Jumia Technologies AG (JMIA) AI Stock Analysis

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Jumia Technologies AG

(NYSE:JMIA)

Rating:56Neutral

Price Target:

$7.50

▼(-4.70% Downside)

Jumia's overall stock score is primarily influenced by its strong technical momentum, which is offset by significant financial performance challenges and a weak valuation. The company's strategic initiatives and improved guidance provide some optimism, but persistent financial hurdles and valuation concerns weigh heavily on the score.

Jumia Technologies AG (JMIA) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$880.51M

Dividend YieldN/A

Average Volume (3M)4.68M

Price to Earnings (P/E)―

Beta (1Y)2.53

Revenue Growth-13.22%

EPS GrowthN/A

CountryUS

Employees2,163

SectorConsumer Cyclical

Sector Strength80

IndustrySpecialty Retail

Share Statistics

EPS (TTM)-0.12

Shares Outstanding122,462,820

10 Day Avg. Volume6,170,056

30 Day Avg. Volume4,675,274

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 Cap0.00

Enterprise Value/Revenue0.00

Enterprise Value/Gross Profit0.00

Enterprise Value/Ebitda0.00

Forecast

1Y Price Target

$6.50

Price Target Upside-17.41% Downside

Rating ConsensusHold

Number of Analyst Covering1

Jumia Technologies AG Business Overview & Revenue Model

Company DescriptionJumia Technologies AG is a leading e-commerce platform operating primarily in Africa, providing a marketplace for a wide range of products and services. Founded in 2012, Jumia connects consumers with local sellers and has expanded its offerings to include electronics, fashion, home goods, and food delivery. The company operates in several African countries, positioning itself as a key player in the continent's growing digital economy.

How the Company Makes MoneyJumia makes money through multiple revenue streams, primarily through its marketplace model, where it charges sellers a commission on each sale made through its platform. Additionally, the company generates revenue from logistics and fulfillment services it provides to sellers, as well as advertising services that allow brands to promote their products on the Jumia platform. Jumia also has partnerships with various financial institutions and payment service providers, which facilitate transactions and enhance customer experience. Furthermore, Jumia's growth in food delivery and other value-added services contributes to its earnings, reflecting its strategy to diversify revenue sources while catering to the evolving consumer demands in the African market.

Jumia Technologies AG Key Performance Indicators (KPIs)

Any

Quarterly Active Consumers

Quarterly Active Consumers
Tracks the number of unique consumers who made a purchase in a quarter, reflecting customer engagement and the platform's ability to attract and retain users.

Chart InsightsJumia's quarterly active consumers have been on a declining trend since 2023, reflecting challenges in maintaining user engagement. However, the recent earnings call highlights a 15% year-over-year growth in active customers ordering physical goods, suggesting a strategic shift towards enhancing customer engagement and order growth. Despite currency headwinds and a revenue decline, Jumia's focus on cost reduction and strategic expansions, such as increased international vendor growth and logistics services, could stabilize consumer numbers and drive future growth.

Data provided by:

Main Street Data

Jumia Technologies AG Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: 71.83%|

Next Earnings Date:Nov 18, 2025

Earnings Call Sentiment Positive

The earnings call conveyed a generally positive sentiment with strong revenue growth, increased physical goods orders, and successful campaigns. While there were challenges in Egypt and a decrease in average order value, the positive aspects, including significant growth in key markets and improved cash burn, outweighed the negatives.

Q2-2025 Updates

Positive Updates

Strong Revenue Growth

Revenue rose by 25% year-over-year to $45.6 million, driven by increased usage and stronger monetization of the marketplace.

Physical Goods Orders Increase

Physical goods orders grew 18% year-over-year, and GMV increased by 10%, excluding the impact of exits from South Africa and Tunisia.

Improved Cash Burn and Loss Reduction

Cash burn significantly reduced to $12.4 million, with loss before income tax narrowed to $16.3 million for the quarter.

Successful Jumia Anniversary Campaign

The campaign strengthened consumer engagement and drove order growth, with over 38,500 sellers participating.

Expansion in Underserved Areas

Orders from underserved upcountry regions now represent 59% of total volumes, up from 52% year-over-year.

Nigeria and Kenya Market Performance

Nigeria posted a 25% increase in physical goods orders and a 36% rise in GMV, while Kenya saw a 38% growth in orders and a 31% increase in GMV.

Launch of Advanced Seller Advertising Platform

Advertising revenue was $1.9 million, with plans to scale this high margin revenue stream.

Negative Updates

Decreased Average Order Value

The average order value for physical goods in Q2 2025 stood at $36.3, down from $39.2 in Q2 2024, primarily due to reduced corporate sales in Egypt.

Challenges in Egypt

Physical goods orders in Egypt declined 6% year-over-year with GMV falling 50% in reporting currency, though excluding corporate sales, GMV grew by 6%.

