Hepsiburada (NasdaqGS:HEPS) Trades at 0.5x Sales with 27.7% Projected Annual Revenue Growth Heading into Earnings

D-Market Elektronik Hizmetler ve Ticaret (NasdaqGS:HEPS) remains unprofitable, with losses having widened over the past five years at an average rate of 4.4% annually. Despite the ongoing lack of positive net margin, analysts now project a transition to profitability within three years, while revenue is forecast to accelerate at 27.7% per year, well ahead of the broader US market’s 10.4% pace. Coupled with earnings growth expectations of 143.66% per year and a share price of $2.31 trading at a substantial discount to the estimated fair value of $5.20, sentiment around HEPS is turning positive even as the company works toward its first profit.

See our full analysis for D-Market Elektronik Hizmetler ve Ticaret.

The next section examines how these headline earnings compare with the most widely circulated market narratives and which perspectives could be subject to change as a result.

See what the community is saying about D-Market Elektronik Hizmetler ve Ticaret

Margins Move Toward Positive Territory

• Profit margins are expected to climb from -3.4% today to 6.1% within three years, showing significant progress toward positive earnings as projected by analysts.
• Analysts' consensus view notes this margin expansion springs from a combination of factors:
  • Integration of the Hepsipay one-click checkout, now used by 140 key accounts, allows more transactions to shift into higher-margin financial services, directly supporting margin improvement.
  • HepsiJet's off-platform delivery surge, up 89% year-on-year, brings additional revenue streams that reduce reliance on lower-margin marketplace operations and boosts the pathway toward profitability.
• Momentum in lending solutions, with total lending volume reaching TRY16.2 billion in 2024, a 2.6x increase versus the prior year, provides another high-margin business stream that strengthens the move into profitability. 📊 Read the full D-Market Elektronik Hizmetler ve Ticaret Consensus Narrative.

Share Count Reduction and Earnings Upside

• The total number of shares outstanding is forecast to decline by 1.71% annually for the next three years, which could further boost per-share earnings as the company heads toward projected earnings per share of TRY4.55 by September 2028.
• Analysts' consensus view highlights this shrinking share base as a catalyst for future upside:
  • Strategic partnerships, including the stake transition to Kaspi and a loyalty program collaboration with Warner Bros., aim to accelerate customer retention and increase transaction frequency, directly funneling into both revenue and per-share earnings.
  • Bears raise caution about potential constraints from rising operating expenses and macroeconomic headwinds at the start of 2025, but consensus projections hold that operational efficiency gains may counter much of this pressure.

Valuation Gap Remains Wide

• HEPS trades at a Price-to-Sales ratio of 0.5x, well below the industry average of 1.5x and the peer average of 2.5x, while its $2.31 share price sits far below both the DCF fair value of $5.20 and the analyst target price of 4.03.
• Analysts’ consensus view indicates this wide valuation gap is anchored in strong growth forecasts and a path to profitability:
  • The market is pricing HEPS well below both calculated fair value and peer valuations, despite forecasts for 143.66% annual earnings growth, suggesting investors may still be discounting macroeconomic or execution risk.
  • If the company reaches the projected PE ratio of 9.4x on 2028 earnings, the current share price offers considerable headroom for rerating if margin and revenue gains materialize as expected.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for D-Market Elektronik Hizmetler ve Ticaret on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Do the figures suggest another story to you? Share your viewpoint and shape your own narrative in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding D-Market Elektronik Hizmetler ve Ticaret.

See What Else Is Out There

HEPS’s recent progress toward profitability still comes with uncertainty from volatile margins, macroeconomic headwinds, and ongoing losses that are not yet fully resolved.

If steady compounding is your priority, use our stable growth stocks screener (2078 results) to spot companies that have consistently delivered growing revenue and earnings regardless of the market cycle.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com