Jumia Technologies AG (NYSE:JMIA) Financial Analysis

• Jumia Technologies AG (NYSE:JMIA) has a Return on Invested Capital (ROIC) of -93.11%, indicating it is not generating sufficient returns to cover its cost of capital.
• Comparatively, fuboTV Inc. (FUBO) has a less negative ROIC to WACC ratio, suggesting it is closer to breaking even than Jumia.
• Blink Charging Co. (BLNK) exhibits the lowest ROIC to WACC ratio at -8.09, highlighting significant inefficiencies similar to Jumia's.

Jumia Technologies AG (NYSE:JMIA) is a leading e-commerce platform in Africa, offering a wide range of products and services. The company aims to connect sellers with consumers, providing a convenient online shopping experience. Despite its ambitious goals, Jumia faces stiff competition from other e-commerce giants and local players in the African market.

In evaluating Jumia's financial performance, the Return on Invested Capital (ROIC) is a critical metric. Jumia's ROIC stands at a concerning -93.11%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 18.35%. This indicates that Jumia is not generating sufficient returns to cover its cost of capital, highlighting inefficiencies in its operations.

Comparing Jumia to its peers, fuboTV Inc. (FUBO) has a ROIC of -0.02% and a WACC of 12.13%, resulting in a ROIC to WACC ratio of -0.0018. Although still negative, FUBO's ratio is the least negative among the group, suggesting it is closer to breaking even. This positions FUBO as a relatively better performer in terms of capital efficiency.

On the other hand, Blink Charging Co. (BLNK) has the lowest ROIC to WACC ratio at -8.09, with a ROIC of -139.46% and a WACC of 17.24%. This significant gap indicates that Blink is struggling to generate returns that cover its cost of capital, similar to Jumia's challenges.

Overall, all companies in this analysis, including Jumia, are operating with negative ROICs, meaning they are not covering their cost of capital. However, fuboTV's relatively better ROIC to WACC ratio suggests it may have a better chance of improving its financial performance compared to its peers.

Jumia Technologies AG (NYSE:JMIA) is a leading e-commerce platform in Africa, offering a wide range of products and services. The company operates in a competitive market, facing rivals like Amazon and Alibaba, which have a global presence. Jumia's focus is on providing a marketplace for sellers and buyers, along with logistics and payment services to facilitate transactions.

In evaluating Jumia's financial performance, the Return on Invested Capital (ROIC) is a critical metric. Jumia's ROIC stands at -93.11%, which is significantly below its Weighted Average Cost of Capital (WACC) of 18.59%. This indicates that Jumia is not generating sufficient returns to cover its cost of capital, highlighting inefficiencies in capital utilization.

Comparing Jumia to its peers, fuboTV Inc. (FUBO) has a ROIC of -0.02% and a WACC of 12.38%, resulting in a ROIC to WACC ratio of -0.0017. Although fuboTV's ratio is negative, it is the least negative among the peers, suggesting it is closer to achieving a balance between returns and capital costs.

Fastly, Inc. (FSLY) and Nano Dimension Ltd. (NNDM) also show negative ROIC to WACC ratios of -1.40 and -1.06, respectively. These figures indicate that both companies, like Jumia, are struggling to generate returns that exceed their cost of capital, though they are performing better than Jumia in this regard.

Workhorse Group Inc. (WKHS) and Blink Charging Co. (BLNK) have ROIC to WACC ratios of -1.14 and -8.00, respectively. Blink Charging's ratio is the most negative, indicating significant challenges in capital efficiency. Despite these challenges, fuboTV's relatively better position suggests it may have a more effective strategy for managing its capital compared to its peers.

• Jumia Technologies AG's (NYSE:JMIA) Return on Invested Capital (ROIC) is significantly negative at -93.11%, indicating inefficiency in generating sufficient returns on invested capital.
• Despite facing stiff competition, Jumia's Weighted Average Cost of Capital (WACC) stands at 18.11%, highlighting the challenges in covering the cost of capital with returns.
• Comparative analysis with peers such as fuboTV Inc. (FUBO), Fastly, Inc. (FSLY), Nano Dimension Ltd. (NNDM), Workhorse Group Inc. (WKHS), and Blink Charging Co. (BLNK) reveals Jumia's relative position in terms of capital efficiency and market challenges.

Jumia Technologies AG (NYSE:JMIA) is a leading e-commerce platform in Africa, offering a wide range of products and services. The company aims to connect sellers with consumers, providing a convenient online shopping experience. However, Jumia faces stiff competition from other e-commerce giants and local players in the African market.

In analyzing Jumia's financial performance, the Return on Invested Capital (ROIC) is a critical metric. Jumia's ROIC stands at -93.11%, which is significantly negative. This indicates that the company is not generating sufficient returns on its invested capital. In contrast, its Weighted Average Cost of Capital (WACC) is 18.11%, showing that the cost of capital is not being covered by returns.

Comparing Jumia to its peers, fuboTV Inc. (FUBO) has a ROIC of -0.02% and a WACC of 11.92%, resulting in a ROIC to WACC ratio of -0.0018. Although negative, fuboTV's ratio is the least negative among the group, suggesting it is closer to covering its cost of capital than Jumia.

Fastly, Inc. (FSLY) and Nano Dimension Ltd. (NNDM) also show negative ROIC to WACC ratios of -1.28 and -0.83, respectively. These figures highlight the challenges these companies face in generating returns above their cost of capital, similar to Jumia's situation.

Workhorse Group Inc. (WKHS) and Blink Charging Co. (BLNK) have ROIC to WACC ratios of -1.39 and -7.76, respectively. Blink Charging's ratio is the most negative, indicating significant challenges in capital efficiency. Despite these challenges, fuboTV's relatively better position in terms of capital efficiency stands out among the peers.