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Prosus (NL:PRX)
:PRX
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Prosus
(PRX)
Select Model
Select Model
Rating:77Outperform
Price Target:
€67.00
▲(24.58% Upside)
Prosus demonstrates strong financial performance and strategic growth, supported by positive earnings call insights. Technical indicators suggest stable momentum, while valuation metrics indicate reasonable pricing. Challenges include operational efficiency and regulatory hurdles.
Positive Factors
Revenue Growth
Prosus's strong revenue growth, outperforming peers, indicates robust market demand and effective business strategies, supporting long-term expansion.
Cash Position and M&A Potential
A strong cash position enhances Prosus's ability to pursue strategic acquisitions, fostering growth and competitive advantage in the tech sector.
Focus on AI and Innovation
Investing in AI and innovation positions Prosus to leverage cutting-edge technology, improving operational efficiencies and customer engagement long-term.
Negative Factors
European Regulatory Hurdles
Regulatory hurdles in Europe could delay strategic initiatives and increase compliance costs, impacting Prosus's operational agility and growth plans.
Competition in Brazilian Market
Rising competition in Brazil, a key market, could pressure margins and market share for Prosus's iFood, affecting profitability and growth prospects.
Cultural Change Challenges
Cultural transformation challenges may hinder operational efficiency and employee engagement, potentially impacting long-term strategic execution.
Prosus (PRX) vs. iShares MSCI Netherlands ETF (EWN)
Market Cap
€117.47B
Dividend Yield0.38%
Average Volume (3M)2.40M
Price to Earnings (P/E)10.2
Beta (1Y)1.46
Revenue Growth13.91%
EPS Growth80.97%
CountryNL
Employees21,048
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)1.52
Shares Outstanding2,378,947,800
10 Day Avg. Volume1,968,335
30 Day Avg. Volume2,396,599
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)2.17
Price to Sales (P/S)17.95
P/FCF Ratio61.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€69.38Price Target Upside29.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Prosus Business Overview & Revenue Model
Company DescriptionProsus N.V. engages in the e-commerce and internet businesses. The company operates internet platforms, such as classifieds, payments and fintech, food delivery, travel, education technology, etail, health, ventures, social, and other internet platforms. It has operations in Latin and North America, the Middle East, Africa, Europe, Asia, and internationally. The company was formerly known as Myriad International Holdings N.V. and changed its name to Prosus N.V. in August 2019. Prosus N.V. was incorporated in 1994 and is headquartered in Amsterdam, the Netherlands. Prosus N.V. is a subsidiary of Naspers Limited.
How the Company Makes MoneyProsus generates revenue primarily through its diverse portfolio of online platforms and services. Key revenue streams include online classifieds, where the company charges listing fees and advertisement revenues, particularly through platforms like OLX. In the food delivery sector, Prosus earns commissions from restaurants and delivery fees from customers via its investments in companies like Delivery Hero. Additionally, the fintech segment contributes significantly to earnings through transaction fees and payment processing services offered by PayU. The company also benefits from its equity stakes in successful technology firms, which provide dividends and capital gains as these investments grow. Strategic partnerships with various e-commerce and technology companies further enhance its revenue potential, allowing Prosus to leverage synergies across its platforms.
Prosus Earnings Call Summary
Earnings Call Date:Jun 23, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 29, 2026
Earnings Call Sentiment Positive
The earnings call reflects an overall positive sentiment with strong financial performance, strategic growth initiatives, and effective cost management. While there are challenges related to competition and regulatory hurdles, the company's focus on innovation and cultural transformation positions it well for future success.Q4-2025 Updates
Positive Updates
Exceeded Revenue Target
Prosus reported revenue of $443 million, surpassing the initial target of $400 million.
Significant Dividend Increase
The company announced a 100% increase in dividends, signaling strong financial health.
Strong Growth in iFood
The iFood business achieved an adjusted EBIT margin of 28%, following a 50% revenue growth.
OLX Profit Surge
OLX's profits grew by 61% on the back of an 18% increase in top-line revenue.
Cash Position and M&A Firepower
The company maintains a significant cash reserve of $11 billion post-commitments, indicating strong M&A potential.
Positive Free Cash Flow
Prosus reported positive free cash flow, highlighting improvements in cash generation and operational efficiency.
Focus on AI and Innovation
Strategic emphasis on AI and innovation to drive future growth, with plans for proprietary technology and improved customer insights.
Negative Updates
European Regulatory Hurdles
The company faces potential challenges with European Union regulatory reviews concerning the Just Eat acquisition.
Competition and Market Challenges
Concerns over increased competition in the Brazilian market, particularly from Meituan, potentially impacting iFood's margins.