Company Guidance

During the second quarter of 2025, Jumia provided optimistic guidance, highlighting significant growth metrics and strategic advancements. The company reported an 18% year-over-year increase in physical goods orders and a 10% rise in GMV, excluding the impact of its exits from South Africa and Tunisia. Revenue grew by 25% year-over-year, and Jumia managed to narrow its loss before income tax to $16.3 million while reducing cash burn to $12.4 million. The company's Jumia anniversary campaign played a key role in driving order growth and strengthening consumer engagement. With a focus on operational efficiency and cost management, Jumia raised its full-year 2025 guidance for loss before income tax to a range of $45 million to $50 million and maintained its targets for 2026 and 2027, aiming for profitability by 2027. The company also reported a 13% increase in quarterly active customers and a 24% growth in GMV for physical goods, excluding corporate sales. Additionally, Jumia's logistics platform as a service expanded in several countries, contributing to its strategic goals. Looking ahead, Jumia anticipates GMV growth to accelerate in the second half of the year, supported by strong consumer demand and improved operational efficiencies.

Jumia Technologies AG Financial Statement Overview

Summary

Jumia faces significant financial challenges, with persistent losses and negative cash flow trends. Despite a reasonable gross profit margin, the company struggles with high operating losses and declining stockholders' equity, indicating a need for effective cost control and additional capital.

Income Statement

Negative

Jumia's income statement reveals significant challenges, highlighted by persistent losses. The company's TTM (Trailing-Twelve-Months) data shows a negative net profit margin of approximately -48.5% and a declining revenue trend, with a revenue decrease of about 7.5% from the previous annual report. Despite a consistent gross profit margin of around 57%, high operating losses reflected in negative EBIT and EBITDA margins indicate severe profitability issues.

Balance Sheet

Neutral

Jumia's balance sheet shows a moderately leveraged position with a debt-to-equity ratio of approximately 0.18. The equity ratio is around 39.4%, indicating a reliance on equity financing. However, the declining stockholders' equity over recent periods raises concerns about the company's ability to sustain its operations without additional capital.

Cash Flow

Negative

The cash flow statement highlights a worrying trend with negative operating and free cash flows, indicating that Jumia is not generating sufficient cash from its operations. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, reflecting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	154.85M	167.49M	186.40M	221.88M	177.93M	210.60M
Gross Profit	88.25M	99.53M	107.10M	132.11M	110.55M	140.04M
EBITDA	-94.67M	-85.63M	-85.98M	-191.25M	-213.36M	-167.92M
Net Income	-75.15M	-99.09M	-104.16M	-237.84M	-226.79M	-242.78M
Balance Sheet
Total Assets	174.76M	192.07M	189.94M	330.07M	577.73M	536.86M
Cash, Cash Equivalents and Short-Term Investments	110.70M	133.94M	120.57M	227.83M	512.80M	461.40M
Total Debt	12.33M	11.20M	12.15M	13.85M	12.54M	16.47M
Total Liabilities	106.44M	105.79M	121.22M	155.37M	165.14M	198.74M
Stockholders Equity	68.83M	86.79M	69.23M	175.17M	413.04M	338.63M
Cash Flow
Free Cash Flow	-87.16M	-60.88M	-75.23M	-251.34M	-178.31M	―
Operating Cash Flow	-82.86M	-57.20M	-72.98M	-240.18M	-171.12M	-148.53M
Investing Cash Flow	23.82M	-10.40M	62.53M	212.82M	-404.81M	90.57M
Financing Cash Flow	89.35M	89.46M	-7.41M	-8.76M	334.25M	282.26M

Jumia Technologies AG Technical Analysis

Technical Analysis Sentiment

Positive

Last Price7.87

Price Trends

50DMA

4.91

Positive

100DMA

3.81

Positive

200DMA

3.70

Positive

Market Momentum

MACD

0.87

Negative

RSI

72.39

Negative

STOCH

68.59

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JMIA, the sentiment is Positive. The current price of 7.87 is above the 20-day moving average (MA) of 6.19, above the 50-day MA of 4.91, and above the 200-day MA of 3.70, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 72.39 is Negative, neither overbought nor oversold. The STOCH value of 68.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHWY	72 Outperform	$17.00B	45.84	76.24%	―	7.64%	369.79%
ETSY	65 Neutral	$6.29B	51.95	-39.97%	―	2.38%	-38.88%
HEPS	62 Neutral	$919.16M	―	-64.24%	―	28.17%	―
CPNG	61 Neutral	$51.45B	144.76	8.55%	―	18.69%	-65.55%
W	57 Neutral	$9.90B	―	17.86%	―	0.87%	54.67%
Sector *	57 Neutral	HK$25.99B	4.36	-4.73%	5.52%	-0.90%	-51.66%
JMIA	56 Neutral	$880.51M	―	-176.82%	―	-13.22%	―

* Consumer Cyclical Sector Average

Performance Comparison

JMIA

Jumia Technologies AG

7.87

2.56

48.21%

Wayfair

77.84

33.36

75.00%

ETSY

Etsy

62.66

7.50

13.60%

CHWY

Chewy

39.57

13.76

53.31%

CPNG

Coupang

28.75

5.97

26.21%

HEPS

D-Market

2.92

0.17

6.18%

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 13, 2025