D-Market (HEPS) AI Stock Analysis

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D-Market

(NASDAQ:HEPS)

Rating:58Neutral

Price Target:

$3.00

▲(14.50%Upside)

The overall stock score is primarily influenced by the company's strong revenue growth and effective cash flow management. However, profitability challenges, bearish technical indicators, and lack of valuation metrics weigh down the score. Improving profitability and providing clearer valuation data could enhance the stock's attractiveness.

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

Market Cap

$842.02M

Dividend YieldN/A

Average Volume (3M)527.40K

Price to Earnings (P/E)―

Beta (1Y)0.49

Revenue Growth22.41%

EPS GrowthN/A

CountryUS

Employees3,743

SectorConsumer Cyclical

Sector Strength68

IndustrySpecialty Retail

Share Statistics

EPS (TTM)-0.06

Shares Outstanding321,382,900

10 Day Avg. Volume739,127

30 Day Avg. Volume527,403

Financial Highlights & Ratios

PEG Ratio1.26

Price to Book (P/B)10.28

Price to Sales (P/S)0.00

P/FCF Ratio19.82

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 Upside75.57% 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:Jul 31, 2025

(Q4-2024)

% Change Since: 4.38%|

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. To improve overall financial health, a focus on enhancing profitability and optimizing capital structure would be beneficial.

Income Statement

Positive

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.

Balance Sheet

Neutral

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.

Cash Flow

Positive

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.

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

Technical Analysis Sentiment

Negative

Last Price2.62

Price Trends

50DMA

2.71

Negative

100DMA

2.75

Negative

200DMA

2.97

Negative

Market Momentum

MACD

-0.05

Negative

RSI

48.16

Neutral

STOCH

62.81

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HEPS, the sentiment is Negative. The current price of 2.62 is below the 20-day moving average (MA) of 2.64, below the 50-day MA of 2.71, and below the 200-day MA of 2.97, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 62.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPNG	74 Outperform	$52.18B	207.81	6.06%	―	20.88%	-80.08%
Sector *	63 Neutral	£1.71B	10.45	5.76%	3.24%	0.23%	-35.26%
ETSY	63 Neutral	$5.78B	46.60	-39.97%	―	2.38%	-38.88%
TDUP	62 Neutral	$976.72M	―	-69.51%	―	-10.55%	9.27%
HEPS	58 Neutral	$842.02M	―	-51.21%	―	22.41%	―
JMIA	57 Neutral	$544.96M	―	-134.38%	―	-23.23%	―
W	52 Neutral	$8.37B	―	17.86%	―	-0.89%	46.62%

* Consumer Cyclical Sector Average

Performance Comparison

HEPS

D-Market

2.62

-0.15

-5.42%

Wayfair

65.22

20.84

46.96%

ETSY

Etsy

58.77

3.32

5.99%

JMIA

Jumia Technologies AG

4.45

-6.14

-57.98%

CPNG

Coupang

28.74

8.39

41.23%

TDUP

thredUP

8.47

6.74

389.60%

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.Date of analysis: Aug 01, 2025