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Jumia Technologies AG (JMIA)
NYSE:JMIA
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Jumia Technologies AG
(NYSE:JMIA)
46Neutral
Jumia Technologies AG (JMIA) vs. S&P 500 (SPY)
Market Cap
$312.28M
Dividend YieldN/A
Average Volume (3M)3.51M
Price to Earnings (P/E)―
Beta (1Y)2.81
Revenue Growth-15.87%
EPS GrowthN/A
CountryUS
Employees2,163
SectorConsumer Cyclical
Sector Strength48
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-1.02
Shares Outstanding122,462,820
10 Day Avg. Volume1,675,165
30 Day Avg. Volume3,512,017
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.81
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.75Price Target Upside88.49% Upside
Rating ConsensusHold
Number of Analyst Covering1
Jumia Technologies AG Business Overview & Revenue Model
Company DescriptionJumia Technologies AG operates an e-commerce platform in West Africa, North Africa, East and South Africa, Europe, the United Arab Emirates, and internationally. The company's platform consists of marketplace that connects sellers with consumers; logistics service that enables the shipment and delivery of packages from sellers to consumers; and payment service, which facilitates transactions to participants active on the company's platform in selected markets. Its marketplace offers various products in a range of categories, such as fashion and apparel, beauty and personal care, home and living, fast moving consumer goods, smartphones, and other electronics, as well as access to various services, including restaurant food delivery, airtime recharge, and utility bills payment services. The company was formerly known as Africa Internet Holding GmbH and changed its name to Jumia Technologies AG in January 2019. Jumia Technologies AG was incorporated in 2012 and is headquartered in Berlin, Germany.
How the Company Makes MoneyJumia Technologies AG primarily makes money through its online marketplace platform where it charges commissions to sellers for each successful transaction. Additionally, the company generates revenue from advertising services offered to vendors looking to increase their product visibility. Jumia also earns money through its logistics services by providing delivery solutions to sellers and buyers. Furthermore, JumiaPay plays a significant role in its revenue model by processing payments and charging transaction fees. Partnerships with third-party logistics providers and financial institutions enhance its service offerings and contribute to its earnings.
Jumia Technologies AG Financial Statement Overview
Summary
Jumia Technologies AG is facing significant financial challenges with declining revenues and substantial losses. While the company maintains a low debt level, its negative profitability metrics and cash flow issues highlight the need for strategic improvements to enhance financial health and sustainability.Income Statement
Jumia Technologies AG has been experiencing declining revenues with a revenue growth rate of -10.13% from 2023 to 2024. The gross profit margin for 2024 is 59.43%, which is strong; however, the company has been reporting negative net profit margins, with a net profit margin of -59.16% in 2024. The EBIT and EBITDA margins are both negative, indicating ongoing operational challenges.45
Neutral
Balance Sheet
The company's debt-to-equity ratio stands at 0.13 for 2024, reflecting low leverage, which is positive. However, the return on equity is negative at -114.14%, owing to substantial losses. The equity ratio is 45.19%, suggesting a moderate level of financial stability.50
Neutral
Cash Flow
Jumia's operating cash flow for 2024 is negative, and free cash flow remains negative, although it has improved from 2023. The free cash flow to net income ratio is 0.61, indicating some efficiency in cash management despite ongoing cash outflows.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 167.49M | 186.40M | 221.88M | 177.93M | 210.60M | Gross Profit |
| 99.53M | 107.10M | 132.11M | 110.55M | 140.04M | EBIT |
| -66.00M | -73.31M | -227.09M | -240.90M | -225.09M | EBITDA |
| -86.39M | -85.98M | -191.25M | -213.36M | -167.92M | Net Income Common Stockholders |
| -99.09M | -104.16M | -237.84M | -226.79M | -242.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 133.94M | 120.57M | 227.83M | 512.80M | 461.40M | Total Assets |
| 192.07M | 189.94M | 330.07M | 577.73M | 536.86M | Total Debt |
| 11.20M | 12.15M | 13.85M | 12.54M | 16.47M | Net Debt |
| -44.16M | -23.33M | -58.28M | -104.55M | -443.44M | Total Liabilities |
| 105.79M | 121.22M | 155.37M | 165.14M | 198.74M | Stockholders Equity |
| 86.79M | 69.23M | 175.17M | 413.04M | 338.63M |
| Cash Flow | Free Cash Flow | |||
| -60.88M | -75.23M | -251.34M | -178.31M | ― | Operating Cash Flow |
| -57.20M | -72.98M | -240.18M | -171.12M | -148.53M | Investing Cash Flow |
| -10.40M | 62.53M | 212.82M | -404.81M | 90.57M | Financing Cash Flow |
| 89.46M | -7.41M | -8.76M | 334.25M | 282.26M |
Jumia Technologies AG Technical Analysis
Negative
2.52
Price Trends
3.23
Negative
3.70
Negative
5.38
Negative
Market Momentum
-0.21
Negative
42.56
Neutral
87.34
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JMIA, the sentiment is Negative. The current price of 2.52 is above the 20-day moving average (MA) of 2.42, below the 50-day MA of 3.23, and below the 200-day MA of 5.38, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 42.56 is Neutral, neither overbought nor oversold. The STOCH value of 87.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JMIA.