Cultural Change Challenges
The ongoing cultural transformation is acknowledged as a complex and lengthy process, yet crucial for operational success.
Company Guidance
In the recent results call for Prosus, CEO Fabricio Bloisi highlighted several key metrics and strategic initiatives driving the company's positive performance. Notably, Prosus exceeded its financial target by delivering $443 million, surpassing the promised $400 million. The company also achieved a significant 100% increase in dividends, indicating strong financial health and confidence in future growth. Prosus experienced a 21% growth rate, twice as fast as most peers, which translated into excellent operating leverage across its businesses. Specific examples include the iFood business, which achieved an adjusted EBIT margin of 28% following a 50% revenue growth, and the OLX online classifieds business, which saw an 18% increase in top-line growth and a 61% rise in profits over the period. Through strategic operational efficiencies, such as reducing corporate costs by 1%, Prosus is poised for continued growth and profitability, with a focus on becoming the leading lifestyle e-commerce brand in Latin America, Europe, and India. Looking ahead, Prosus plans to further its success by leveraging AI-driven efficiencies and expanding its ecosystem across its core markets.Prosus Financial Statement Overview
Summary
Prosus shows robust revenue growth and a strong balance sheet, with impressive net profit margins and effective equity management. However, fluctuating EBIT margins and cash flow variability suggest potential operational and cash management challenges.Income Statement
Prosus shows a robust revenue growth trajectory over the years with a significant revenue increase from previous periods. Gross Profit Margin is strong, indicating efficient cost management, though fluctuating EBIT margins highlight potential volatility in operational efficiency. The Net Profit Margin is impressive, reflecting a strong bottom line despite occasionally negative EBIT, largely due to non-operational income sources.Balance Sheet
The company's balance sheet is healthy, with a strong equity base and a manageable Debt-to-Equity ratio, indicating prudent financial leverage. The Equity Ratio is favorable, reflecting a solid asset-backed financial position. However, fluctuations in net debt suggest varying cash management strategies which could pose risks if not stabilized.Cash Flow
Prosus demonstrates strong Free Cash Flow growth in the latest period, enhancing its cash position. Operating Cash Flow to Net Income is positive, indicating good cash conversion, although historical variability in cash flows suggests potential volatility. Free Cash Flow to Net Income is improving, supporting sustainable financial performance.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.40B | 6.17B | 5.47B | 5.76B | 6.87B | 5.12B |
| Gross Profit | 2.69B | 2.62B | 2.22B | 1.66B | 2.06B | 1.66B |
| EBITDA | 7.66B | 13.37B | 7.75B | 10.48B | 19.16B | -831.00M |
| Net Income | 12.77B | 12.37B | 6.61B | 10.11B | 18.73B | 7.45B |
Balance Sheet | ||||||
| Total Assets | 79.60B | 72.59B | 61.82B | 65.08B | 71.34B | 55.73B |
| Cash, Cash Equivalents and Short-Term Investments | 22.20B | 18.90B | 18.99B | 20.87B | 13.57B | 6.03B |
| Total Debt | 17.82B | 16.45B | 16.33B | 16.27B | 16.08B | 8.20B |
| Total Liabilities | 24.17B | 21.46B | 20.53B | 20.45B | 20.82B | 12.54B |
| Stockholders Equity | 55.34B | 51.05B | 41.26B | 44.59B | 50.42B | 43.07B |
Cash Flow | ||||||
| Free Cash Flow | 1.73B | 1.81B | 978.00M | -383.00M | -847.00M | 54.00M |
| Operating Cash Flow | 1.81B | 1.92B | 1.04B | -120.00M | -605.00M | 159.00M |
| Investing Cash Flow | 14.29B | 11.88B | 209.00M | 12.64B | 4.39B | -3.22B |
| Financing Cash Flow | -9.01B | -8.74B | -8.12B | -12.45B | 2.40B | 2.45B |
Prosus Technical Analysis
Neutral
53.78
Price Trends
55.60
Negative
56.13
Negative
50.96
Positive
Market Momentum
-0.22
Negative
49.63
Neutral
47.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:PRX, the sentiment is Neutral. The current price of 53.78 is above the 20-day moving average (MA) of 53.10, below the 50-day MA of 55.60, and above the 200-day MA of 50.96, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 49.63 is Neutral, neither overbought nor oversold. The STOCH value of 47.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:PRX.
Prosus Peers Comparison
UnderperformOutperform
Sector (60)
NL:PRX
Prosus
53.78
20.63
62.25%
NL:UMG
Universal Music Group
22.20
-1.39
-5.88%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.