D-Market (HEPS) AI Stock Analysis

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D-Market

(NASDAQ:HEPS)

Rating:63Neutral

Price Target:

$3.00

▲(5.26%Upside)

D-Market's overall stock score is influenced primarily by its financial performance, which shows strong revenue growth but profitability challenges. Technical analysis indicates positive short-term momentum. However, the lack of valuation metrics and earnings call data limits further insights.

D-Market (HEPS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$909.51M

Dividend YieldN/A

Average Volume (3M)370.32K

Price to Earnings (P/E)―

Beta (1Y)0.55

Revenue Growth22.41%

EPS GrowthN/A

CountryUS

Employees3,743

SectorConsumer Cyclical

Sector Strength57

IndustrySpecialty Retail

Share Statistics

EPS (TTM)N/A

Shares Outstanding321,382,900

10 Day Avg. Volume432,746

30 Day Avg. Volume370,319

Financial Highlights & Ratios

PEG Ratio4.31

Price to Book (P/B)10.19

Price to Sales (P/S)0.00

P/FCF Ratio8.94

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$4.60

Price Target Upside61.40% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

D-Market Business Overview & Revenue Model

Company DescriptionD-Market (HEPS), operating under the brand name Hepsiburada, is a leading e-commerce platform based in Turkey. It serves as an online marketplace offering a wide range of products across various sectors, including electronics, fashion, home goods, and groceries. The company is recognized for its comprehensive product offerings and services, catering to millions of customers with a focus on convenience and customer satisfaction.

How the Company Makes MoneyHepsiburada makes money primarily through its online marketplace operations. The company generates revenue by charging commissions on sales made by third-party sellers on its platform. It also earns income from advertisement services offered to sellers, enhancing their visibility on the platform. Additionally, Hepsiburada has a logistics and fulfillment service, which provides an integrated supply chain solution for sellers, generating further revenue. Key partnerships with various brands and retailers also contribute to its earnings by expanding product offerings and attracting a larger customer base.

D-Market Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q4-2024)

% Change Since: 10.89%|

Next Earnings Date:Aug 21, 2025

Earnings Call Sentiment Neutral

Hepsiburada showed strong growth in GMV and customer base, with successful expansion of strategic programs like Hepsiburada Premium and HepsiJet. However, the company faced significant challenges from macroeconomic pressures and increased operating expenses. Despite these challenges, the overall financial performance, particularly in revenue growth areas, indicates a balanced outlook.

Q4-2024 Updates

Positive Updates

GMV Growth

Hepsiburada achieved a real GMV growth of 12.1% in 2024, with an unadjusted inflation basis growth of 74% year-on-year.

Customer Base Expansion

Active customers grew by 235,000 to 12.2 million, and order frequency increased by 14%, reaching 10.8 over the last 12 months.

Hepsiburada Premium Program Growth

The loyalty program reached a member base of 3.7 million, with expanded content offerings through a partnership with Warner Bros. Discovery.

HepsiJet and Hepsipay Expansion

HepsiJet delivered 72% of total parcels dispatched, and Hepsipay integrated with 140 key accounts by end of 2024.

Revenue Growth in Key Areas

Q4 2024 saw a 15% rise in 3P revenue, 18% increase in delivery service revenue, and 127% increase in other revenue.

Negative Updates

Macroeconomic Headwinds and Boycotts

The start of 2025 was challenging with macroeconomic pressures on consumer purchasing power and boycotts against shopping.

Decrease in Free Cash Flow

Free cash flow decreased by TRY 1.9 billion compared to the previous year, mainly due to a decrease in net cash provided by operating activities and increased CapEx.

Rising Operating Expenses

There was an increase in payroll, shipping, packaging, and other operating expenses, which affected profitability despite the rise in gross contribution margin.

Company Guidance

During the call, Hepsiburada provided guidance on several key metrics for the fiscal year 2024. The company achieved a real GMV growth of 12.1% and a growth contribution margin of 11.3%, marking a 2.1 percentage point improvement year-on-year. Their EBITDA as a percentage of GMV expanded to 1.1%, a 0.7 percentage point increase from the previous year. On an unadjusted inflation basis, GMV grew by 74% year-on-year, and EBITDA as a percentage of GMV reached 2.1%. The company's active customer base grew by 235,000 to 12.2 million, with order frequency over the last 12 months increasing by 14% to 10.8. Hepsiburada's delivery service, HepsiJet, delivered 72% of total parcels, while the lending solutions reached a total volume of 16.2 billion lira, a 2.6 times increase from 2023. Furthermore, HepsiJet increased its off-platform volume by 8% to 9% year-on-year, with its off-platform share rising to 34.6% of its total volume.

