Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

Coupang(CPNG US) Rating Change: Margin Still Has Upside, Upgrade to BUY

[Coupang Inc. (CPNG US) Earnings Review]: Upsides Ahead in Category and Margin Expansion

Coupang: Revenue & Profits Let Coupang Down, Valuation Is Still at a Significant Premium to Peers

Coupang Earnings Preview: More Room to Fall

Coupang: Just About Halfway in Correction

Coupang: Maverick Capital's Supersized Exposure Is Too Big of a Risk

Coupang: Decelerating Revenue, Sporadic Profitability and Still Expensive

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>South Korea’s largest e-commerce company, <a href="https://www.smartkarma.com/entities/coupang-inc" target="_blank" data-smartkarma-citation="entities:28425:1" rel="noopener">Coupang (CPNG US)</a> is no longer a growth stock with revenue expected to start falling on a YoY basis from 4Q22 onwards.</li>
<li>Therefore, we think Coupang’s current valuation, which is based on inflated revenue estimates should become redundant.</li>
<li>We think a no-growth, low-margin business like Coupang does not deserve to trade north of 10.0x OP, whereas it is currently trading at 15.6x the best-case OP estimate.</li>
</ul>


South Korea’s largest e-commerce company, Coupang (CPNG US) is no longer a growth stock with revenue expected to start falling on a YoY basis from 4Q22 onwards.
Therefore, we think Coupang’s current valuation, which is based on inflated revenue estimates should become redundant.
We think a no-growth, low-margin business like Coupang does not deserve to trade north of 10.0x OP, whereas it is currently trading at 15.6x the best-case OP estimate.


Coupang: Time Ditch EV/Sales and Focus on Profitability-Based Multiples