Prosus (PRX) AI Stock Analysis

• Market Cap: €87.42B
• Dividend Yield: 0.38%
• Average Volume (3M): 2.40M
• Price to Earnings (P/E): 6.9
• Beta (1Y): 1.56
• Revenue Growth: 13.91%
• EPS Growth: 80.97%
• Country: NL
• Employees: 21,048
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 1.54
• Shares Outstanding: 2,378,947,800
• 10 Day Avg. Volume: 1,968,335
• 30 Day Avg. Volume: 2,396,599
• PEG Ratio: 0.05
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 17.95
• P/FCF Ratio: 61.05
• 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: €73.00
• Price Target Upside: 60.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.89
• Revenue Forecast (FY): €8.96B

• Rating: 69 Neutral
• Price Target: €47.00 ▲(3.46% Upside)
• Action: Downgraded Date: 03/19/26
• Date: Action: Downgraded 03/19/26

Overall score is driven primarily by strong financial performance and an attractive valuation (low P/E with a positive dividend yield). These positives are tempered by weaker technicals, with the stock trading below major moving averages and slightly negative MACD indicating a softer trend.

Positive Factors

Diversified business model

Prosus’s mix of consolidated operating platforms (marketplaces, food delivery, fintech, education) plus an investment portfolio creates multiple durable revenue streams and optionality. This diversification reduces dependence on any single market cycle and supports steadier cash generation over months.

Healthy balance sheet

A strong equity base and prudent leverage provide financial flexibility for investment, M&A, or weathering industry downturns. Manageable D/E and a favorable equity ratio support capital allocation choices without forcing asset sales, underpinning medium-term stability.

Improving free cash flow

Rising free cash flow and positive cash conversion indicate the core portfolio is increasingly generating cash available for reinvestment, debt reduction, or returns to shareholders. Improved cash conversion boosts resilience and funds strategic initiatives over 2–6 months.

Negative Factors

Volatile operating margins

Material swings in EBIT margins point to inconsistent operating leverage or uneven cost control across segments. This volatility can make earnings generation and forecasting unreliable, reducing predictability of core profitability despite healthy top-line growth.

Variable cash management

Changing net debt levels imply episodic financing or investment activity that can strain liquidity if market or asset-sale conditions tighten. If cash-management swings persist, they could constrain strategic flexibility or require defensive actions in adverse scenarios.

Reliance on non-operational income

Earnings buoyed by investment revaluations or one-off gains obscure operating performance. Dependence on non-operating income reduces the sustainability of reported profits and complicates assessment of core business health over the medium term.

Prosus Business Overview & Revenue Model

Company Description

Prosus 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 Money

Prosus makes money primarily through (1) revenue generated by its consolidated operating businesses and (2) gains and income related to its investment portfolio. 1) Consolidated operating businesses (operating revenue) - Online marketplaces (e.g., classifieds and marketplace platforms): These businesses typically earn revenue from listing fees, subscription packages for professional sellers/agents, advertising/featured placements, and transaction-related services (where applicable). Revenue is driven by user traffic, paying seller penetration, and monetization products (ads, subscriptions, and value-added services). - Food delivery: Revenue is generally earned via commissions charged to restaurants on order value, consumer-facing delivery/service fees, and advertising/marketing services sold to restaurants (e.g., sponsored placement). Some platforms also earn revenue from logistics/delivery operations and related service fees. Profitability depends on order volume, take rates, delivery costs, and marketing spend. - Fintech and payments: Revenue is typically generated from payment processing fees (merchant discount rates or per-transaction fees), financial services fees (e.g., account, lending, or remittance-related fees where offered), and interchange or related network economics (depending on product and jurisdiction). Growth is linked to total payment volume and active users/merchants. - Education technology: Revenue is commonly derived from tuition fees, subscriptions to learning platforms, and enterprise/B2B training services, depending on the specific asset. 2) Investment portfolio income and value realization - Prosus also holds minority stakes in various technology companies. It can generate earnings through dividends (if paid by investees), interest income on cash and equivalents, and realized gains from partial disposals of investments. The value of its holdings can also change with market conditions; while such revaluations may affect reported results, they are not necessarily cash earnings unless investments are sold. Key factors influencing earnings - Scale and monetization efficiency of its operating platforms (user growth, take rates, advertising yield, and cost control). - Competitive dynamics and regulation in food delivery, classifieds, and fintech markets. - Capital allocation decisions (acquisitions, disposals, buybacks) that can realize gains or shift the mix of earnings. Significant partnerships: null

Prosus Financial Statement Overview

Summary

Financial statements indicate strong fundamentals: solid revenue growth and strong gross margins, a healthy balance sheet with prudent leverage, and improving free cash flow. Main offset is volatility in operating efficiency (fluctuating EBIT margins) and variable cash flow history.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.93B	6.17B	5.47B	5.76B	6.87B	5.12B
Gross Profit	2.93B	2.62B	2.22B	1.66B	2.06B	1.66B
EBITDA	8.10B	13.37B	7.75B	10.48B	19.16B	-831.00M
Net Income	13.61B	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	1.92B	1.81B	978.00M	-383.00M	-847.00M	54.00M
Operating Cash Flow	2.01B	1.92B	1.04B	-120.00M	-605.00M	159.00M
Investing Cash Flow	16.38B	11.88B	209.00M	12.64B	4.39B	-3.22B
Financing Cash Flow	-9.61B	-8.74B	-8.12B	-12.45B	2.40B	2.45B

Prosus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:PRX, the sentiment is Negative. The current price of 45.43 is above the 20-day moving average (MA) of 43.60, below the 50-day MA of 46.40, and below the 200-day MA of 51.90, indicating a bearish trend. The MACD of -0.81 indicates Positive momentum. The RSI at 32.96 is Neutral, neither overbought nor oversold. The STOCH value of 9.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:PRX.

Prosus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMG	71 Outperform	€29.23B	26.58	60.27%	2.37%	6.12%	67.59%
PRX	69 Neutral	€87.42B	6.86	25.58%	0.38%	13.91%	80.97%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%