Delivery Hero, a global online delivery platform, has 48% of its 2024 gross merchandise value from Asia, 26% from the Middle East and Africa, 18% from Europe, and 8% from Latin America. The stock is down 12% this year due to weak performance in Asia and lower guidance for fiscal 2025.

Despite market share leadership in some regions, Delivery Hero faces intense competition and struggles in Asia. Revenue is projected to grow at a compound annual rate of 13.9% over five years, with an expected operating margin of 1.3% by fiscal 2029.

Morningstar gives Delivery Hero a no moat rating, fair value estimate of EUR 30.50, and a Standard Morningstar Capital Allocation Rating. The company is expected to become profitable on an EBIT basis by fiscal 2026, reaching a target of 5%-8% adjusted EBITDA as a percentage of GMV by 2030.

Read more at Morningstar: Transfer Coverage With EUR 30.50 Fair Value and No Moat Rating