Naspers (NPSNY) AI Stock Analysis

• Market Cap: $45.17B
• Dividend Yield: 0.27%
• Average Volume (3M): 147.84K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.97
• Revenue Growth: 13.95%
• EPS Growth: 249.74%
• Country: US
• Employees: 25,564
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Internet Content & Information
• EPS (TTM): 0.60
• Shares Outstanding: 3,917,932,600
• 10 Day Avg. Volume: 110,302
• 30 Day Avg. Volume: 147,835
• PEG Ratio: 0.02
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 4.82
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 5.71
• Enterprise Value/Gross Profit: 13.78
• Enterprise Value/Ebitda: 5.63
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.05
• Revenue Forecast (FY): $10.40B

• Rating: 69 Neutral
• Price Target: $12.50 ▼(-6.02% Downside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

Naspers' strong financial performance and positive earnings call are major strengths, reflecting robust growth and strategic initiatives. However, technical indicators show bearish momentum, and the high P/E ratio suggests overvaluation, which tempers the overall score.

Positive Factors

Robust revenue growth

Sustained high revenue growth (70% to $530m) indicates expanding market traction across classifieds, food delivery and fintech. This scale supports network effects, higher monetization potential and underpins the company's ability to invest in product buildout and strategic M&A over the medium term.

Improved free cash flow generation

A 42% increase in free cash flow and FCF-to-net-income near 0.93 demonstrates strong cash conversion. Durable cash generation enhances financial flexibility to fund organic growth, repay or manage debt, execute disciplined buybacks and support selective investments without heavy reliance on external financing.

Manageable leverage and strong ROE

Moderate leverage (D/E ~0.76) combined with a high ROE (23.6%) points to effective capital allocation and a balanced capital structure. This profile supports resilience through cycles, capacity for strategic investments and a foundation for sustaining shareholder returns over the 2–6 month horizon.

Negative Factors

Low EBIT margin

An EBIT margin of ~1.8% signals structural operational inefficiencies or high operating leverage in certain segments. Persistently low underlying operating profitability can limit reinvestment capacity, pressure unit economics in competitive markets and make earnings more sensitive to cost or volume shocks.

Intense competition in food delivery

Escalating competitive intensity in food delivery compresses pricing power and take rates long term. Sustained discounting and promotional battles can erode unit economics, slow margin recovery and require ongoing marketing or subsidy spend to defend share, weighing on durable profitability.

Underperforming acquisition and asset monetization uncertainty

An underperforming acquisition (Jet: -7% order growth) plus unclear plans for monetizing portfolio stakes introduces execution risk. Persistent integration or monetization delays reduce expected returns from M&A and investments, and can constrain capital redeployment and long-term value realization.

Naspers Business Overview & Revenue Model

Company Description

Naspers Limited operates in the consumer internet industry worldwide. It operates through Classifieds, Food Delivery, Payments and Fintech, Etail, Edtech, and Other Ecommerce segments. It holds investments in classifieds, food delivery, payments and fintech, education, health, and ecommerce, as well as ventures, and social and internet platforms; and offers eMAG platform for online food and grocery delivery network. The company also prints, publishes, and distributes newspapers, magazines, and books through digital platforms, as well as provides media logistics. Naspers Limited was founded in 1915 and is headquartered in Cape Town, South Africa.

How the Company Makes Money

Naspers makes money through a combination of (1) revenue generated by the operating companies it controls (or consolidates) and (2) investment returns from equity stakes in companies it does not fully operate. 1) Operating company revenues (platform and transaction-based) - Online classifieds: Businesses in this segment typically earn revenue by charging for listings, promoting listings (featured placements), and selling advertising to individuals and businesses. In some markets, they also generate revenue from value-added services such as lead generation tools, dealer subscriptions, and ancillary transaction services. - Food delivery: Food delivery platforms generally earn commissions on the value of orders placed through the marketplace, fees charged to consumers (delivery and service fees), and marketing/advertising revenue from restaurants (e.g., paid placements and promotions). Some models also include subscription programs that reduce delivery fees in exchange for recurring membership revenue. - Payments/fintech: Payments and fintech businesses commonly generate revenue from transaction fees (merchant acquiring and payment processing), consumer fees (where applicable), and financial services spreads/fees tied to products such as lending, wallets, and related services. Exact product mix varies by market and subsidiary. 2) Investment and holding-company economics - Equity-accounted and other investment income: Naspers holds significant minority/strategic stakes in internet companies. Depending on accounting treatment and ownership level, returns can come through share of profits, dividends received, or changes in the value of those holdings. - Realized gains from portfolio management: Naspers may monetize parts of its investment portfolio over time, generating gains (or losses) when it sells equity stakes. These can be material when large holdings are involved. 3) The role of Tencent exposure - A major driver of Naspers’ overall value and potential investment returns is its economic exposure to Tencent via its shareholding structure. Naspers can benefit financially from this exposure through dividends (if paid through the chain of ownership) and/or through any monetization actions involving that stake. Specific amounts and mechanisms depend on corporate actions and are not provided here. 4) Other factors influencing earnings - Scale and network effects: Many of Naspers’ platforms (marketplaces, delivery, and payments) can improve monetization as user bases grow, driving higher take rates, more advertising inventory, and better unit economics. - Competitive intensity and regulation: Profitability in delivery and fintech can be sensitive to competition, consumer demand, and regulatory requirements in the jurisdictions where portfolio companies operate. null

