Prosus (PRX) AI Stock Analysis

• Market Cap: €105.84B
• Dividend Yield: 0.38%
• Average Volume (3M): 2.40M
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.41
• 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): 1.49
• 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: €69.38
• Price Target Upside: 43.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €56.00 ▲(15.56% Upside)

The score is driven primarily by solid financial performance (strong growth, profitability, and balance-sheet health) and very attractive valuation (low P/E and high dividend yield). These positives are moderated by a mixed technical picture with only modest momentum confirmation.

Positive Factors

Diversified internet portfolio

Prosus' portfolio across classifieds, food delivery, payments and fintech plus equity stakes creates multiple, independent cash-flow channels. This diversification lowers single-market exposure, preserves optionality to reallocate capital, and supports resilience and growth over the medium term.

Sustained revenue growth

Mid-teens reported revenue growth (~13.9%) indicates durable demand and scalable monetization across platforms. Sustained top-line expansion supports reinvestment for market share, strengthens network effects, and enhances the company's ability to compound value and fund strategic initiatives over 2-6 months and beyond.

Healthy balance sheet

A strong equity base and manageable leverage reduce refinancing and solvency risk, enabling Prosus to fund growth, acquisitions, or weather downturns without forcing asset sales. This financial flexibility supports durable capital allocation and long-term strategic execution.

Negative Factors

Fluctuating EBIT margins

Reported variability in EBIT and operational efficiency signals unstable operating leverage across core businesses. Persistent margin swings make forecasting and capital allocation harder, and may force cyclical cost actions that undermine long-term investment in product and market expansion.

Cash-flow variability

Although FCF has improved recently, historical volatility in operating cash flow reduces predictability for dividends, buybacks, or strategic investments. This variability necessitates larger liquidity buffers and can constrain consistent capital deployment during down cycles.

Earnings quality concerns

Net income benefiting from non-operational gains weakens core earnings visibility. If investment returns or one-off items normalize, reported profits and distributable cash could fall, revealing weaker underlying operational performance and increasing reliance on portfolio gains to meet targets.

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 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 Financial Statement Overview

Summary

Strong overall fundamentals: robust revenue growth and strong gross and net profit margins, supported by a healthy balance sheet with solid equity and manageable leverage. Main offsets are fluctuating EBIT/operational efficiency and some historical cash-flow variability despite recent free-cash-flow improvement.

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	6.93B	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: 48.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 48.46 is below the 20-day moving average (MA) of 52.44, below the 50-day MA of 53.02, and below the 200-day MA of 51.93, indicating a bearish trend. The MACD of -1.23 indicates Positive momentum. The RSI at 27.95 is Positive, neither overbought nor oversold. The STOCH value of 9.83 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
PRX	74 Outperform	€105.84B	9.18	27.07%	0.38%	13.91%	80.97%
UMG	71 Outperform	€37.93B	14.53	60.27%	2.37%	6.12%	67.59%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%