Prosegur Compania de Seguridad (PSG) AI Stock Analysis

• Market Cap: €1.38B
• Dividend Yield: 4.76%
• Average Volume (3M): 256.73K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.72
• Revenue Growth: 12.67%
• EPS Growth: 81.37%
• Country: ES
• Employees: 152,384
• Sector: Services
• Sector Strength: N/A
• Industry: Security & Protection Services
• EPS (TTM): 0.06
• Shares Outstanding: 545,026,860
• 10 Day Avg. Volume: 485,935
• 30 Day Avg. Volume: 256,733
• 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: €2.78
• Price Target Upside: 4.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: €2.50 ▼(-6.02% Downside)

Prosegur Compania de Seguridad's overall stock score is driven by its financial performance and valuation. While the company shows strong cash flow and a reasonable P/E ratio with an attractive dividend yield, it faces significant technical challenges with bearish indicators and high leverage. Addressing these financial risks and improving revenue growth are crucial for enhancing its stock performance.

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 Compania de Seguridad (PSG) generates revenue through a diversified business model centered around its three main divisions. The security services division is a major revenue driver, offering customized security solutions such as manned guarding, electronic security systems, and integrated security management. The cash management division contributes significantly by providing services like cash-in-transit, cash processing, and ATM management, which are critical for financial institutions and retailers. Additionally, the alarms segment generates income through the sale, installation, and monitoring of security systems for residential and commercial customers. Strategic partnerships with technology providers enhance their service offerings, while the company's global presence allows it to tap into various markets, further bolstering its financial performance.

Prosegur Compania de Seguridad Financial Statement Overview

Summary

Prosegur demonstrates strong revenue growth and operational efficiency, particularly highlighted by its high gross profit margins. However, profitability remains an area for improvement with low net profit margins. The balance sheet reveals substantial leverage, necessitating cautious financial management. Cash flows are solid, but enhancing free cash flow growth could strengthen financial flexibility.

Income Statement

Prosegur shows a robust revenue growth trajectory with a TTM revenue of €5.04 billion, up from €4.31 billion in 2023, reflecting a growth rate of 16.88%. The gross profit margin for TTM stands at an impressive 84.68%, indicating efficient cost management. The net profit margin improved to 1.78% in TTM, though it remains relatively low, suggesting room for profitability enhancement. EBIT and EBITDA margins are healthy at 7.60% and 11.59% respectively, showcasing strong operational performance.

Balance Sheet

The balance sheet reflects a moderate position with a debt-to-equity ratio of 1.47, indicating significant leverage. However, the equity ratio is 18.08%, suggesting a reasonable proportion of equity financing. Return on equity for TTM is 10.58%, reflecting adequate profitability relative to shareholders' equity. The company's leverage might pose risks if not managed carefully, though the equity position provides some stability.

Cash Flow

Prosegur's cash flow statement indicates a positive but modest free cash flow growth rate of -23.70% from 2023 to 2024. The operating cash flow to net income ratio is robust at 3.70 in TTM, indicating strong cash generation relative to profits. The free cash flow to net income ratio is 1.35, emphasizing efficient cash conversion. The overall cash position is stable, but improvement in free cash flow growth is needed.

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	2.47B	1.72B	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: Neutral
• Last Price: 2.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:PSG, the sentiment is Neutral. The current price of 2.66 is below the 20-day moving average (MA) of 2.85, below the 50-day MA of 2.84, and above the 200-day MA of 2.20, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 38.53 is Neutral, neither overbought nor oversold. The STOCH value of 11.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
PSG	58 Neutral	€1.38B	13.12	14.39%	4.76%	12.67%	81.37%
Sector *	54 Neutral	C$42.56M	56.27	3.63%	4.33%	-3.64%	-47.26%
0HAC	―	€15.48B	17.60	19.75%	―	―	―
0K97	―	€1.97B	16.61	-6.79%	―	―	―
0HAA	―	€5.05B	21.40	5.28%	―	―	―
0MKG	―	€526.48M	0.73	-7.07%	―	―	―
0OFU	―	€2.73B	29.44	9.65%	―	―	―

Prosegur Compania de Seguridad Corporate Events

Prosegur Approves Dividend Distribution at 2025 Shareholders’ Meeting

Prosegur Compañía de Seguridad, S.A. announced that its 2025 General Shareholders’ Meeting approved all proposed resolutions, including a dividend distribution from voluntary reserves. The dividend, amounting to 0.1593 euros per share and totaling up to 86,822,779.75 euros, will be paid in December 2025 through IBERCLEAR, with applicable withholdings.