Naspers Financial Statement Overview

Summary

Naspers exhibits strong financial health with impressive revenue growth and profitability metrics. The balance sheet reflects a stable financial position with moderate leverage and strong return on equity. Cash flow performance is robust, with significant improvements in free cash flow generation. Overall, the company is well-positioned for continued growth, though attention to operational efficiency could further enhance performance.

Income Statement

Naspers has demonstrated strong revenue growth with a 39.3% increase in the latest period, indicating robust business expansion. The gross profit margin of 40.3% and net profit margin of 73% reflect efficient cost management and high profitability. However, the EBIT margin is relatively low at 1.8%, suggesting potential inefficiencies in operational management.

Balance Sheet

The company's debt-to-equity ratio of 0.76 indicates a moderate level of leverage, which is manageable but should be monitored. The return on equity is strong at 23.6%, showcasing effective use of shareholder funds. The equity ratio of 30.3% suggests a balanced capital structure, though there is room for improvement in asset financing.

Cash Flow

Naspers has shown a significant improvement in free cash flow with a growth rate of 42%, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio of 0.30 suggests that cash flow generation is aligned with profitability. The free cash flow to net income ratio of 0.93 reflects a healthy conversion of profits into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.86B	7.18B	6.43B	5.96B	6.29B	5.93B
Gross Profit	3.26B	2.89B	2.46B	1.88B	1.63B	1.85B
EBITDA	7.98B	13.34B	7.78B	10.47B	19.15B	7.75B
Net Income	5.71B	5.24B	2.85B	4.33B	12.22B	5.30B
Balance Sheet
Total Assets	80.21B	73.27B	62.27B	65.50B	71.32B	53.82B
Cash, Cash Equivalents and Short-Term Investments	22.34B	18.33B	19.26B	21.28B	13.65B	6.45B
Total Debt	18.17B	16.82B	16.50B	16.45B	16.15B	8.27B
Total Liabilities	24.55B	22.06B	20.99B	20.89B	21.19B	12.96B
Stockholders Equity	24.28B	22.18B	17.87B	18.96B	20.58B	29.19B
Cash Flow
Free Cash Flow	1.85B	1.77B	936.00M	-479.00M	-981.00M	-62.00M
Operating Cash Flow	1.96B	1.91B	1.03B	-177.00M	-702.00M	73.00M
Investing Cash Flow	16.04B	11.78B	142.00M	12.55B	5.91B	-731.00M
Financing Cash Flow	-9.43B	-8.51B	-8.24B	-12.10B	894.00M	53.00M

Naspers Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPSNY, the sentiment is Neutral. The current price of 13.3 is above the 20-day moving average (MA) of 11.17, above the 50-day MA of 12.18, and above the 200-day MA of 12.90, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 50.32 is Neutral, neither overbought nor oversold. The STOCH value of 72.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NPSNY.

Naspers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDDT	72 Outperform	$25.29B	80.88	20.89%	―	69.71%	―
TME	71 Outperform	$19.47B	30.10	14.05%	1.02%	13.86%	80.97%
NPSNY	69 Neutral	$45.17B	6.05	21.96%	0.27%	13.95%	249.74%
PINS	68 Neutral	$11.65B	41.90	8.74%	―	16.79%	819.94%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SNAP	55 Neutral	$7.70B	―	-20.72%	―	11.75%	49.19%
BIDU	46 Neutral	$42.94B	77.69	2.02%	―	-2.70%	-56.75%