Prosus NV (PROSY) AI Stock Analysis

• Market Cap: $117.27B
• Dividend Yield: 0.24%
• Average Volume (3M): 223.14K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.84
• Revenue Growth: 16.17%
• EPS Growth: 82.93%
• Country: US
• Employees: 21,048
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.35
• Shares Outstanding: 10,914,869,000
• 10 Day Avg. Volume: 159,692
• 30 Day Avg. Volume: 223,138
• PEG Ratio: 0.05
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 18.05
• P/FCF Ratio: 61.38
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 15.53
• Enterprise Value/Gross Profit: 36.72
• Enterprise Value/Ebitda: 13.26
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.76
• Revenue Forecast (FY): $8.89B

• Rating: 73 Outperform
• Price Target: $12.00 ▼(-4.00% Downside)
• Action: Upgraded Date: 01/13/26
• Date: Action: Upgraded 01/13/26

Overall score is driven primarily by strong financial performance (growth, low leverage, and sharply higher free cash flow) and supportive valuation (low P/E and high dividend yield). The score is moderated by mixed technical signals and weak cash conversion metrics.

Positive Factors

Consistent Revenue Growth

Prosus reported revenue growth of 12.88% year over year, reflecting sustained top-line expansion across classifieds, delivery, fintech and edtech. Durable revenue growth supports continued reinvestment into network effects, market share gains and multi-year scaling of platform economics.

Low Leverage and Strong ROE

A debt-to-equity ratio of 0.32 and a 24.22% ROE indicate conservative leverage and efficient use of shareholder capital. This structural strength provides flexibility for strategic investments, follow-on funding for portfolio companies, and resilience against cyclical pressures over the medium term.

Material Free Cash Flow Improvement

An 85.49% increase in free cash flow shows meaningful improvement in cash generation capacity, enhancing optionality for capital allocation. Higher FCF supports durable funding for organic growth, bolt-on investments, debt reduction, or shareholder returns without relying solely on capital markets.

Negative Factors

Weak Cash Conversion

Operating cash flow and free cash flow convert only ~15–16% of reported net income, implying earnings are materially influenced by non-cash items or one-off investment gains. Low cash conversion undermines the sustainability of reported profits and limits internally funded growth without reliance on asset sales.

Thin and Volatile Operating Margins

An EBIT margin of just 2.8% signals that core operating activities generate thin profitability, while reported very high net/EBITDA margins reflect non-operational items. This divergence and margin volatility increases execution risk and makes long-term operating cash flow less predictable.

Concentration on Investment Returns

Prosus’s material reliance on returns from large stakes—most notably Tencent—concentrates value and earnings on external market valuations and a few assets. That dependence increases earnings and balance sheet volatility and reduces the predictability of recurring operating cash flows over time.

Prosus NV 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 and profits generated by its consolidated operating businesses and (2) investment returns from its non-consolidated equity stakes. 1) Consolidated operating revenue (from controlled subsidiaries) - Online classifieds: Classifieds and marketplace platforms typically earn revenue from paid listings (e.g., job posts, real-estate listings, car listings), seller subscriptions, advertising, and value-added services such as lead generation, promotion/boosting, and transaction-related services where applicable. - Food delivery: Food delivery platforms generally generate revenue from commissions charged to restaurants/merchants on order value, delivery and service fees charged to consumers, advertising/marketing services sold to merchants (e.g., sponsored listings), and other platform fees. Unit economics depend on order volume, take rate, delivery costs, and promotional spend. - Fintech and payments: Fintech/payments businesses typically earn from payment processing and transaction fees, merchant discount rates, financial services fees (where offered), and potentially interest or lending-related income depending on products and regulatory structure. - Education technology: Edtech platforms commonly earn via subscription fees, course and certification fees, enterprise/organizational contracts, and other digital content/service revenues. 2) Investment income and value realization (from minority and equity-accounted investments) - Tencent stake: Prosus holds a significant equity interest in Tencent. Economic benefits can come from dividends received (if/when paid) and from changes in the market value of that stake; realized gains occur if shares are sold. Because Tencent is not fully consolidated by Prosus, a substantial portion of Prosus’s value and potential cash generation can be linked to this investment. - Other minority investments: Prosus invests in various private and public technology companies. It can earn returns through dividends (if applicable), distributions, and realized gains on partial or full exits (sales/IPO), and it may recognize income/losses based on accounting treatment for associates/joint ventures. 3) Additional factors influencing earnings and cash flow - Capital allocation and portfolio management: Prosus’s results are materially affected by how it allocates capital (new investments, follow-on funding, share buybacks, and asset sales) and by the operating performance of its major subsidiaries. - Partnerships and ecosystems: Platform businesses (delivery, payments, classifieds) often rely on networks of merchants, restaurants, logistics partners, and payment networks; these relationships support transaction volume and monetization, though specific partnership terms vary by business and are not uniformly disclosed in a single public line item. If you need a breakdown by segment (e.g., the largest operating segments and their relative contribution), that requires specific period financial disclosures; otherwise null.

