Jumia Technologies AG (NYSE:JMIA) has a ROIC of -93.11% and a WACC of 18.16%, indicating poor capital efficiency.
fuboTV Inc. shows the least negative ROIC to WACC ratio among peers, suggesting better capital management.
Blink Charging Co. has the most negative ROIC to WACC ratio, 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, with peers like fuboTV Inc., Fastly, Inc., Nano Dimension Ltd., Workhorse Group Inc., and Blink Charging Co. These companies, although in different sectors, provide a basis for comparison in terms of financial metrics like ROIC and WACC.
Jumia’s ROIC of -93.11% is significantly lower than its WACC of 18.16%, resulting in a ROIC to WACC ratio of -5.13. This indicates that Jumia is not effectively using its capital to generate returns, as its returns are far below the cost of capital. This negative ratio suggests challenges in capital efficiency, which is crucial for long-term sustainability.
In comparison, fuboTV Inc. has a ROIC of -0.02% and a WACC of 12.11%, leading to a ROIC to WACC ratio of -0.0018. Although still negative, fuboTV’s ratio is the least negative among the peers, indicating it is closer to covering its cost of capital. This suggests that fuboTV is in a relatively better position in terms of capital efficiency compared to Jumia.
Fastly, Inc. and Nano Dimension Ltd. also show negative ROIC to WACC ratios of -1.30 and -0.83, respectively. These figures highlight that these companies, like Jumia, are struggling to generate returns that meet or exceed their cost of capital. However, their ratios are less negative than Jumia’s, indicating slightly better capital management.
Blink Charging Co. has the most negative ROIC to WACC ratio of -7.82, with a ROIC of -139.46% and a WACC of 17.83%. This suggests even greater challenges in capital efficiency compared to Jumia. Despite the negative ratios across the board, fuboTV’s relatively better position highlights the importance of managing capital effectively to improve financial performance.
