Jumia Technologies AG (NYSE:JMIA) Financial Performance and Competitive Analysis

• Jumia Technologies AG's Return on Invested Capital (ROIC) is -93.11%, significantly below its Weighted Average Cost of Capital (WACC) of 18.59%, indicating inefficiencies in capital utilization.
• Compared to peers, fuboTV Inc. (FUBO) has the least negative ROIC to WACC ratio, suggesting it is closer to achieving a balance between returns and capital costs.
• Blink Charging Co. (BLNK) exhibits the most negative ROIC to WACC ratio among the peers, highlighting significant challenges in capital efficiency.

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.