Prosegur Compania de Seguridad (PSG) AI Stock Analysis

• Market Cap: €1.57B
• Dividend Yield: 4.2%
• Average Volume (3M): 238.01K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.67
• Revenue Growth: 15.36%
• EPS Growth: 28.72%
• Country: ES
• Employees: 152,384
• Sector: Industrials
• Sector Strength: 89
• Industry: Security & Protection Services
• EPS (TTM): 0.05
• Shares Outstanding: 545,026,860
• 10 Day Avg. Volume: 131,170
• 30 Day Avg. Volume: 238,014
• PEG Ratio: 0.60
• Price to Book (P/B): 2.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.50
• 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: -6.71% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: €3.00 ▲(0.67%Upside)

Prosegur's strong revenue growth and operational efficiency are significant strengths, supported by positive technical indicators. However, the company's leverage and relatively low profitability are key risks that need addressing. Valuation metrics are reasonable, with a decent dividend yield adding appeal. Overall, Prosegur shows promise but must manage financial risks to sustain growth.

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 makes money through a diversified revenue model that includes several key streams. The primary source of income is its integrated security services, which provide on-site guarding, electronic security, and risk management solutions. Additionally, the company generates significant revenue from its cash in transit services, handling the secure transportation of cash and valuables for financial institutions and retail businesses. Alarm monitoring and response services also contribute to the company's earnings, offering round-the-clock surveillance and rapid response capabilities. Prosegur's ability to innovate and adapt to technological advancements in the security field, alongside strategic partnerships with technology providers, enhances its service offerings and bolsters revenue growth.

Prosegur Compania de Seguridad Financial Statement Overview

Summary

Prosegur demonstrates strong revenue growth with a high gross profit margin, indicating efficient operations. However, the net profit margin is relatively low, suggesting the need for profitability improvement. The balance sheet shows significant leverage, which poses risks, though equity financing provides some stability. Cash flows are solid, but free cash flow growth is needed to enhance 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	5.04B	4.91B	4.31B	4.17B	3.50B	3.57B
Gross Profit	4.27B	1.23B	874.15M	992.24M	808.21M	809.70M
EBITDA	475.51M	507.32M	417.46M	451.15M	364.17M	740.04M
Net Income	89.68M	78.08M	65.54M	64.68M	40.99M	331.25M
Balance Sheet
Total Assets	4.69B	4.63B	4.04B	4.83B	3.82B	3.91B
Cash, Cash Equivalents and Short-Term Investments	692.80M	719.41M	440.45M	1.18B	585.90M	917.01M
Total Debt	1.25B	1.96B	1.82B	2.47B	1.72B	1.95B
Total Liabilities	3.75B	3.74B	3.33B	4.04B	3.11B	3.20B
Stockholders Equity	847.60M	811.01M	681.46M	756.11M	692.39M	695.21M
Cash Flow
Free Cash Flow	120.69M	158.17M	139.41M	139.76M	186.17M	179.93M
Operating Cash Flow	331.96M	352.50M	293.20M	307.57M	330.30M	324.31M
Investing Cash Flow	-140.40M	-169.00M	-185.09M	-145.45M	-25.70M	-21.32M
Financing Cash Flow	106.82M	103.42M	-791.54M	529.79M	-462.24M	18.38M

Prosegur Compania de Seguridad Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.98
• 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 2.98 is above the 20-day moving average (MA) of 2.86, above the 50-day MA of 2.76, and above the 200-day MA of 2.08, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 64.29 is Neutral, neither overbought nor oversold. The STOCH value of 87.06 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
PSG	75 Outperform	€1.57B	17.45	10.72%	4.20%	15.36%	28.72%
Sector *	65 Neutral	$10.75B	15.72	5.20%	1.90%	3.09%	-27.42%
0HAC		€14.69B	17.44	16.48%	5.53%	―	―
0K97		€1.89B	16.61	-11.39%	28.06%	―	―
0HAA		€5.29B	12.04	8.78%	4.30%	―	―
0MKG		€444.95M	0.73	-11.26%	―	―	―
0OFU		€2.76B	23.42	12.85%	1.27%	―	―

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.