Promotora de Informaciones (PRS) AI Stock Analysis

• Market Cap: €499.32M
• Dividend Yield: N/A
• Average Volume (3M): 59.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -4.40%
• EPS Growth: -3.22%
• Country: ES
• Employees: 7,295
• Sector: Real Estate
• Sector Strength: 56
• Industry: Entertainment
• EPS (TTM): >-0.01
• Shares Outstanding: 1,349,043,500
• 10 Day Avg. Volume: 77,769
• 30 Day Avg. Volume: 59,250
• PEG Ratio: -0.83
• Price to Book (P/B): -1.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.91
• 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: €0.50
• Price Target Upside: 35.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: €0.50 ▲(35.14%Upside)

The overall stock score for Promotora de Informaciones is primarily influenced by its financial performance, highlighting operational efficiency and cash flow strength but offset by high leverage and profitability issues. Technical indicators suggest a cautiously neutral outlook, while valuation concerns due to negative earnings weigh on the stock's attractiveness.

Promotora de Informaciones Business Overview & Revenue Model

Company Description

Promotora de Informaciones, S.A., together with its subsidiaries, engages in the exploitation of media in Spain and internationally. The company provides a range of products and services, including educational content, such as textbooks, digital resources, support material, etc., covering preschool to Bachillerato and vocational training; and books publication services. It also offers technology, training, and assessment services to schools, teachers, and students, as well as advisory services. In addition, the company is involved in the operation of radio broadcasting stations; and a range of activities and events, including concerts, festivals, music awards, debates, and conferences. Further, it sells newspapers and magazines, as well as offers advertising and promotions services. Promotora de Informaciones, S.A. was incorporated in 1972 and is based in Madrid, Spain.

How the Company Makes Money

Promotora de Informaciones, S.A. generates revenue through a multifaceted business model that includes advertising, subscription, and sales of content. A significant portion of its income is derived from advertising, as the company attracts numerous advertisers looking to reach its substantial audience base across its various media platforms. In addition to advertising, PRS also earns from subscription fees for its premium content, particularly in its digital offerings, where it encourages readers to pay for exclusive articles and features. Furthermore, the company benefits from sales of its print publications, although this stream has been declining in favor of digital consumption. Key partnerships with other media firms and content distributors further enhance its revenue, allowing PRS to expand its reach and market presence.

Promotora de Informaciones Financial Statement Overview

Summary

Promotora de Informaciones shows strong operational efficiency and cash flow generation. However, challenges such as negative profitability and high leverage, including a negative equity position, significantly impact financial stability.

Income Statement

Promotora de Informaciones has shown fluctuating revenue trends, with a slight decline in revenue from 2023 to 2024. The gross profit margin is relatively strong at 87.5% in 2024, indicating effective cost management. However, the net profit margin remains negative due to consistent net losses. The EBIT margin improved in 2024, reaching 13.0%, suggesting progress in operational efficiency, though EBITDA margin remains modest at 19.2%.

Balance Sheet

The balance sheet reflects significant financial leverage, with a concerning negative stockholders' equity, indicating solvency risks. The debt-to-equity ratio is not calculable due to negative equity. Total debt has remained high, posing a risk to financial stability. The equity ratio is negative, further highlighting the reliance on debt financing.

Cash Flow

Cash flow from operations has remained stable, with free cash flow showing positive growth in 2024. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to reported losses. However, the free cash flow to net income ratio signals a reliance on cash flow rather than profitability for financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	880.61M	945.65M	830.76M	729.35M	690.94M
Gross Profit	770.41M	783.13M	703.12M	626.26M	585.01M
EBITDA	169.11M	161.09M	147.22M	60.88M	61.46M
Net Income	-11.57M	-32.51M	-12.95M	-106.51M	89.74M
Balance Sheet
Total Assets	880.07M	974.77M	982.67M	878.28M	971.72M
Cash, Cash Equivalents and Short-Term Investments	156.92M	178.24M	189.91M	159.30M	216.73M
Total Debt	888.52M	988.21M	1.10B	1.02B	1.03B
Total Liabilities	1.25B	1.40B	1.51B	1.39B	1.37B
Stockholders Equity	-382.12M	-442.77M	-546.24M	-556.76M	-449.25M
Cash Flow
Free Cash Flow	81.38M	82.94M	55.41M	33.40M	8.75M
Operating Cash Flow	127.41M	126.39M	107.21M	78.66M	54.16M
Investing Cash Flow	-24.71M	-30.08M	-50.41M	-47.72M	425.86M
Financing Cash Flow	-115.03M	-111.22M	-40.12M	-86.52M	-437.65M

Promotora de Informaciones Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 0.37 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.39, and above the 200-day MA of 0.36, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.94 is Neutral, neither overbought nor oversold. The STOCH value of 19.70 is Positive, 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
Sector *	59 Neutral	C$1.25B	-1.04	-8.19%	4.97%	10.83%	-22.67%
PRS	46 Neutral	€499.32M	―		―	-4.40%	-3.22%
0MJT	―	€1.14B	9.42	15.13%	18.50%	―	―
0KDD	―	€76.65M	―	-60.92%	5.86%	―	―

Promotora de Informaciones Corporate Events

PRISA Announces Capital Increase to Facilitate Debt Refinancing

PRISA has announced a capital increase through the issuance of new shares to qualified investors, aiming to raise funds to cancel a junior debt tranche and facilitate the refinancing of its syndicated financial debt. This move is part of PRISA’s ongoing strategy to reduce debt and extend the maturity dates of its financial obligations, thereby improving its financial stability and operational flexibility in the market.