Promotora de Informaciones (PRS) AI Stock Analysis

• Market Cap: €499.32M
• Dividend Yield: N/A
• Average Volume (3M): 100.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -3.40%
• EPS Growth: 50.24%
• Country: ES
• Employees: 7,295
• Sector: Services
• Sector Strength: N/A
• Industry: Entertainment
• EPS (TTM): -0.02
• Shares Outstanding: 1,349,043,500
• 10 Day Avg. Volume: 125,166
• 30 Day Avg. Volume: 100,832
• PEG Ratio: 0.40
• 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: €0.50
• Price Target Upside: 35.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: €0.50 ▲(35.14% Upside)

Promotora de Informaciones faces significant financial challenges, with declining revenues and high leverage being the most impactful factors. Technical analysis shows a neutral trend, while valuation metrics are unattractive due to a negative P/E ratio and no dividend yield. These factors combine to result in a low overall stock score.

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 operational efficiency and stable cash flow generation, but struggles with profitability and high leverage. Negative equity and high debt levels pose significant risks.

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	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	164.59M	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: Positive
• Last Price: 0.37
• 50DMA: Positive
• 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 Positive. The current price of 0.37 is below the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.36, and below the 200-day MA of 0.37, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.06 is Neutral, neither overbought nor oversold. The STOCH value of 66.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	77 Outperform	€1.27B	11.04	14.87%	11.63%	-3.21%	-36.23%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
PRS	48 Neutral	€499.32M	―	―	―	-3.40%	50.24%
VOC	48 Neutral	€76.41M	―	-61.32%	5.71%	-7.49%	-4893.28%