JUMIA Story

JMIA -- USA Stock

USD 44.31 1.89 4.09%

Macroaxis Story

The stock is undergoing an active upward rally. JUMIA TECHNOLOGIES Invested Capital is projected to increase significantly based on the last few years of reporting. The past year's Invested Capital was at 33.63 Million. The current year Working Capital is expected to grow to about 212.2 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to (209.4 M). As many of us are excited about consumer cyclical space, it is fair to go over JUMIA TECHNOLOGIES AG as a unique alternative.

Published over a month ago

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Will JUMIA TECHNOLOGIES (NYSE:JMIA) debt increase in February

This firm currently holds 8.87 M in liabilities with Debt to Equity (D/E) ratio of 0.12, which may suggest the firm is not taking enough advantage from borrowing. The company has a current ratio of 1.6, which is within standard range for the sector. JUMIA TECHNOLOGIES holds a performance score of 17 on a scale of zero to a hundred. The company retains a Market Volatility (i.e. Beta) of 0.1069, which attests to not very significant fluctuations relative to the market. Let's try to break down what JUMIA's beta means in this case. As returns on the market increase, JUMIA TECHNOLOGIES returns are expected to increase less than the market. However, during the bear market, the loss on holding JUMIA TECHNOLOGIES will be expected to be smaller as well. Although it is essential to pay attention to JUMIA TECHNOLOGIES current price history, it is also good to be reasonable about what you can do with equity current price movements. Our approach towards determining future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if JUMIA TECHNOLOGIES expected return of 2.31 will be sustainable into the future, we have found twenty-seven different technical indicators, which can help you to check if the expected returns are sustainable. Use JUMIA TECHNOLOGIES AG downside variance, daily balance of power, and the relationship between the maximum drawdown and skewness to analyze future returns on JUMIA TECHNOLOGIES AG.

JUMIA TECHNOLOGIES financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of JUMIA TECHNOLOGIES, including all of JUMIA TECHNOLOGIES's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of JUMIA TECHNOLOGIES assets, the company is considered highly leveraged. Understanding the composition and structure of overall JUMIA TECHNOLOGIES debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.

Please read more on our technical analysis page.

Understanding JUMIA Total Debt

JUMIA TECHNOLOGIES liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. JUMIA TECHNOLOGIES has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on JUMIA TECHNOLOGIES balance sheet include debt obligations and money owed to different JUMIA TECHNOLOGIES vendors, workers, and loan providers. Below is the chart of JUMIA main long-term debt accounts currently reported on its balance sheet.

You can use JUMIA TECHNOLOGIES AG financial leverage analysis tool to get a better grip on understanding its financial position

How important is JUMIA TECHNOLOGIES's Liquidity

JUMIA TECHNOLOGIES financial leverage refers to using borrowed capital as a funding source to finance JUMIA TECHNOLOGIES AG ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. JUMIA TECHNOLOGIES financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between JUMIA TECHNOLOGIES's total debt and its cash.

Breaking down JUMIA TECHNOLOGIES Indicators

JUMIA TECHNOLOGIES reported the previous year's revenue of 158.24 M. Net Loss for the year was (244.59 M) with profit before overhead, payroll, taxes, and interest of 75.9 M.

Liabilities Breakdown

16.6 M

Tax Liabilities

6.9 M

Long-Term Liabilities

	Total Liabilities	125.5 Million
	Current Liabilities	119.4 Million
	Long-Term Liabilities	6.87 Million
	Tax Liabilities	16.63 Million

Will JUMIA TECHNOLOGIES current rise continue?

The risk adjusted performance is down to 0.23 as of today. JUMIA TECHNOLOGIES AG is displaying above-average volatility over the selected time horizon. Investors should scrutinize JUMIA TECHNOLOGIES AG independently to ensure intended market timing strategies are aligned with expectations about JUMIA TECHNOLOGIES volatility.

Our Final Take On JUMIA TECHNOLOGIES

Whereas some firms within the internet retail industry are still a little expensive, even after the recent corrections, JUMIA TECHNOLOGIES may offer a potential longer-term growth to investors. While some investors may not share our view, we believe that right now is not a good time to increase your holdings in JUMIA. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to JUMIA TECHNOLOGIES.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of JUMIA TECHNOLOGIES AG. Please refer to our Terms of Use for any information regarding our disclosure principles.

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