Over the past three months, Coupang Inc (CPNG, Financial) has experienced a notable uptick in its stock price, with a 15.88% gain, reflecting a positive sentiment among investors. The current market capitalization stands at a robust $34.02 billion, with the stock price at $18.97. This recent performance indicates a 2.53% gain over the past week alone. When compared to the GF Value of $20.55, Coupang is currently deemed to be Fairly Valued, a shift from its previous status of Modestly Undervalued when the GF Value was at $20. This change in valuation suggests that the company's stock price is aligning more closely with its intrinsic value as perceived by the market.
Introduction to Coupang Inc
Coupang Inc, operating within the cyclical retail industry, has established itself as a significant e-commerce player. The company's diverse product range spans across apparel, electronics, food products, and more. Coupang's business model is segmented into Product Commerce, which is the core of its retail and marketplace offerings, and Developing Offerings, which includes fresh grocery and advertising products. The Product Commerce segment is the primary revenue generator for the company. 
Assessing Coupang's Profitability
Coupang's Profitability Rank stands at 4/10, which, while not exceptional, indicates a moderate level of profitability within the industry. The company's Operating Margin of 1.94% is better than 40.04% of its industry peers. More impressively, Coupang's Return on Equity (ROE) is at a substantial 46.05%, outperforming 94.18% of competitors. Similarly, its Return on Assets (ROA) and Return on Invested Capital (ROIC) are at 12.40% and 19.96%, respectively, both surpassing the performance of over 90% of industry peers. However, it's worth noting that Coupang has only achieved profitability in one of the past ten years, which is a lower rate than the majority of its industry counterparts. 
Growth Trajectory of Coupang
The company's Growth Rank is an impressive 9/10, indicating a strong upward trajectory in terms of revenue and profitability. Coupang's 3-Year Revenue Growth Rate per Share stands at 24.50%, which is higher than 86.96% of its industry peers. The 5-Year Revenue Growth Rate per Share is even more remarkable at 41.90%, surpassing 96.42% of competitors. Looking ahead, the estimated Total Revenue Growth Rate for the next three to five years is 13.75%, which is better than 87.97% of industry peers. These figures underscore Coupang's robust growth potential and its ability to scale effectively in the e-commerce space. 
Key Stakeholders in Coupang
Several notable investors have taken significant positions in Coupang. Baillie Gifford (Trades, Portfolio) holds a substantial 166,669,365 shares, accounting for 9.29% of the company's share percentage. Lee Ainslie (Trades, Portfolio) follows with 73,037,344 shares, representing 4.09% of the share percentage. Stanley Druckenmiller (Trades, Portfolio) also has a stake in the company with 22,914,940 shares, equating to 1.28% of the share percentage. The confidence these prominent investors have in Coupang may influence other investors' perceptions and contribute to the stock's performance.
Competitive Landscape
When compared to its competitors, Coupang holds its own in the e-commerce market. Sea Ltd (SE, Financial) has a market cap of $31.83 billion, eBay Inc (EBAY, Financial) is valued at $27.12 billion, and JD.com Inc (JD, Financial) stands at $41.06 billion. Coupang's market cap of $34.02 billion positions it comfortably within this competitive set, suggesting that it has the scale and market presence to compete effectively with these established players.
Conclusion
In summary, Coupang Inc's recent stock performance reflects a positive market sentiment, with the company being fairly valued according to the GF Value. Its profitability metrics, particularly ROE and ROIC, are strong compared to industry peers, although there is room for improvement in its overall Profitability Rank. The company's growth prospects are robust, as evidenced by its high Growth Rank and impressive revenue growth rates. The significant stakes held by major investors like Baillie Gifford (Trades, Portfolio), Lee Ainslie (Trades, Portfolio), and Stanley Druckenmiller (Trades, Portfolio) further bolster confidence in Coupang's future. In comparison to its key competitors, Coupang maintains a competitive market position, which, combined with its growth and profitability, makes it a noteworthy stock for value investors to consider.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
