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D-Market (HEPS)
NASDAQ:HEPS
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D-Market
(NASDAQ:HEPS)
68Neutral
D-Market (HEPS) vs. S&P 500 (SPY)
Market Cap
$994.68M
Dividend YieldN/A
Average Volume (3M)597.25K
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth29.68%
EPS Growth-919.86%
CountryUS
Employees3,213
SectorConsumer Cyclical
Sector Strength50
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)-0.15
Shares Outstanding281,382,900
10 Day Avg. Volume673,410
30 Day Avg. Volume597,248
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.69
Price to Cash Flow (P/CF)7.30
P/FCF Ratio63.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.50Price Target Upside7.03% Upside
Rating ConsensusHold
Number of Analyst Covering1
D-Market Business Overview & Revenue Model
Company DescriptionD-Market Electronic Services & Trading, commonly known as Hepsiburada (HEPS), is a leading e-commerce platform in Turkey. It offers a wide range of products across various categories, including electronics, fashion, home goods, and groceries. The company is recognized for its comprehensive online marketplace and logistics services, catering to both consumers and third-party sellers. Hepsiburada aims to provide a seamless shopping experience supported by its advanced technology infrastructure and customer-centric approach.
How the Company Makes MoneyHepsiburada generates revenue primarily through its e-commerce platform by facilitating the sale of a vast array of products. The company's revenue model includes direct sales of goods where it acts as a retailer, as well as through commissions and fees from third-party sellers utilizing its marketplace. Additionally, Hepsiburada earns money from advertising services offered to brands and sellers who wish to enhance their visibility on the platform. The company's logistics and fulfillment services, which include delivery and warehousing solutions, also contribute to its revenue. Strategic partnerships with financial institutions and technology providers further support its earnings by offering payment solutions and enhancing operational efficiency.
D-Market Financial Statement Overview
Summary
D-Market shows strong revenue growth and improved cash flow efficiency. However, the company is still operating at a net loss, with negative net and EBIT margins. The balance sheet is stable with manageable leverage but negative ROE due to net losses.Income Statement
D-Market has shown significant revenue growth, with an impressive increase from 2023 to TTM. Gross profit margins are strong at 33.13%, and the company has improved its EBITDA margin to 5.85% in TTM. However, the company is operating at a net loss, with a negative net profit margin of -2.94%. The EBIT margin also remains negative, indicating ongoing operational challenges.74
Positive
Balance Sheet
The balance sheet reflects a solid equity ratio of 14.98% in TTM, showing moderate financial stability. The debt-to-equity ratio is 0.46, indicating manageable leverage. However, the negative net income impacts ROE, resulting in a negative return on equity. Overall, the balance sheet shows improvement but still faces challenges in profitability.68
Positive
Cash Flow
D-Market demonstrates strong cash flow performance, with a 27.12% growth in free cash flow from 2023 to TTM, and an operating cash flow that significantly exceeds net income, indicating efficient cash generation. The free cash flow to net income ratio is robust, highlighting the company's ability to generate cash despite net losses.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 47.63B | 35.56B | 16.07B | 7.56B | 6.38B | 2.60B | Gross Profit |
| 15.78B | 7.25B | 3.49B | 1.85B | 1.53B | 756.63M | EBIT |
| -368.46M | -724.98M | -3.10B | 390.87M | -181.01M | -56.12M | EBITDA |
| 2.79B | 2.63B | -3.39B | -2.11B | -295.23M | 167.40M | Net Income Common Stockholders |
| -1.40B | 75.53M | -2.91B | -3.33B | -597.75M | -200.33M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 282.30M | 7.22B | 5.28B | 4.97B | 592.64M | 282.30M | Total Assets |
| 0.00 | 17.58B | 10.07B | 7.88B | 1.96B | 956.00M | Total Debt |
| 0.00 | 462.67M | 286.34M | 404.43M | 491.49M | 103.27M | Net Debt |
| 282.30M | -5.04B | -4.98B | -3.54B | -101.15M | -179.04M | Total Liabilities |
| 0.00 | 14.28B | 8.01B | 5.08B | 2.75B | 1.27B | Stockholders Equity |
| -310.83M | 3.30B | 2.06B | 2.80B | -787.33M | -310.83M |
| Cash Flow | Free Cash Flow | ||||
| 4.91B | 3.87B | -416.40M | -125.31M | 341.25M | 310.22M | Operating Cash Flow |
| 6.64B | 5.02B | 428.75M | 89.47M | 441.36M | 363.78M | Investing Cash Flow |
| -2.30B | -1.68B | 1.10B | -1.01B | -99.95M | -53.34M | Financing Cash Flow |
| -5.37B | -3.33B | -1.47B | 3.29B | -18.89M | -170.72M |
D-Market Technical Analysis
Positive
3.27
Price Trends
3.29
Negative
3.20
Positive
2.87
Positive
Market Momentum
-0.06
Positive
48.09
Neutral
35.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HEPS, the sentiment is Positive. The current price of 3.27 is below the 20-day moving average (MA) of 3.37, below the 50-day MA of 3.29, and above the 200-day MA of 2.87, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 35.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HEPS.
