Promotora de Informaciones (PRS) AI Stock Analysis

• Market Cap: €484.52M
• Dividend Yield: N/A
• Average Volume (3M): 107.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: -1.03%
• EPS Growth: 59.06%
• Country: ES
• Employees: 7,295
• Sector: Services
• Sector Strength: N/A
• Industry: Entertainment
• EPS (TTM): -0.01
• Shares Outstanding: 1,349,043,500
• 10 Day Avg. Volume: 89,441
• 30 Day Avg. Volume: 107,524
• PEG Ratio: 0.42
• Price to Book (P/B): -0.91
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 4.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: €0.50 ▲(38.89% Upside)

The overall stock score is primarily impacted by the company's financial instability, with significant leverage and declining revenues. Technical indicators provide some neutral to slightly positive signals, but the negative P/E ratio highlights valuation concerns. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, which can support long-term profitability despite revenue challenges.

Operational Efficiency

Moderate EBIT and EBITDA margins suggest operational efficiency, which can help the company manage costs and improve profitability over time.

Cash Flow Coverage

Positive operating cash flow indicates the company's ability to cover its net income losses, providing a buffer for financial stability and potential reinvestment.

Negative Factors

Revenue Decline

A significant decline in revenue growth poses a risk to long-term sustainability, potentially impacting market position and competitive strength.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities.

Negative Free Cash Flow Growth

Declining free cash flow growth indicates challenges in cash generation, which can hinder the company's ability to fund operations and strategic initiatives.

Promotora de Informaciones Business Overview & Revenue Model

Company Description

Promotora de Informaciones (PRS) is a dynamic media and information services company specializing in providing market research, advertising, and digital content solutions. Operating primarily in the media and advertising sectors, PRS offers a range of services including market analysis, promotional strategies, and digital marketing services to businesses across various industries. With a commitment to delivering innovative and data-driven solutions, PRS aims to enhance brand visibility and consumer engagement for its clients.

How the Company Makes Money

Promotora de Informaciones generates revenue through multiple streams including market research services, where clients pay for in-depth analyses and insights into consumer behavior and market trends. Additionally, the company earns income from advertising services, creating tailored promotional campaigns for businesses that pay for placement and exposure across various platforms. The digital content solutions offered by PRS also contribute significantly to its revenue, as businesses are willing to invest in high-quality digital assets to enhance their online presence. Strategic partnerships with media outlets and digital platforms further bolster PRS's earnings, allowing for expanded reach and collaborative marketing opportunities.

Promotora de Informaciones Financial Statement Overview

Summary

Promotora de Informaciones faces significant financial challenges with declining revenues and profitability issues. High leverage and negative equity raise concerns about financial stability. While operating cash flow remains positive, the decline in free cash flow growth indicates cash management issues. The company needs to address its revenue decline and leverage to improve its financial health.

Income Statement

Promotora de Informaciones has shown a declining revenue trend with a negative revenue growth rate of -48.5% in the TTM period. The gross profit margin remains strong at 74.76%, but the net profit margin is negative at -1.68%, indicating profitability challenges. The EBIT and EBITDA margins are moderate at 10.56% and 18.47%, respectively, suggesting some operational efficiency but not enough to offset the net losses.

Balance Sheet

The company has a high debt-to-equity ratio of -2.24, indicating significant leverage and financial risk. The negative stockholders' equity suggests potential solvency issues. Return on equity is low at 3.93%, reflecting limited returns for shareholders. The equity ratio is negative due to negative equity, highlighting financial instability.

Cash Flow

Operating cash flow is positive, with a coverage ratio of 0.54, indicating some ability to cover net income losses. However, free cash flow growth is negative at -89.2%, showing a decline in cash generation. The free cash flow to net income ratio is 82.2%, suggesting that cash flow is relatively strong compared to net income, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	891.02M	880.61M	929.44M	830.76M	729.35M	690.94M
Gross Profit	666.13M	770.41M	783.13M	703.12M	626.26M	585.01M
EBITDA	163.47M	169.11M	161.09M	188.26M	55.30M	42.60M
Net Income	-14.95M	-11.57M	-32.51M	-12.95M	-106.51M	89.74M
Balance Sheet
Total Assets	806.87M	880.07M	974.77M	982.67M	878.28M	971.72M
Cash, Cash Equivalents and Short-Term Investments	130.43M	156.92M	178.24M	189.91M	159.30M	229.60M
Total Debt	860.81M	888.52M	988.21M	1.08B	1.02B	1.03B
Total Liabilities	1.18B	1.25B	1.40B	1.51B	1.39B	1.37B
Stockholders Equity	-383.73M	-382.12M	-442.77M	-546.24M	-556.76M	-449.25M
Cash Flow
Free Cash Flow	144.33M	81.38M	82.94M	55.41M	33.40M	8.75M
Operating Cash Flow	175.57M	127.41M	126.39M	107.21M	78.66M	54.16M
Investing Cash Flow	-45.99M	-24.71M	-30.08M	-50.41M	-47.72M	391.50M
Financing Cash Flow	-90.01M	-115.03M	-111.22M	-40.12M	-86.52M	-374.19M

Promotora de Informaciones Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:PRS, the sentiment is Negative. The current price of 0.36 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.37, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 48.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:PRS.

Promotora de Informaciones Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A3M	69 Neutral	€1.18B	10.22	14.87%	12.31%	-3.21%	-36.23%
VOC	56 Neutral	€75.93M	-0.99	-63.51%	5.70%	-6.41%	-905.11%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
PRS	48 Neutral	€484.52M	-27.48	―	―	-1.03%	59.06%