Jumia Technologies AG (NYSE:JMIA) Financial Performance Analysis

• Jumia Technologies AG (NYSE:JMIA) has a Return on Invested Capital (ROIC) of -93.11%, indicating it is not generating sufficient returns to cover its cost of capital.
• Comparatively, fuboTV Inc. (FUBO) has a less negative ROIC to WACC ratio, suggesting it is closer to breaking even than Jumia.
• Blink Charging Co. (BLNK) exhibits the lowest ROIC to WACC ratio at -8.09, highlighting significant inefficiencies similar to Jumia's.

Jumia Technologies AG (NYSE:JMIA) is a leading e-commerce platform in Africa, offering a wide range of products and services. The company aims to connect sellers with consumers, providing a convenient online shopping experience. Despite its ambitious goals, Jumia faces stiff competition from other e-commerce giants and local players in the African market.

In evaluating Jumia's financial performance, the Return on Invested Capital (ROIC) is a critical metric. Jumia's ROIC stands at a concerning -93.11%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 18.35%. This indicates that Jumia is not generating sufficient returns to cover its cost of capital, highlighting inefficiencies in its operations.

Comparing Jumia to its peers, fuboTV Inc. (FUBO) has a ROIC of -0.02% and a WACC of 12.13%, resulting in a ROIC to WACC ratio of -0.0018. Although still negative, FUBO's ratio is the least negative among the group, suggesting it is closer to breaking even. This positions FUBO as a relatively better performer in terms of capital efficiency.

On the other hand, Blink Charging Co. (BLNK) has the lowest ROIC to WACC ratio at -8.09, with a ROIC of -139.46% and a WACC of 17.24%. This significant gap indicates that Blink is struggling to generate returns that cover its cost of capital, similar to Jumia's challenges.

Overall, all companies in this analysis, including Jumia, are operating with negative ROICs, meaning they are not covering their cost of capital. However, fuboTV's relatively better ROIC to WACC ratio suggests it may have a better chance of improving its financial performance compared to its peers.