D-Market Financial Statement Overview

Summary

D-Market is demonstrating strong revenue growth and has made strides in improving its operational efficiency. While profitability remains a challenge due to consistent net losses, the company is improving its cash flow generation, which is essential for sustaining operations and growth. The balance sheet reflects a strengthening equity position and manageable debt levels. Continued focus on profitability and equity enhancement will be key for future stability.

Income Statement

Positive

D-Market has shown a robust revenue growth trajectory with total revenue increasing from 2020 to 2024. The revenue growth rate from 2023 to 2024 was 60.46%, which is a significant increase. However, the company has experienced volatility in profitability, with a negative net profit margin in 2024 due to the net loss. The gross profit margin improved from 2023 to 2024, indicating efficiency in cost management. The EBIT and EBITDA margins have turned positive, reflecting operational improvements.

Balance Sheet

Positive

The balance sheet shows a strong equity position with an improving equity ratio over the years, despite a negative stockholders' equity in earlier years. The debt-to-equity ratio is relatively low, indicating manageable leverage. The return on equity is not calculable due to negative net income, suggesting the company is not yet generating returns for shareholders. The overall asset base has expanded, which is a positive indicator of growth potential.

Cash Flow

Positive

D-Market has significantly improved its operating cash flow, with a positive trajectory seen from 2020 to 2024. The free cash flow has remained positive for the most recent years, supporting liquidity and potential for reinvestment. The operating cash flow to net income ratio is favorable, showing strong cash generation capabilities despite reported net losses. Free cash flow growth has been stable, indicating efficient capital management.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
57.05B	35.56B	16.07B	7.56B	6.38B
	Gross Profit
21.39B	7.25B	3.49B	1.85B	1.53B
	EBIT
16.96M	-724.98M	-3.10B	390.87M	-181.01M
	EBITDA
3.31B	2.63B	-3.39B	-2.11B	-295.23M
	Net Income Common Stockholders
-1.60B	75.53M	-2.91B	-3.33B	-597.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.13B	7.22B	5.28B	4.97B	592.64M
	Total Assets
26.14B	17.58B	10.07B	7.88B	1.96B
	Total Debt
2.23B	462.67M	286.34M	404.43M	491.49M
	Net Debt
-4.52B	-5.04B	-4.98B	-3.54B	-101.15M
	Total Liabilities
22.82B	14.28B	8.01B	5.08B	2.75B
	Stockholders Equity
3.32B	3.30B	2.06B	2.80B	-787.33M
Cash Flow		Free Cash Flow
3.69B	3.87B	-416.40M	-125.31M	341.25M
	Operating Cash Flow
5.70B	5.02B	428.75M	89.47M	441.36M
	Investing Cash Flow
894.71M	-1.68B	1.10B	-1.01B	-99.95M
	Financing Cash Flow
-5.87B	-3.33B	-1.47B	3.29B	-18.89M

D-Market Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.85

Price Trends

50DMA

2.69

Positive

100DMA

2.97

Negative

200DMA

2.92

Negative

Market Momentum

MACD

0.01

Negative

RSI

60.62

Neutral

STOCH

85.86

Negative

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 2.85 is above the 20-day moving average (MA) of 2.71, above the 50-day MA of 2.69, and below the 200-day MA of 2.92, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.62 is Neutral, neither overbought nor oversold. The STOCH value of 85.86 is Negative, 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 3 New Risks

We have been and in the future may be involved in litigation, some of which is material. Q4, 2022

We may be subject to administrative fines and our reputation may be harmed if the Personal Data Protection Authority were to determine that we breached Turkish Data Protection Law No. 6698. Q4, 2022

The effects of the earthquakes that hit southeastern region of Türkiye in February 2023 as well as potential similar earthquakes in the future may adversely affect our prospects, business, financial condition and results of operations. Q4, 2022

D-Market Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPNG	74 Outperform	$51.40B	203.18	6.06%	―	20.88%	-80.08%
ETSY	68 Neutral	$6.18B	39.77	-39.97%	―	2.18%	-32.87%
TDUP	67 Neutral	$879.76M	―	-69.51%	―	-10.55%	9.27%
HEPS	63 Neutral	$909.51M	―	-51.21%	―	22.41%	―
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
JMIA	48 Neutral	$406.58M	―	-134.38%	―	-23.23%	―
W	44 Neutral	$6.04B	―	17.86%	―	-0.89%	46.62%

* Consumer Cyclical Sector Average

Performance Comparison

HEPS

D-Market

2.85

1.06

59.22%

Wayfair

46.10

-7.19

-13.49%

ETSY

Etsy

55.99

-2.71

-4.62%

JMIA

Jumia Technologies AG

3.05

-6.36

-67.59%

CPNG

Coupang

28.10

7.56

36.81%

TDUP

thredUP

7.30

5.54

314.77%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.