Prosus NV Financial Statement Overview

Summary

Strong fundamentals overall: revenue grew 12.88% (2024–2025), gross margin is solid at 42.52%, leverage is low (debt-to-equity 0.32), and free cash flow rose 85.49%. Main drawback is weak cash conversion (operating cash flow to net income 0.16; free cash flow to net income 0.15) and margin volatility (EBIT margin 2.80%).

Income Statement

Prosus NV has demonstrated robust revenue growth over the past years, with a notable increase of 12.88% from 2024 to 2025. The gross profit margin for 2025 stands at a solid 42.52%, indicating efficient cost management. The net profit margin is significantly high at 200.45% for 2025, largely due to substantial net income. However, EBIT and EBITDA margins show volatility, with EBIT margin at a mere 2.80% but a very high EBITDA margin of 216.64% in 2025, reflecting strong earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.32 in 2025, indicating low leverage. The return on equity is impressive at 24.22% for 2025, showing effective utilization of equity. However, the equity ratio is moderately stable at 70.31%, suggesting sound financial health but potential room for improvement in asset management.

Cash Flow

The cash flow statement indicates a substantial free cash flow growth of 85.49% from 2024 to 2025, highlighting significant improvement in cash generation. The operating cash flow to net income ratio is 0.16 for 2025, which is low, suggesting a need for better conversion of income into cash. The free cash flow to net income ratio at 0.15 underscores a similar need for improvement, despite strong free cash flow figures.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.89B	6.17B	5.47B	5.76B	5.22B	5.12B
Gross Profit	2.91B	2.62B	2.22B	1.66B	1.37B	1.66B
EBITDA	8.06B	13.37B	4.94B	5.30B	9.90B	730.00M
Net Income	13.53B	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	16.24B	16.91B	17.16B	9.12B
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	1.90B	1.81B	978.00M	-349.00M	-817.00M	54.00M
Operating Cash Flow	1.99B	1.92B	1.04B	-120.00M	-605.00M	159.00M
Investing Cash Flow	16.20B	11.88B	209.00M	12.64B	4.39B	-3.22B
Financing Cash Flow	-9.56B	-8.74B	-8.12B	-12.45B	2.40B	2.45B

Prosus NV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PROSY, the sentiment is Neutral. The current price of 12.5 is above the 20-day moving average (MA) of 10.26, above the 50-day MA of 11.13, and above the 200-day MA of 12.12, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 53.82 is Neutral, neither overbought nor oversold. The STOCH value of 86.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PROSY.

Prosus NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PROSY	73 Outperform	$117.27B	6.97	25.58%	0.24%	16.17%	82.93%
RDDT	72 Outperform	$27.57B	80.88	20.89%	―	69.71%	―
TME	71 Outperform	$20.56B	30.10	14.05%	1.02%	13.86%	80.97%
PINS	68 Neutral	$11.89B	41.90	8.74%	―	16.79%	819.94%
DASH	66 Neutral	$73.77B	103.44	10.15%	―	24.46%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
BIDU	46 Neutral	$41.82B	77.69	2.02%	―	-2.70%	-56.75%