Naspers (NPSNY) AI Stock Analysis

• Market Cap: $36.49B
• Dividend Yield: 0.21%
• Average Volume (3M): 51.24K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 1.20
• Revenue Growth: 11.37%
• EPS Growth: N/A
• Country: US
• Employees: 25,564
• Sector: Communication Services
• Sector Strength: 79
• Industry: Internet Content & Information
• EPS (TTM): 3.77
• Shares Outstanding: 822,156,400
• 10 Day Avg. Volume: 68,544
• 30 Day Avg. Volume: 51,242
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.46
• Price to Cash Flow (P/CF): 939.40
• P/FCF Ratio: 10.60
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Naspers' overall stock score reflects a balance of mixed financial performance, uncertain technical indicators, and attractive valuation. While the company demonstrates strong net profitability and a balanced debt-to-equity ratio, declining revenue and operational inefficiencies are concerns. The stock's technical indicators suggest potential weakness, but its low P/E ratio offers valuation appeal, suggesting room for price growth.

Naspers Business Overview & Revenue Model

Company Description

Naspers Limited (NPSNY) is a global consumer internet group and one of the largest technology investors in the world. Headquartered in South Africa, Naspers operates across multiple sectors, including online classifieds, food delivery, payments, and fintech. The company's core services are centered around internet services, video entertainment, and print media, but its most notable investments are in technology companies across various regions, particularly through its significant stake in Tencent Holdings, a leading provider of internet services in China.

How the Company Makes Money

Naspers makes money primarily through its investments in global technology companies, with a significant portion of its revenue coming from its stake in Tencent Holdings. This investment generates substantial income through dividends and capital appreciation. Additionally, Naspers earns revenue from its portfolio of internet services, which includes online classifieds platforms like OLX, food delivery services such as Delivery Hero, and fintech solutions through PayU. The company also generates revenue from its video entertainment segment, although it has been focusing more on expanding its digital and internet services. Strategic partnerships and collaborations with various technology companies further enhance its revenue streams, while its focus on high-growth markets allows it to capture emerging opportunities in the digital economy.

Naspers Financial Statement Overview

Summary

Naspers presents a mixed financial picture with both strengths and weaknesses. The company shows strong net profitability and a reasonable balance between debt and equity. However, declining revenues and operational inefficiencies pose concerns. Cash flow improvements are evident, yet efficiency in translating income to cash could be better. Overall, Naspers appears to be relatively stable but with areas to address for improved financial health.

Income Statement

Naspers has shown mixed performance in its income statement. The company experienced a decline in revenue over the last year by approximately 5.1%, which is concerning. The gross profit margin stands at around 38.3% for the most recent year, indicating a solid ability to cover production costs. However, the net profit margin is notably high at 44.4%, driven by substantial net income relative to revenue, despite negative EBIT and fluctuating EBITDA margins. The volatile EBIT margin suggests challenges in operational efficiency.

Balance Sheet

The balance sheet of Naspers indicates a relatively stable financial position. The debt-to-equity ratio stands at 0.92, which is moderate and suggests a balanced approach to leverage. The return on equity (ROE) is approximately 16.0%, reflecting decent profitability for shareholders. The equity ratio is 28.7%, pointing to an adequate level of equity financing compared to total assets. Overall, the balance sheet demonstrates a reasonable mix of debt and equity, though there is room for improvement in equity strength.

Cash Flow

Naspers' cash flow statement reveals some challenges and opportunities. The free cash flow has improved significantly compared to the prior year, showing positive growth, which is a good sign for liquidity. However, the operating cash flow to net income ratio is low, at 0.36, indicating less cash generation from operations relative to net income. The free cash flow to net income ratio is higher, at 0.33, suggesting moderate efficiency in converting income to free cash flow. The cash flow situation indicates improvements but highlights the need for enhanced cash conversion efficiency.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
6.43B	6.78B	6.29B	5.93B	4.00B
	Gross Profit
2.46B	1.80B	1.54B	1.58B	1.09B
	EBIT
-562.00M	-637.00M	-822.00M	-1.09B	-651.00M
	EBITDA
7.78B	5.30B	9.90B	659.00M	97.00M
	Net Income Common Stockholders
2.85B	4.33B	12.22B	5.30B	3.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.26B	21.28B	13.66B	6.46B	8.36B
	Total Assets
62.27B	65.50B	71.32B	53.82B	36.32B
	Total Debt
16.50B	16.34B	16.19B	8.20B	3.82B
	Net Debt
14.68B	14.93B	14.74B	6.90B	2.90B
	Total Liabilities
20.99B	20.89B	21.19B	12.96B	6.39B
	Stockholders Equity
17.87B	18.96B	20.58B	29.19B	21.75B
Cash Flow		Free Cash Flow
936.00M	-479.00M	-981.00M	-68.00M	-310.00M
	Operating Cash Flow
1.03B	-177.00M	-702.00M	73.00M	-196.00M
	Investing Cash Flow
142.00M	12.62B	6.05B	-678.00M	2.44B
	Financing Cash Flow
-8.24B	-12.16B	754.00M	53.00M	-121.00M

Naspers Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPSNY, the sentiment is Negative. The current price of 45.55 is below the 20-day moving average (MA) of 49.00, below the 50-day MA of 48.77, and above the 200-day MA of 44.49, indicating a neutral trend. The MACD of 0.55 indicates Positive momentum. The RSI at 47.83 is Neutral, neither overbought nor oversold. The STOCH value of 14.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NPSNY.

Naspers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TME	80 Outperform	$21.51B	20.43	10.75%	1.09%	0.63%	34.09%
BIDU	76 Outperform	$28.61B	9.02	9.14%	―	-2.60%	16.71%
PINS	76 Outperform	$17.85B	9.75	47.49%	―	19.35%	―
DASH	68 Neutral	$75.00B	681.09	1.68%	―	24.17%	―
RDDT	64 Neutral	$18.30B	―	-27.12%	―	61.71%	-442.46%
NPSNY	63 Neutral	$36.49B	12.09	17.75%	0.21%	11.37%	―
Sector *	58 Neutral	$26.33B	3.17	-10.68%	4.33%	2.16%	-43.07%