Is JMIA worth purchasing?
7/2/2025 06:51am
**Jumia Technologies AG (JMIA) is not currently worth purchasing** based on the available financial data and technical indicators. Here's why:
1. **Financial Performance Analysis**: Jumia has shown a significant decline in revenue and net income over the past three years. The company's revenue CAGR is -9.23%, the net income CAGR is -35.51%, and the EPS CAGR is -38.51%. These negative growth rates indicate a deteriorating financial situation.
2. **Technical Indicators**: The stock's technical indicators also suggest caution. The MACD is at 0.21, which could indicate a potential reversal or a pause in the stock's trend. However, the RSI is at 88.28, which is considered overbought and suggests that the stock may be due for a pullback.
|code|Ticker|Name|Date|Boll|RSI|KDJ|MACD|market_code|
|---|---|---|---|---|---|---|---|---|
|JMIA|JMIA.N|Jumia Technologies|20250701|3.4025|88.2812|113.1425|0.2109|169|
3. **Market Sentiment and Potential Takeover**: While there has been a reported interest in a potential takeover by Axian Telecom, there is no definitive agreement, and the company's stock price is still reflecting the risks associated with its current financial and operational inefficiencies.
4. **Dividend and Share Buybacks**: There is no record of dividend payments or share buybacks, which are often indicators of a company's financial health and management's commitment to shareholder value.
In conclusion, Jumia Technologies AG currently presents too many risks for investors to consider it a worthwhile purchase. The company's financial performance is declining, and its technical indicators and market sentiment do not strongly support a buying thesis. Investors should exercise caution and consider these factors before making any investment decisions in JMIA.