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D-Market Electronic Services & Trading (HEPS)
:HEPS
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D-Market
(NASDAQ:HEPS)
Rating:58Neutral
Price Target:
$3.00
▲(12.78%Upside)
D-Market (HEPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$854.88M
Dividend YieldN/A
Average Volume (3M)423.33K
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue Growth22.41%
EPS GrowthN/A
CountryUS
Employees3,743
SectorConsumer Cyclical
Sector Strength64
IndustrySpecialty Retail
Share Statistics
EPS (TTM)N/A
Shares Outstanding321,382,900
10 Day Avg. Volume428,838
30 Day Avg. Volume423,332
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
$4.60Price Target Upside72.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
D-Market Business Overview & Revenue Model
Company DescriptionD-Market Elektronik Hizmetler ve Ticaret A.S. operates e-commerce platforms in Turkey. The company operates www.hepsiburada.com, a retail website that provides its retail customers a range of merchandise, including electronics and non-electronics, such as books, sports, toys, kids and baby products, cosmetics, furniture, etc. It also offers HepsiExpress, an app-in-app initiative and on-demand delivery service that delivers groceries, water, and flowers; HepsiJet that provides last- mile delivery services; HepsiLojistik, which offers storage and fulfillment services; HepsiMat, a pick-up and drop-off point; HepsiAd that provides advertising service and data driven insights; HepsiGlobal for discovering and purchasing products from international merchants online; Hepsipay, which offers an e-money and payment services; and HepsiFly for buying airline tickets online. The company was incorporated in 2000 and is headquartered in Istanbul, Turkey.
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: 3.50%|
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
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.72
Positive
Balance Sheet
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.65
Positive
Cash Flow
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.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Positive
2.66
Price Trends
2.70
Positive
2.99
Negative
2.92
Negative
Market Momentum
-0.02
Negative
52.01
Neutral
56.32
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 2.66 is below the 20-day moving average (MA) of 2.70, below the 50-day MA of 2.70, and below the 200-day MA of 2.92, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 56.32 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $51.65B | 205.86 | 6.06% | ― | 20.88% | -80.08% | |
68 Neutral | $6.65B | 45.33 | -39.97% | ― | 2.18% | -32.87% | |
67 Neutral | $912.87M | ― | -69.51% | ― | -10.55% | 9.27% | |
62 Neutral | $6.84B | 11.41 | 2.80% | 3.87% | 2.70% | -24.58% | |
58 Neutral | $854.88M | ― | -51.21% | ― | 22.41% | ― | |
47 Neutral | $412.70M | ― | -134.38% | ― | -23.23% | ― | |
44 Neutral | $5.81B | ― | 17.86% | ― | -0.89% | 46.62% |
* Consumer Cyclical Sector Average
Performance Comparison
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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.