Prosus (PRX) AI Stock Analysis

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Prosus

(OTC:PRX)

Rating:69Neutral

Price Target:―

Prosus has shown strength in revenue growth and strategic initiatives, with a successful IPO and improving free cash flow. Challenges remain in profitability and cash flow consistency, but the company's focus on AI and ecosystem strategy is promising. Technical analysis suggests caution due to bearish indicators. Valuation appears attractive with a low P/E ratio, but modest dividend yield. Overall, the stock has potential for growth but faces notable challenges.

Positive Factors

Earnings

Prosus pre-announced FY25 adjusted EBIT of at least $435m, exceeding its previously announced ambition and significantly above market expectations.

Financial Performance

The FY25 guidance for the consolidated e-commerce portfolio implies a substantial positive swing from previous estimates.

Growth Potential

Prosus has a strong cash balance for mergers and acquisitions, providing significant financial flexibility for future growth.

Negative Factors

Market Expectations

Analysts expect Prosus may give longer-term margin ambitions for Food Delivery and Classifieds, with significant potential for margin expansion in these areas.

Prosus (PRX) vs. iShares MSCI Netherlands ETF (EWN)

Market Cap

$102.42B

Dividend Yield0.21%

Average Volume (3M)2.87M

Price to Earnings (P/E)9.8

Beta (1Y)1.66

Revenue Growth13.77%

EPS GrowthN/A

CountryNL

Employees21,048

SectorCommunication Services

Sector Strength87

IndustryInternet Content & Information

Share Statistics

EPS (TTM)1.34

Shares Outstanding2,378,947,800

10 Day Avg. Volume3,185,741

30 Day Avg. Volume2,868,997

Financial Highlights & Ratios

PEG Ratio-0.34

Price to Book (P/B)6.04

Price to Sales (P/S)0.00

P/FCF Ratio-703.01

Enterprise Value/Market Cap2.69

Enterprise Value/Revenue13.01

Enterprise Value/Gross Profit111.63

Enterprise Value/Ebitda-1.05K

Forecast

1Y Price Target

$54.28

Price Target Upside15.71% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering11

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 investments in technology and internet companies. A significant portion of its earnings comes from its stake in Tencent, which contributes through dividends and share appreciation. Additionally, Prosus owns and operates businesses in online classifieds, food delivery services, and fintech, which generate income through service fees, advertising, and transaction commissions. The company also benefits from strategic partnerships and investments in high-growth markets, enhancing its revenue streams through capital gains and returns on investment.

Prosus Earnings Call Summary

Earnings Call Date:Jun 23, 2025

(Q4-2025)

% Change Since: 1.70%|

Next Earnings Date:Nov 24, 2025

Earnings Call Sentiment Positive

The earnings call was largely positive, highlighting strong financial performance, strategic acquisitions, and a focus on innovation. However, there are some challenges related to competition and regulatory review that need to be monitored.

Q4-2025 Updates

Positive Updates

Exceeded Earnings Expectations

The company exceeded its promise of $400 million by delivering $443 million, showing a strong start under the new CEO.

Strong Revenue Growth

The company grew by 21% over the last year, which is 2x faster than most peers, demonstrating significant market momentum.

iFood and OLX Profitability

iFood's core restaurant delivery business achieved an adjusted EBIT margin of 28%, and OLX grew its profits by 61% over the period, showing strong profitability improvements.

Dividend Increase

The company doubled its dividend, showing confidence in its financial stability and growth prospects.

Despegar Acquisition

The company successfully closed the Despegar acquisition, integrating it into the Latin American ecosystem.

Focus on Innovation

The company is leveraging AI to enhance operational efficiency and customer understanding, positioning itself at the forefront of technological innovation.

Negative Updates

Competition Concerns

Increased competition from Meituan in Latin America and other regions presents a potential challenge to maintaining market share.

Regulatory Oversight

The Just Eat acquisition is subject to regulatory review, which could present hurdles to finalizing the transaction.

Cultural Integration Challenges

The ongoing cultural transformation within the company, while showing progress, is a complex and lengthy process, especially with new acquisitions.

