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COUP

Coupa SoftwareNasdaqGS:COUP Stock Report

Last Price

US$127.30

Market Cap

US$9.5b

7D

-8.0%

1Y

-62.8%

Updated

21 Jan, 2022

Data

Company Financials +
COUP fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance0/6
Financial Health2/6
Dividends0/6

COUP Stock Overview

Coupa Software Incorporated provides cloud-based business spend management platform.

Coupa Software Competitors

Workday

NasdaqGS:WDAY

US$62.9b

Paycom Software

NYSE:PAYC

US$19.0b

Bill.com Holdings

NYSE:BILL

US$17.4b

Nuance Communications

NasdaqGS:NUAN

US$17.4b

Price History & Performance

Summary of all time highs, changes and price drops for Coupa Software
Historical stock prices
Current Share PriceUS$127.30
52 Week HighUS$377.04
52 Week LowUS$126.83
Beta1.36
1 Month Change-19.09%
3 Month Change-48.24%
1 Year Change-62.77%
3 Year Change58.26%
5 Year Change382.75%
Change since IPO282.51%

Recent News & Updates

Jan 21

Coupa: This Selloff Is Far Overdone

Shares of Coupa have sunk 60% over the past year and 20% since the start of January alone. The company remains the category leader in B2B procurement software, and continued ~40% y/y growth illustrates the enormity of the company's TAM. With positive pro forma operating income, Coupa is also a member of the vaunted Rule of 40 club. The stock trades at ~12x forward revenue, the cheapest at which Coupa has traded in recent memory.

Dec 29
Is Coupa Software (NASDAQ:COUP) Using Too Much Debt?

Is Coupa Software (NASDAQ:COUP) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Dec 21

Coupa Software: Investor Panic Brings A Generational Opportunity

After a massive correction, Coupa's stock has become very reasonable, and I believe this is an opportune time for a long-term investment. Despite the bearish price action, Coupa's business fundamentals remain strong as evidenced by Q3 2021 earnings. Coupa's intrinsic value is ~$220 per share, i.e., it is undervalued by ~30%. Since Coupa's ten-year expected CAGR returns of ~19.2% beat my hurdle rate, I rate it a buy.

Shareholder Returns

COUPUS SoftwareUS Market
7D-8.0%-2.1%-4.0%
1Y-62.8%9.6%6.6%

Return vs Industry: COUP underperformed the US Software industry which returned 9.6% over the past year.

Return vs Market: COUP underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is COUP's price volatile compared to industry and market?
COUP volatility
COUP Average Weekly Movement7.4%
Software Industry Average Movement8.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: COUP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: COUP's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20062,615Rob Bernshteynhttps://www.coupa.com

Coupa Software Incorporated provides cloud-based business spend management platform. Its platform connects organizations with suppliers globally; and provides visibility into and control over how companies spend money, optimize supply chains, and manage liquidity, as well as enables businesses to achieve savings that drive profitability. The company’s platform consists of procurement, invoicing, expense management, and payment modules that form the transactional engine for managing a company’s business spend; and offers specialized modules, including strategic sourcing, contract management, contingent workforce, supplier risk management, supply chain design and planning, treasury management, and spend analysis.

Coupa Software Fundamentals Summary

How do Coupa Software's earnings and revenue compare to its market cap?
COUP fundamental statistics
Market CapUS$9.51b
Earnings (TTM)-US$344.41m
Revenue (TTM)US$695.54m

13.7x

P/S Ratio

-27.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
COUP income statement (TTM)
RevenueUS$695.54m
Cost of RevenueUS$316.20m
Gross ProfitUS$379.33m
ExpensesUS$723.75m
Earnings-US$344.41m

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-4.61
Gross Margin54.54%
Net Profit Margin-49.52%
Debt/Equity Ratio168.4%

How did COUP perform over the long term?

See historical performance and comparison

Valuation

Is Coupa Software undervalued compared to its fair value and its price relative to the market?

16.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COUP ($127.3) is trading below our estimate of fair value ($152.68)

Significantly Below Fair Value: COUP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: COUP is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

PE vs Market: COUP is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate COUP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: COUP is overvalued based on its PB Ratio (10.2x) compared to the US Software industry average (4.9x).


Future Growth

How is Coupa Software forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COUP is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: COUP is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: COUP is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: COUP's revenue (21.8% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: COUP's revenue (21.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COUP's Return on Equity is forecast to be low in 3 years time (13.5%).


Past Performance

How has Coupa Software performed over the past 5 years?

-48.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COUP is currently unprofitable.

Growing Profit Margin: COUP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: COUP is unprofitable, and losses have increased over the past 5 years at a rate of 48.1% per year.

Accelerating Growth: Unable to compare COUP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: COUP is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.5%).


Return on Equity

High ROE: COUP has a negative Return on Equity (-35.73%), as it is currently unprofitable.


Financial Health

How is Coupa Software's financial position?


Financial Position Analysis

Short Term Liabilities: COUP's short term assets ($898.3M) do not cover its short term liabilities ($1.1B).

Long Term Liabilities: COUP's short term assets ($898.3M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: COUP's net debt to equity ratio (97.5%) is considered high.

Reducing Debt: Insufficient data to determine if COUP's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable COUP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: COUP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 56.3% per year.


Dividend

What is Coupa Software current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate COUP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate COUP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if COUP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if COUP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of COUP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Rob Bernshteyn (48 yo)

12.92yrs

Tenure

US$16,078,822

Compensation

Mr. Robert Bernshteyn, also known as Rob, has been the Chief Executive Officer and Chairman of The Board of Coupa Software Incorporated since February 2009. Mr. Bernshteyn serves as a Member of Advisory Bo...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD16.08M) is above average for companies of similar size in the US market ($USD6.45M).

Compensation vs Earnings: Rob's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: COUP's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: COUP's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Company Information

Coupa Software Incorporated's employee growth, exchange listings and data sources


Key Information

  • Name: Coupa Software Incorporated
  • Ticker: COUP
  • Exchange: NasdaqGS
  • Founded: 2006
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$9.507b
  • Shares outstanding: 74.68m
  • Website: https://www.coupa.com

Number of Employees


Location

  • Coupa Software Incorporated
  • 1855 South Grant Street
  • San Mateo
  • California
  • 94402
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:49
End of Day Share Price2022/01/21 00:00
Earnings2021/10/31
Annual Earnings2021/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.