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Prosus (NL:PRX)
:PRX
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Prosus
(OTC:PRX)
Rating:79Outperform
Price Target:
€55.00
▲(4.23% Upside)
Positive Factors
Financial Performance
Prosus pre-announced FY25 adjusted EBIT of at least $435m, exceeding its previously announced ambition and significantly above market expectations.
Mergers and Acquisitions
The European Commission has approved the proposed acquisition of Just Eat Takeaway.com by Naspers, through its subsidiary Prosus.
Profitability Targets
Mid-term profitability targets for the e-commerce portfolio are likely to be strong, with the CEO focused on driving profitability and potentially announcing an ambitious plan for the Classifieds and Food Delivery business.
Negative Factors
Regulatory Conditions
The approval is conditional upon Naspers fully complying with a set of commitments to address competition concerns.
Shareholding Constraints
Prosus is required to significantly reduce its shareholding in Delivery Hero below a specified 'very low percentage'.
Voting Rights Limitations
Prosus must not exercise the voting rights associated with its remaining limited shareholding in Delivery Hero.
Prosus (PRX) vs. iShares MSCI Netherlands ETF (EWN)
Market Cap
$115.44B
Dividend Yield0.19%
Average Volume (3M)1.96M
Price to Earnings (P/E)11.0
Beta (1Y)1.57
Revenue Growth14.03%
EPS Growth102.46%
CountryNL
Employees21,048
SectorCommunication Services
Sector Strength90
IndustryInternet Content & Information
Share Statistics
EPS (TTM)1.35
Shares Outstanding2,378,947,800
10 Day Avg. Volume2,081,792
30 Day Avg. Volume1,963,491
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue16.88
Enterprise Value/Gross Profit40.11
Enterprise Value/Ebitda524.60
Forecast
1Y Price Target
$55.25Price Target Upside4.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
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 through multiple streams, primarily from its stakes in technology companies, with Tencent being its most notable investment. The company earns significant dividends and capital gains from this holding. In addition, Prosus directly generates income from its own platforms, such as OLX, which earns through listing fees and advertising services, and Delivery Hero, which generates revenue through food delivery services. Furthermore, Prosus's fintech arm, PayU, contributes to earnings through payment processing fees and financial services. Strategic partnerships, such as those with local players in various markets, also enhance its revenue potential by expanding user reach and service offerings.
Prosus Earnings Call Summary
Earnings Call Date:Jun 23, 2025
(Q4-2025)
| % Change Since: 14.41%|
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 exhibits strong financial performance with robust revenue and profit growth, a healthy balance sheet, and improving cash flows. The company's equity management and financial stability are commendable, though operational efficiency and consistent cash management require attention.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.75
Positive
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.80
Positive
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.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.17B | 5.47B | 5.76B | 6.87B | 5.12B |
| Gross Profit | 2.62B | 2.22B | 1.66B | 2.06B | 1.66B |
| EBITDA | 13.37B | 7.75B | 10.48B | 8.82B | -831.00M |
| Net Income | 12.37B | 6.61B | 10.11B | 18.73B | 7.45B |
Balance Sheet | |||||
| Total Assets | 72.59B | 61.82B | 65.08B | 71.34B | 55.73B |
| Cash, Cash Equivalents and Short-Term Investments | 18.90B | 18.99B | 20.87B | 13.57B | 6.03B |
| Total Debt | 16.45B | 16.24B | 16.27B | 16.08B | 8.20B |
| Total Liabilities | 21.46B | 20.53B | 20.45B | 20.82B | 12.54B |
| Stockholders Equity | 51.05B | 41.26B | 44.59B | 50.42B | 43.07B |
Cash Flow | |||||
| Free Cash Flow | 1.81B | 978.00M | -383.00M | -847.00M | 54.00M |
| Operating Cash Flow | 1.92B | 1.04B | -120.00M | -605.00M | 159.00M |
| Investing Cash Flow | 11.88B | 209.00M | 12.64B | 4.39B | -3.22B |
| Financing Cash Flow | -8.74B | -8.12B | -12.45B | 2.40B | 2.45B |
Prosus Technical Analysis
Positive
52.77
Price Trends
48.78
Positive
45.67
Positive
42.56
Positive
Market Momentum
0.87
Negative
67.68
Neutral
85.44
Negative
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 52.77 is above the 20-day moving average (MA) of 50.77, above the 50-day MA of 48.78, and above the 200-day MA of 42.56, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 67.68 is Neutral, neither overbought nor oversold. The STOCH value of 85.44 is Negative, 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 (60)
Financial Indicators
Performance Comparison
NL:PRX
Prosus
52.77
19.67
59.40%
UMGNF
Universal Music Group
28.51
4.40
18.25%
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.