CPNG – Market expectations are for Uniform ROA to inflect positively, but management may have concerns about capacity, margins, and demand

March 22, 2022

  • Coupang (CPNG) currently trades at a substantial premium to Uniform assets, with a 12.0x Uniform P/B (V/A’).

  • At these levels, markets are pricing in expectations for Uniform ROA to inflect positively to 39%, accompanied by 12% Uniform asset growth.

  • However, analysts expect Uniform ROA to maintain negative levels through 2023, accompanied by 27% Uniform asset growth.

  • If sustained going forward, these levels would imply a significant equity downside for the firm. That said, as an early-stage growth name, it is not uncommon to see expectations for a material positive inflection in profitability.

  • Moreover, the firm’s most recent earnings call suggests management may have concerns about capacity, margins, and demand.

You don’t have access to the Valens Research Premium Application.

To get access to our best content including the highly regarded Conviction Long List and Market Phase Cycle macro newsletter, please contact our Client Relations Team at 630-841-0683 or email

Please fill out the fields below so that our client relations team can contact you

Or contact our Client Relationship Team at 630-841-0683