Coupang: When Will the Market Wake Up?
Another strong q for Coupang. Showing great operating leverage these past few q's from operational efficiencies + good comps vs. a heavy CapEX cycle in 2020/2021.
Dear readers,
Please see below the link for an article I published last night on Seeking Alpha about Coupang’s (largest e-commerce business in South Korea) latest Q1 2023 results. This is one of my highest conviction investment ideas right now and a top 10 position in my personal account.
Coupang: Demonstrating Tremendous Operating Leverage
My main highlights:
I rate Coupang a "strong buy" as the business has continued to post stellar results, all while the share price has remained largely flat and trailed the broader market in 2023.
Coupang has posted 20%+ revenue growth rates (in constant currency) each quarter since its IPO in 2021.
In Q1 2023, Coupang reported an all-time high adjusted EBITDA margin of 4.2%.
Coupang trades on an attractive free cash flow (FCF) yield of 6.6%.
Coupang has a long runway for growth ahead, both in its core e-commerce and grocery delivery businesses, as well as international expansion and adjacent business segments.
https://twitter.com/jordanmartenst1/status/1658370547326279680
Cheers,
Jordan