D-Market Risk Analysis
D-Market disclosed 77 risk factors in its most recent earnings report. D-Market reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
D-Market Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $326.81B | 19.55 | 11.97% | 0.70% | 4.28% | 28.42% | |
79 Outperform | $65.52B | 10.91 | 17.55% | 1.81% | 1.88% | 49.67% | |
76 Outperform | $100.89B | 53.19 | 51.50% | ― | 43.56% | 91.72% | |
73 Outperform | $2.08T | 36.02 | 24.29% | ― | 10.99% | 91.61% | |
73 Outperform | $30.39B | 17.30 | 34.29% | 1.65% | 2.79% | -23.30% | |
68 Neutral | $994.68M | ― | -39.43% | ― | 29.68% | -919.86% | |
59 Neutral | $12.41B | 10.34 | 1.32% | 3.61% | 1.65% | -18.04% |
* Consumer Cyclical Sector Average
Performance Comparison
HEPS
D-Market
3.27
1.67
104.38%
AMZN
Amazon
198.89
20.14
11.27%
EBAY
eBay
65.13
13.60
26.39%
MELI
Mercadolibre
2,004.83
443.56
28.41%
JD
JD
40.37
14.05
53.38%
BABA
Alibaba
137.14
65.28
90.84%
D-Market Earnings Call Summary
Earnings Call Date: Dec 10, 2024 | % Change Since: 0.00% | Next Earnings Date: Mar 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in terms of profitability, customer growth, and strategic initiatives. Despite macroeconomic challenges and some decreases in specific revenue streams, the company demonstrated strong performance metrics and strategic positioning for future growth.Highlights
First-time Positive Operating Income
Achieved quarterly positive operating income for the first time since IPO, reflecting strategic strength and effective execution.
Growth in Active Customers and Loyalty Program
Active customers grew by 233,000 to 12.3 million. Loyalty program scaled to nearly 3.7 million members by November.
Strong GMV and Order Growth
Recorded 32 million orders on a 19% year-on-year growth with order frequency up by 16%.
HepsiJet Expansion
HepsiJet delivered 74% of total parcels, showing a 6.8% annual rise, and expanded off-platform volume by 35%.
Improved Profitability Metrics
Gross contribution margin rose to 11.3% with a 1.9 percentage point improvement year-on-year, and EBITDA as a percentage of GMV reached 1%.
Positive Strategic Developments
Ownership transition to [indiscernible] expected to bring synergies in payments, marketplace, and fintech ecosystems.
Hepsipay Growth
Hepsipay doubled its total payment volume in Q3 compared to Q2 and aims to become Turkey's go-to digital wallet.
Lowlights
Macroeconomic Challenges
Faced continued macroeconomic pressures impacting purchasing power and demand for discretionary products.
Decrease in 1P Revenue
1P revenue decreased by 9% compared to Q3 2023 due to a shift in GMV mix towards 3P operations.
Higher Costs Impacting Margins
Rise in payroll, shipping, and packaging expenses mainly driven by higher parcel volume and increased delivery fees.
Cash Flow Decrease
Cash provided by operations decreased by TRY 1.2 billion compared to the previous year.
Regulatory and Market Challenges
No increase in active merchants due to regulatory changes and focus on quality over quantity.
Credit Card Receivable Costs
Higher cash outflow from early collection of credit card receivables compared to EBITDA.
Company Guidance
During the Q3 2024 earnings call, Hepsiburada reported a 10.3% GMV growth for the quarter, translating to a 17.4% increase over the first nine months, adjusted for inflation. The company achieved a positive operating income milestone, marking the first time since their IPO. Their gross contribution margin rose to 11.3% over the nine months, with a 1.9 percentage point improvement from the previous year. Active customer base grew by 233,000, totaling 12.3 million, while their loyalty program membership reached nearly 3.7 million. Hepsiburada also recorded 32 million orders with a 19% year-on-year growth. The company expects a 75% GMV growth for the full year, around 13% when inflation-adjusted, and anticipates EBITDA as a percentage of GMV to be around 2.2% to 2.1% for the year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.