Are JUMIA investors starting to hold back?
 | By Raphi Shpitalnik | Macroaxis Story |
JUMIA TECHNOLOGIES Invested Capital is expected to increase significantly based on the last few years of reporting. The past year's Invested Capital was at 29.24 Million. The current year Working Capital is expected to grow to about 184.5 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are expected to decline to (232.7 M). The stock is undergoing an active upward rally. The fundamental aim of this short article is to break down our forecasting of JUMIA for investors. We will try to forecast JUMIA TECHNOLOGIES outlook for August. JUMIA TECHNOLOGIES is very risky given 1 month investment horizon. JUMIA TECHNOLOGIES holds Efficiency (Sharpe) Ratio of 0.17, which attests that the entity had 0.17% of return per unit of volatility over the last month. Our approach towards determining the risk of a stock is to use both market data as well as company specific technical data. We were able to analyze twenty-one different technical indicators, which can help you to evaluate if expected returns of 1.83% are justified by taking the suggested risk. Use JUMIA TECHNOLOGIES AG market risk adjusted performance of 2.01, and risk adjusted performance of 0.3287 to evaluate company specific risk that cannot be diversified away.
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Reviewed by Ellen Johnson
JUMIA TECHNOLOGIES holds a performance score of 11 on a scale of zero to a hundred. The company retains a Market Volatility (i.e. Beta) of 0.973, which attests to possible diversification benefits within a given portfolio. Let's try to break down what JUMIA's beta means in this case. JUMIA TECHNOLOGIES returns are very sensitive to returns on the market. As the market goes up or down, JUMIA TECHNOLOGIES is expected to follow. 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 performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if JUMIA TECHNOLOGIES expected return of 1.83 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use JUMIA TECHNOLOGIES AG maximum drawdown, and the relationship between the information ratio and downside variance to analyze future returns on JUMIA TECHNOLOGIES AG.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Jumia Technologies. Your research has to be compared to or analyzed against Jumia Technologies' peers to derive any actionable benefits. When done correctly, Jumia Technologies' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Jumia Technologies.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Jumia Technologies. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Jumia Technologies
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Jumia Technologies' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
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. Financial leverage can amplify the potential profits to Jumia Technologies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Jumia Technologies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Jumia Technologies's total debt and its cash.
Jumia Technologies Gross Profit
Jumia Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Jumia Technologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Jumia Technologies Gross Profit growth over the last 10 years. Please check Jumia Technologies' gross profit and other fundamental indicators for more details.
Breaking down the case for Jumia Technologies
JUMIA TECHNOLOGIES maintains current asset of 238.99 m. The entity reported previous year 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. JUMIA TECHNOLOGIES AG is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about JUMIA TECHNOLOGIES implied risk. JUMIA TECHNOLOGIES Earnings before Tax is somewhat stable at the moment. Further, JUMIA TECHNOLOGIES Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 4 years. The current value of JUMIA TECHNOLOGIES Earnings Before Interest Taxes and Depreciation Amortization EBITDA is -232,655,579.
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