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D-Market (HEPS)
NASDAQ:HEPS
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D-Market
(NASDAQ:HEPS)
Rating:57Neutral
Price Target:
$3.00
▲(4.53% Upside)
Positive Factors
Revenue Growth
D-Market's strong revenue growth indicates expanding market reach and increasing customer adoption, which is crucial for long-term success in the competitive e-commerce sector.
Cash Flow Management
Effective cash flow management supports D-Market's ability to fund operations and invest in growth opportunities, enhancing financial stability and strategic flexibility.
Stable Equity Base
A stable equity base provides D-Market with a solid foundation for future growth and resilience against market fluctuations, supporting long-term business sustainability.
Negative Factors
Profitability Challenges
Ongoing profitability issues highlight operational inefficiencies, which may hinder D-Market's ability to reinvest in growth and compete effectively over the long term.
High Liabilities
High liabilities relative to equity could pose financial risks, limiting D-Market's ability to leverage opportunities and withstand economic downturns.
Weak Margins
Weak margins indicate challenges in achieving operational efficiency, which could impact D-Market's profitability and competitive positioning in the long run.
D-Market (HEPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$915.94M
Dividend YieldN/A
Average Volume (3M)309.45K
Price to Earnings (P/E)―
Beta (1Y)0.49
Revenue Growth28.17%
EPS GrowthN/A
CountryUS
Employees3,743
SectorConsumer Cyclical
Sector Strength81
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.06
Shares Outstanding281,382,900
10 Day Avg. Volume143,373
30 Day Avg. Volume309,451
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.03
Enterprise Value/Ebitda0.26
Forecast
1Y Price Target
$3.00Price Target Upside4.53% Upside
Rating ConsensusHold
Number of Analyst Covering1
D-Market Business Overview & Revenue Model
Company DescriptionD-Market (HEPS) is a leading e-commerce platform in Turkey, primarily operating in the online marketplace sector. The company offers a diverse range of products, including electronics, home goods, fashion, and groceries, catering to a wide customer base. D-Market connects consumers with various sellers, enabling a seamless shopping experience through its user-friendly online interface and mobile applications.
How the Company Makes MoneyD-Market generates revenue primarily through transaction fees charged to sellers for each sale made on its platform. This revenue model includes commission percentages based on the product categories sold. Additionally, the company earns income from advertising services, allowing vendors to promote their products through featured listings and targeted ads. D-Market may also generate revenue from subscription services offered to sellers for enhanced visibility and analytics tools. Strategic partnerships with logistics and payment processing companies further bolster its operations, enabling efficient delivery and secure transactions, which are crucial for customer satisfaction and repeat business.
D-Market Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Dec 09, 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 experiencing substantial growth in revenue but faces profitability challenges. The balance sheet reflects a stable equity base with manageable debt levels, but there is room for improvement in leveraging equity more effectively. Strong cash flow management is a positive aspect, providing a solid foundation for future investments and operations.Income Statement
D-Market has shown significant revenue growth over the years, with a notable increase from 2020 to the TTM ending March 2025. However, the company has struggled with profitability, consistently posting negative net income. The EBIT and EBITDA margins are weak, indicating challenges in operational efficiency. The company's gross profit margin is relatively healthy, showcasing its capability to generate profit before operating expenses.65
Positive
Balance Sheet
The balance sheet reflects a stable equity position with a positive stockholders' equity. The debt-to-equity ratio is reasonable, suggesting manageable leverage levels. However, the overall liabilities are high compared to equity, which might pose risks if not managed effectively. The equity ratio indicates a moderate proportion of equity financing, which provides some stability.60
Neutral
Cash Flow
D-Market has demonstrated strong operating cash flows, consistently positive and able to support capital expenditures. The free cash flow has been positive in recent periods, indicating effective cash management. However, fluctuations in investing and financing cash flows suggest variability in capital allocation strategies.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 57.18B | 57.05B | 35.56B | 16.07B | 7.56B | 6.38B |
| Gross Profit | 20.65B | 21.39B | 7.25B | 3.49B | 1.85B | 1.53B |
| EBITDA | 2.65B | 3.31B | 2.63B | -3.39B | -2.11B | -295.23M |
| Net Income | -1.77B | -1.60B | 75.53M | -2.91B | -3.33B | -597.75M |
Balance Sheet | ||||||
| Total Assets | 26.37B | 26.14B | 17.58B | 16.59B | 13.39B | 1.96B |
| Cash, Cash Equivalents and Short-Term Investments | 7.29B | 9.13B | 7.22B | 8.71B | 8.17B | 592.64M |
| Total Debt | 2.75B | 2.23B | 462.67M | 471.81M | 664.36M | 491.49M |
| Total Liabilities | 23.03B | 22.82B | 14.28B | 13.22B | 8.57B | 2.75B |
| Stockholders Equity | 3.34B | 3.32B | 3.30B | 3.37B | 4.81B | -787.33M |
Cash Flow | ||||||
| Free Cash Flow | 1.73B | 3.69B | 3.87B | -416.40M | -125.31M | 341.25M |
| Operating Cash Flow | 3.90B | 5.70B | 5.02B | 428.75M | 89.47M | 441.36M |
| Investing Cash Flow | 5.54B | 894.71M | -1.68B | 1.10B | -1.01B | -99.95M |
| Financing Cash Flow | -6.77B | -5.87B | -3.33B | -1.47B | 3.29B | -18.89M |
D-Market Technical Analysis
Positive
2.87
Price Trends
2.76
Positive
2.74
Positive
2.94
Negative
Market Momentum
0.01
Negative
54.80
Neutral
72.78
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 2.87 is above the 20-day moving average (MA) of 2.83, above the 50-day MA of 2.76, and below the 200-day MA of 2.94, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.80 is Neutral, neither overbought nor oversold. The STOCH value of 72.78 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 3 New Risks
1.
We have been and in the future may be involved in litigation, some of which is material. Q4, 2022
2.
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
3.
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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $1.21B | ― | -176.83% | ― | -13.22% | ― | |
63 Neutral | $1.28B | ― | -58.93% | ― | -10.39% | 14.92% | |
62 Neutral | $59.09B | 163.19 | 8.55% | ― | 18.69% | -65.55% | |
61 Neutral | $18.16B | 12.70 | -2.51% | 3.03% | 1.44% | -15.67% | |
59 Neutral | $5.84B | 47.14 | -39.97% | ― | 2.38% | -38.88% | |
57 Neutral | $915.94M | ― | -64.24% | ― | 28.17% | ― | |
57 Neutral | $11.36B | ― | 17.86% | ― | 0.87% | 54.67% |
* Consumer Cyclical Sector Average
Performance Comparison
HEPS
D-Market
2.87
0.67
30.45%
W
Wayfair
87.61
39.58
82.41%
ETSY
Etsy
58.94
5.06
9.39%
JMIA
Jumia Technologies AG
9.91
5.34
116.85%
CPNG
Coupang
32.41
8.46
35.32%
TDUP
thredUP
10.40
9.49
1042.86%
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.