Prosegur Compania de Seguridad (PSG) AI Stock Analysis

• Market Cap: €1.53B
• Dividend Yield: 4.44%
• Average Volume (3M): 188.01K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.50
• Revenue Growth: 10.40%
• EPS Growth: 62.70%
• Country: ES
• Employees: 152,384
• Sector: Services
• Sector Strength: N/A
• Industry: Security & Protection Services
• EPS (TTM): 0.05
• Shares Outstanding: 545,026,860
• 10 Day Avg. Volume: 152,506
• 30 Day Avg. Volume: 188,011
• PEG Ratio: 0.46
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 5.69
• 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: €3.40
• Price Target Upside: 18.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €3.00 ▲(4.90% Upside)

Prosegur Compania de Seguridad's stock is supported by strong technical momentum and a reasonable valuation with an attractive dividend yield. However, financial performance is hindered by high leverage and declining revenue growth, which are significant risks that need to be addressed.

Positive Factors

Cash Generation

Strong free cash flow growth indicates robust cash generation capabilities, enhancing financial flexibility and supporting future investments.

Gross Profit Margins

High gross profit margins reflect efficient cost management, allowing for competitive pricing and potential reinvestment into business growth.

Market Position

As a global leader in security services, Prosegur benefits from a strong market position, enabling it to leverage scale and expand its client base.

Negative Factors

Revenue Decline

Declining revenue growth poses a risk to long-term sustainability, potentially impacting market share and profitability if not addressed.

High Leverage

Significant leverage increases financial risk, potentially limiting strategic flexibility and increasing vulnerability to economic downturns.

Low Net Profit Margin

A low net profit margin indicates challenges in converting revenue into profit, which could affect long-term profitability and shareholder returns.

Prosegur Compania de Seguridad Business Overview & Revenue Model

Company Description

Prosegur Compañía de Seguridad, S.A. operates in the private security sector. The company operates through Security, Cash, Cybersecurity, Alarms, and AVOS (added-value outsourcing services) segments. The Security segment offers guarding and protection of premises, goods and individuals, and activities related to technological security solutions. The Cash segment engages in the transportation, storage, safekeeping, counting, and classification of coins and bank notes, deeds, securities, and other items that require special protection due to their economic value or associated risk. The Alarms segment installs and maintains home alarm systems, as well as provides alarm monitoring services for families and businesses. The Cybersecurity segment offers managed detection and response services, managed security services, cyber intelligence services, readteam services, management, risk and compliance, and integration of cybersecurity technology. The AVOS (added-value outsourcing services) segment provides business process outsourcing services to improve operational management through redesign, automation, and digital transformation in financial and insurance companies. It operates in Germany, Spain, France, Luxembourg, Australia, China, the United States, the Philippines, India, Indonesia, Singapore, South Africa, Argentina, Brazil, Chile, Colombia, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Paraguay, Peru, and Uruguay. The company was incorporated in 1976 and is headquartered in Madrid, Spain. Prosegur Compañía de Seguridad, S.A. is a subsidiary of Gubel, S.L.

How the Company Makes Money

Prosegur generates revenue through multiple key streams, primarily from its security services, which include manned guarding, cash handling, and electronic security solutions. The company charges clients for these services based on contractual agreements that often involve recurring monthly fees. Additionally, Prosegur earns revenue from the sale and installation of security technology products, such as surveillance cameras and alarm systems. Significant partnerships with banks and financial institutions enhance its cash in transit services, providing a steady stream of income. Furthermore, Prosegur benefits from economies of scale and operational efficiencies, allowing it to maintain competitive pricing while ensuring profitability.

Prosegur Compania de Seguridad Financial Statement Overview

Summary

Prosegur Compania de Seguridad shows strong gross profit margins and cash flow generation, but faces challenges with declining revenue growth and high leverage. The company needs to address its debt levels to mitigate financial risk and improve profitability.

Income Statement

Prosegur Compania de Seguridad shows a mixed performance in its income statement. The company has a strong gross profit margin of 40.05% in TTM, indicating efficient cost management. However, the net profit margin is relatively low at 2.08%, suggesting challenges in converting revenue into profit. The revenue growth rate is negative at -18% for TTM, indicating a decline in sales. EBIT and EBITDA margins are moderate, reflecting stable operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.15 in TTM, indicating significant leverage and potential financial risk. Return on equity is moderate at 13.37%, showing decent profitability relative to shareholder equity. The equity ratio is not provided, but the high leverage suggests a lower proportion of equity in the capital structure.

Cash Flow

Cash flow analysis shows strong free cash flow growth of 97.8% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.14, suggesting that operating cash flow is not significantly higher than net income, which could be a concern. The free cash flow to net income ratio is 0.37, reflecting a reasonable conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.03B	4.91B	4.31B	4.17B	3.50B	3.57B
Gross Profit	2.01B	1.23B	874.15M	992.24M	808.21M	809.70M
EBITDA	500.09M	507.32M	417.46M	451.15M	364.17M	740.04M
Net Income	104.68M	78.08M	65.54M	64.68M	40.99M	331.25M
Balance Sheet
Total Assets	4.62B	4.63B	4.04B	4.83B	3.82B	3.91B
Cash, Cash Equivalents and Short-Term Investments	829.33M	700.01M	440.45M	1.18B	585.90M	917.01M
Total Debt	2.18B	1.96B	1.82B	2.54B	1.78B	1.95B
Total Liabilities	3.86B	3.74B	3.33B	4.04B	3.11B	3.20B
Stockholders Equity	691.08M	811.01M	681.46M	756.11M	692.39M	695.21M
Cash Flow
Free Cash Flow	121.87M	158.17M	139.41M	139.76M	186.17M	179.93M
Operating Cash Flow	330.65M	352.50M	293.20M	307.57M	330.30M	324.31M
Investing Cash Flow	-167.92M	-169.00M	-185.09M	-145.45M	-25.70M	-21.32M
Financing Cash Flow	274.40M	103.42M	-791.54M	529.79M	-462.24M	18.38M

Prosegur Compania de Seguridad Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:PSG, the sentiment is Positive. The current price of 2.86 is above the 20-day moving average (MA) of 2.70, above the 50-day MA of 2.80, and above the 200-day MA of 2.61, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.83 is Neutral, neither overbought nor oversold. The STOCH value of 87.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:PSG.

Prosegur Compania de Seguridad Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACS	70 Outperform	€19.06B	21.68	19.75%	2.52%	25.47%	7.63%
FCC	70 Outperform	€5.39B	22.76	5.28%	4.33%	5.00%	-64.19%
PSG	69 Neutral	€1.53B	14.06	14.39%	4.44%	10.40%	62.70%
SCYR	65 Neutral	€2.98B	32.17	10.80%	5.25%	2.03%	-32.59%
ENO	62 Neutral	€2.44B	―	-6.79%	28.07%	11.61%	-212.68%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
OHLA	41 Neutral	€610.08M	-8.60	-6.41%	―	1.39%	72.34%