JMIA

Jumia Technologies Ag - ADR

TMT, Finance/Real Estate


Presented:04/14/2021
Price:$35.15
Cap:$3.15B
Current Price:$5.06
Cap:$0.52B

Presented

Date04/14/2021
Price$35.15
Market Cap$3.15B
Ent Value$3.01B
P/E RatioN/A
Book Value$3.07
Div Yield0%
Shares O/S89.63M
Ave Daily Vol8,249,254
Short IntN/A

Current

Price$5.06
Market Cap$0.52B
Jumia Technologies AG engages in the provision of logistic services. It operates though e-Commerce platform segment. The e-Commerce platform segment consists of marketplace, which connects sellers with consumers to its logistics service, which enables the shipment and delivery of packages from sellers to consumers, and payment service, which facilitates transactions among participants active on platform in selected markets. The company was founded by Jeremy Hodara, Sacha Poignonnec, Peter Allerstorfer, Manuel Koser, Tunde Kehinde and Raphael Afaedor in 2012 and is headquartered in Berlin, Germany.

Publicly traded companies mentioned herein: Alibaba, Amazon.com Inc (AMZN), Jumia Technologies AG (JMIA), Sea Limited (SE)

Highlights

The presenter is long shares of Jumia Technologies AG (JMIA), a marketplace focusing on e-commerce, logistics, and payments services in Africa. With a population of ~1.3B, Africa is a largely underpenetrated market. Given JMIA’s first-mover advantage and lack of competition in the space, he believes that it is well-positioned to penetrate the last frontier of e-commerce. He estimates that JMIA is poised to capture a large portion of a $75B e-commerce TAM (as estimated by McKinsey). As JMIA executes, shifting its focus from growth to profitability in the medium to long term, he believes the stock could double or triple from its current price of ~ $34.

JMIA currently has a monopoly on the African continent, with operations in 11 African countries. However, the presenter believes that JMIA’s story is largely misunderstood. The company has faced skepticism from investors about its business model (including a short thesis in the past by Citron Research), fraud allegations, and declining GMVs in the most recent quarters. Furthermore, he feels that investors are overly negative on the management team, but he remains optimistic about management’s ability to learn and eventually execute in the long term. 

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Idea Discussion

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