Company Guidance

During the Prosus fiscal year 2025 Q4 results call, CEO Fabricio Bloisi shared several key metrics and goals, underscoring strong performance and future ambitions. Bloisi reported delivering $443 million, surpassing the promised $400 million, and announced a 100% increase in dividends, reflecting positive momentum. Highlighting operational efficiency, the iFood business achieved an adjusted EBIT margin of 28%, while OLX profits grew by 61% on 18% revenue growth. The company expects continued growth, aiming for more than $800 million in EBIT by FY 2026. Bloisi expressed excitement about the potential of AI-driven innovation to enhance efficiency across operations, contributing to a faster, more agile company culture. The focus remains on establishing Prosus as the leading lifestyle e-commerce brand in Latin America, Europe, and India, with strategic investments and synergies in place to achieve this vision.

Prosus Financial Statement Overview

Summary

Prosus shows a mixed financial performance with strengths in revenue recovery and EBITDA performance, but challenges in profitability and cash flow consistency. The balance sheet remains stable with manageable leverage. Overall, the company needs to focus on improving profitability and maintaining positive cash flow trends.

Income Statement

Positive

The company's revenue has shown volatility, with a decrease from 2022 to 2023 but an increase from 2023 to 2024. Gross profit margin has improved in 2024, indicating better cost management. However, the net profit margin and EBIT margins are negative, reflecting challenges in profitability. EBITDA margin remains strong, suggesting potential for operational improvement.

Balance Sheet

Positive

The balance sheet is solid with a relatively high stockholders' equity compared to total assets, indicating financial stability. Debt-to-equity ratio is moderate, suggesting manageable leverage. However, the decline in stockholders' equity over the years and high net debt in 2023 are areas of concern.

Cash Flow

Neutral

Free cash flow has improved significantly in 2024 after negative years, indicating better cash management. Operating cash flow to net income ratio is stable, although fluctuations in operating cash flow in previous years highlight volatility. The company shows potential for cash flow stabilization.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	5.87B	5.47B	5.76B	6.87B	5.12B	3.33B
Gross Profit	2.47B	2.22B	1.66B	2.06B	1.66B	1.15B
EBITDA	189.00M	7.75B	10.48B	8.82B	-831.00M	4.14B
Net Income	7.81B	6.61B	10.11B	18.73B	7.45B	3.77B
Balance Sheet
Total Assets	69.11B	61.82B	65.08B	71.34B	55.73B	35.76B
Cash, Cash Equivalents and Short-Term Investments	18.29B	18.99B	20.87B	13.57B	6.03B	7.85B
Total Debt	16.56B	16.24B	16.27B	16.08B	8.20B	3.82B
Total Liabilities	21.16B	20.53B	20.45B	20.82B	12.54B	6.45B
Stockholders Equity	47.90B	41.26B	44.59B	50.42B	43.07B	29.10B
Cash Flow
Free Cash Flow	1.35B	978.00M	-383.00M	-847.00M	54.00M	-310.00M
Operating Cash Flow	1.42B	1.04B	-120.00M	-605.00M	159.00M	-209.00M
Investing Cash Flow	12.88B	209.00M	12.64B	4.39B	-3.22B	2.27B
Financing Cash Flow	-6.89B	-8.12B	-12.45B	2.40B	2.45B	17.00M

Prosus Technical Analysis

Technical Analysis Sentiment

Positive

Last Price46.91

Price Trends

50DMA

45.54

Positive

100DMA

43.69

Positive

200DMA

40.95

Positive

Market Momentum

MACD

0.43

Positive

RSI

52.50

Neutral

STOCH

27.22

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:PRX, the sentiment is Positive. The current price of 46.91 is below the 20-day moving average (MA) of 47.16, above the 50-day MA of 45.54, and above the 200-day MA of 40.95, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 52.50 is Neutral, neither overbought nor oversold. The STOCH value of 27.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:PRX.

Prosus Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRX	69 Neutral	$102.42B	9.78	27.07%	0.21%	13.77%	―
Sector *	58 Neutral	C$3.31B	6.23	-0.75%	6.13%	-2.19%	-11.60%
UMGNF		$57.99B	25.57	56.71%	2.00%	―	―

* Communication Services Sector Average

Performance Comparison

NL:PRX

Prosus

46.91

14.16

43.24%

UMGNF

Universal Music Group

31.57

1.79

6.01%

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.Date of analysis: Apr 25, 2025