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In the time period, we are in with all of the skyrocketing stock prices, it's time to look 5-10 years ahead and identify the companies of today that will become household names of tomorrow.
$JMIA is one of them.
Jumia is Nigeria's #1 E-commerce company.
$JMIA is one of them.
Jumia is Nigeria's #1 E-commerce company.
One needs to acknowledge that Jumia is developing as a key player in the emerging African markets.
This means that:
There will be growing pains.
There will be challenges.
There will be ups and downs.
This means that:
There will be growing pains.
There will be challenges.
There will be ups and downs.
The key factors of why I've been long on $JMIA are:
1. Exponential growth of population in Africa
2. Exponential growth of e-commerce consumers in Africa and worldwide
3. An elite, multi-purpose platform of $JMIA
4. The first-mover advantage of $JMIA in the African markets
1. Exponential growth of population in Africa
2. Exponential growth of e-commerce consumers in Africa and worldwide
3. An elite, multi-purpose platform of $JMIA
4. The first-mover advantage of $JMIA in the African markets
5. $JMIA is the only scaled e-commerce company in Africa
6. Potential $75b estimated market growth by 2025 for Africa e-commerce (Per McKinsey Global)
Now let's see the services offered by $JMIA
6. Potential $75b estimated market growth by 2025 for Africa e-commerce (Per McKinsey Global)
Now let's see the services offered by $JMIA
Jumia Marketplace - offers a wide range of goods such as smartphones, electronics, apparel, household goods, packaged foods, beauty, and perfumes.
$JMIA also provides:
Restaurant food deliveries
Hotel and flight booking
Advertising
Airtime recharge
Instant Deliveries
$JMIA also provides:
Restaurant food deliveries
Hotel and flight booking
Advertising
Airtime recharge
Instant Deliveries
Jumia Logistics:
A large network of LEASED warehouses
Pick-up and drop-off locations for third-party sellers
Jumia Logistics facilitates and ensures a safe and reliable delivery of goods.
A large network of LEASED warehouses
Pick-up and drop-off locations for third-party sellers
Jumia Logistics facilitates and ensures a safe and reliable delivery of goods.
JumiaPay:
Easy, safe, and fast online payment solution on $JMIA platform.
$JMIA is active across 11 African countries, 600mm+ people, and accounts for more than 70% of Africa's GDP.
Now let's look at the financials (per Reuters research)
Easy, safe, and fast online payment solution on $JMIA platform.
$JMIA is active across 11 African countries, 600mm+ people, and accounts for more than 70% of Africa's GDP.
Now let's look at the financials (per Reuters research)
Valuation:
Price/Sales (TTM): 5.87
Price/Book (MRQ): 4.92
Profitability (%):
Gross Margin(TTM): 55.12
Operating Margin (TTM): (128.34)
Net Profit Margin (TTM): (127.11)
Financial Strenght (MRQ):
Quick Ratio: 2.5
Current Ratio: 2.6
LT Debt/Equity: 0.03
Total Debt/Eq: 0.05
Price/Sales (TTM): 5.87
Price/Book (MRQ): 4.92
Profitability (%):
Gross Margin(TTM): 55.12
Operating Margin (TTM): (128.34)
Net Profit Margin (TTM): (127.11)
Financial Strenght (MRQ):
Quick Ratio: 2.5
Current Ratio: 2.6
LT Debt/Equity: 0.03
Total Debt/Eq: 0.05
Per Share Data:
Earnings (TTM): (3.43)
Sales(TTM): 2.54
Book Value(MRQ): 2.76
Cash Flow(TTM): (3.09)
Cash(MRQ): 3.50
Management Effectiveness(TTM) :
ROE: (83.69)%
ROA: (55.96)%
ROI: (81.37)%
Earnings (TTM): (3.43)
Sales(TTM): 2.54
Book Value(MRQ): 2.76
Cash Flow(TTM): (3.09)
Cash(MRQ): 3.50
Management Effectiveness(TTM) :
ROE: (83.69)%
ROA: (55.96)%
ROI: (81.37)%
GAAP EPS Growth and Trends:
Q1 2020: -$0.59
Q2 2020: -$0.55
Q3 2020: -$0.47
Change from Q1 to Q2 - 44.53%
Change from Q2 to Q3 - 35.28%
Revenues:
Q1 2020: $32.26
Q2 2020: $38.48
Q3 2020: $39.37
Q4 2020 est: $50.24
Q1 2020: -$0.59
Q2 2020: -$0.55
Q3 2020: -$0.47
Change from Q1 to Q2 - 44.53%
Change from Q2 to Q3 - 35.28%
Revenues:
Q1 2020: $32.26
Q2 2020: $38.48
Q3 2020: $39.37
Q4 2020 est: $50.24
All in all, $JMIA is a long-shot. As a first-mover in E-commerce in one of the largest emerging markets, they hold a key advantage.
It will take years for $JMIA to become a big-time player, but for a buy-hold investor, the price fluctuations will not matter much.
It will take years for $JMIA to become a big-time player, but for a buy-hold investor, the price fluctuations will not matter much.
Per @patrickc of Stripe:
“In absolute numbers, Africa may be smaller right now than other regions,
but online commerce will grow about 30% every year. And even with wider global declines, online shoppers
are growing twice as fast."
Continued
“In absolute numbers, Africa may be smaller right now than other regions,
but online commerce will grow about 30% every year. And even with wider global declines, online shoppers
are growing twice as fast."
Continued
"Stripe thinks on a longer time horizon than others because we are an
infrastructure company. We are thinking of what the world will look like in 2040-2050.”
infrastructure company. We are thinking of what the world will look like in 2040-2050.”
I personally believe in $JMIA and its management.
Obviously, this isn't investment advice.
I just wanted to share information about a company that I'm becoming more and more passionate about.
Obviously, this isn't investment advice.
I just wanted to share information about a company that I'm becoming more and more passionate about.