Jumia Technologies AG Risk Analysis
Jumia Technologies AG disclosed 93 risk factors in its most recent earnings report. Jumia Technologies AG reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Jumia Technologies AG 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 | $319.45B | 19.00 | 11.97% | 0.72% | 4.28% | 28.42% | |
81 Outperform | $177.93B | 12.14 | 45.06% | ― | 84.13% | 122.96% | |
78 Outperform | $66.63B | 11.30 | 17.55% | 1.75% | 5.20% | 77.60% | |
76 Outperform | $106.22B | 56.62 | 51.50% | ― | 43.56% | 91.72% | |
59 Neutral | $12.50B | 11.24 | 1.20% | 3.72% | 1.27% | -20.93% | |
46 Neutral | $312.28M | ― | -127.01% | ― | -15.87% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
JMIA
Jumia Technologies AG
2.52
-2.51
-49.90%
MELI
Mercadolibre
2,191.30
653.84
42.53%
JD
JD
41.47
15.83
61.74%
BABA
Alibaba
134.48
64.50
92.17%
SHOP
Shopify
109.82
31.29
39.84%
PDD
PDD Holdings
125.25
5.15
4.29%
Jumia Technologies AG Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -35.05% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in physical goods orders, increased customer engagement, and successful cost-efficient marketing strategies. However, challenges included revenue decline, negative adjusted EBITDA, and increased cash burn. The company shows promise with strategic initiatives and operational improvements, but financial challenges remain significant.Highlights
Physical Goods Order Growth
Physical goods orders grew by 18% year-over-year, indicating strong demand on the platform.
Increased Customer Engagement
Quarterly active customers increased by 8%, demonstrating the platform's strength and value.
Efficient Marketing Spend
Marketing spend decreased from $6.2 million in Q4 '23 to $4.8 million in Q4 '24, reflecting cost-efficient strategies.
Black Friday Success
The Black Friday sales event was the largest of the year, showing strong performance with major brand partnerships and significant international sourcing.
Operational Efficiency Improvements
Net Promoter Score increased by 17 points year-over-year, and the 90-day repurchase rate increased by 325 basis points, reflecting better customer loyalty and satisfaction.
Upcountry Expansion
Upcountry orders accounted for 56% of Q4 '24, up from 49% in Q4 '23, highlighting the success of expanding beyond main urban centers.
Lowlights
Revenue Decline
Revenue in Q4 was $45.7 million, down 23% year-over-year in USD and down 2% in constant currency, primarily due to lower corporate sales in Egypt.
Negative Adjusted EBITDA
Adjusted EBITDA was negative $13.7 million compared to negative $0.6 million in Q4 '23.
GMV Decline
GMV declined 12% in USD, although it grew 13% year-over-year in constant currency, affected by currency devaluations and reduced corporate sales.
Increased Cash Burn
Cash burn for the quarter was $30.6 million compared to $26.8 million in Q4 '23, driven by termination costs, increased working capital, and capital expenditures.
Loss Before Income Tax
Loss before income tax from continuing operations increased to $17.6 million compared to $17.1 million in Q4 '23.
Company Guidance
During Jumia's fourth-quarter 2024 earnings call, the company provided guidance for 2025, highlighting several key metrics and strategic initiatives. Jumia anticipates physical goods orders to grow between 15% and 20% year-over-year, driven by strong demand and strategic initiatives. Gross Merchandise Volume (GMV) is projected to reach between $795 million and $830 million, marking an increase of 10% to 15%, excluding foreign exchange impacts. The company forecasts a reduction in loss before income tax to a range of negative $65 million to negative $70 million, signifying a year-over-year decrease of 33% to 28%. Jumia's strategy focuses on expanding product assortment, enhancing operational efficiencies, and sustaining growth, particularly by leveraging its logistics network and international sourcing, which saw 3.4 million gross items from international sellers in Q4 '24, accounting for 31% of gross items, up 61% year-over-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.