent within the Coupang business.
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Delivery boxes of Coupang largest Korean online marketplace retailer in Seoul, South Korea

Mirko Kuzmanovic

Understanding Coupang

Coupang (NYSE:CPNG), as well as all the other e-commerce businesses that I cover, is best understood as the modern incarnation of Walmart (WMT), but with far more durable, subscription-driven cash flows alongside a superior consumer experience.

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This article was written by

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Louis Stevens is a former U.S. Army engineer officer who holds an MBA and a BA in political science. Since beginning his journey publishing investment research, Louis has become one of the leading analysts in the investing community, ranking in the top .1% according to TipRanks.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of CPNG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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