Prosus NV (PROSY) AI Stock Analysis

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Prosus NV

(OTC:PROSY)

67Neutral

Prosus NV's overall score reflects a mixed financial and technical profile with notable strengths in recent earnings growth and strategic financial activities. However, operational challenges and uncertainties in capital allocation weigh on its potential. While there is confidence in future growth, investors should be cautious of the potential volatility in cash flows and the impact of increased central costs.

Prosus NV (PROSY) vs. S&P 500 (SPY)

Market Cap

$92.70B

Dividend Yield0.19%

Average Volume (3M)43.65K

Price to Earnings (P/E)13.4

Beta (1Y)0.97

Revenue Growth16.14%

EPS GrowthN/A

CountryUS

Employees21,048

SectorCommunication Services

Sector Strength79

IndustryInternet Content & Information

Share Statistics

EPS (TTM)0.28

Shares Outstanding11,894,739,000

10 Day Avg. Volume130,953

30 Day Avg. Volume43,651

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)14.25

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Prosus NV Business Overview & Revenue Model

Company DescriptionProsus NV is a global consumer internet group and one of the largest technology investors in the world. It operates across various sectors including online classifieds, food delivery, payments and fintech, and edtech. The company is known for its significant investments in leading internet companies and operates in markets with long-term growth potential.

How the Company Makes MoneyProsus NV makes money through its diverse portfolio of internet-based businesses and strategic investments. The company earns revenue primarily from its holdings in online platforms, such as its substantial stake in Tencent, one of the world's largest internet and technology companies. Prosus also generates income from its direct operations in online classifieds, food delivery services, and financial technology solutions. In addition, the company benefits from monetization strategies in its edtech ventures. Prosus leverages its global presence and expertise to identify and invest in promising internet companies, contributing to its revenue generation.

Prosus NV Financial Statement Overview

Summary

Prosus NV exhibits a mixed financial profile. While there are positive aspects such as improved gross margins and a solid balance sheet, the company faces challenges with negative EBIT margins and fluctuating cash flows. The high net income margin in the latest period may not be indicative of future performance due to its non-operational nature. Continued focus on operational efficiencies and cash flow consistency will be crucial for sustainable growth.

Income Statement

Neutral

Prosus NV has shown inconsistent revenue growth over the past years, with a recent decline in total revenue from 2023 to 2024. Gross profit margins have improved, indicating better cost management. However, EBIT margins remain negative, reflecting ongoing operational challenges. The net profit margin in the latest year is unusually high due to non-operational factors, which may not be sustainable.

Balance Sheet

Positive

The company's balance sheet reveals a strong equity position, with a decreasing debt-to-equity ratio, indicating prudent financial management. Return on equity is positive, suggesting effective use of shareholder funds. The equity ratio remains strong, highlighting stability in the asset base.

Cash Flow

Positive

Prosus NV's cash flow position has improved, with positive operating and free cash flows in the recent period. The free cash flow to net income ratio indicates a healthy conversion of profits into cash. However, historical fluctuations in cash flows suggest potential volatility in cash generation capabilities.

Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
5.47B	5.76B	5.22B	5.12B	3.33B
	Gross Profit
2.22B	1.66B	1.37B	1.66B	970.00M
	EBIT
-546.00M	-583.00M	-749.00M	-976.00M	-609.00M
	EBITDA
4.94B	5.30B	9.90B	730.00M	213.00M
	Net Income Common Stockholders
6.61B	10.11B	18.73B	7.45B	3.77B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.99B	20.87B	13.57B	6.03B	8.02B
	Total Assets
61.82B	65.08B	71.34B	55.73B	35.77B
	Total Debt
16.24B	16.91B	17.16B	9.12B	3.97B
	Net Debt
14.06B	7.34B	7.52B	5.54B	-207.00M
	Total Liabilities
20.53B	20.45B	20.82B	12.54B	6.46B
	Stockholders Equity
41.26B	44.59B	50.42B	43.07B	29.10B
Cash Flow		Free Cash Flow
978.00M	-349.00M	-817.00M	54.00M	-310.00M
	Operating Cash Flow
1.04B	-120.00M	-605.00M	159.00M	-209.00M
	Investing Cash Flow
209.00M	12.64B	4.39B	-3.22B	2.33B
	Financing Cash Flow
-8.12B	-12.45B	2.40B	2.45B	-46.00M

Prosus NV Technical Analysis

Technical Analysis Sentiment

Positive

Last Price8.78

Price Trends

50DMA

9.01

Negative

100DMA

8.43

Positive

200DMA

8.08

Positive

Market Momentum

MACD

-0.14

Negative

RSI

50.38

Neutral

STOCH

96.74

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PROSY, the sentiment is Positive. The current price of 8.78 is above the 20-day moving average (MA) of 8.76, below the 50-day MA of 9.01, and above the 200-day MA of 8.08, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 96.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PROSY.

Prosus NV Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINS	76 Outperform	$16.71B	9.13	47.49%	―	19.35%	―
TME	74 Outperform	$21.24B	20.00	10.75%	1.11%	0.63%	34.09%
DASH	70 Outperform	$72.81B	648.38	1.68%	―	24.17%	―
BIDU	68 Neutral	$29.56B	9.28	9.14%	―	-2.60%	16.71%
PROSY	67 Neutral	$92.70B	13.43	18.15%	0.19%	16.14%	―
RDDT	66 Neutral	$18.39B	―	-27.12%	―	61.71%	-442.46%
Sector *	58 Neutral	$13.15B	6.73	-2.46%	3.87%	2.36%	-36.74%

* Communication Services Sector Average

Performance Comparison

PROSY

Prosus NV

8.78

2.12

31.83%

BIDU

Baidu

85.06

-14.13

-14.25%

TME

Tencent Music Entertainment Group

12.49

0.22

1.79%

PINS

24.68

-8.17

-24.87%

DASH

DoorDash

176.61

49.85

39.33%

RDDT

Reddit Inc Class A

101.66

58.51

135.60%

Prosus NV Earnings Call Summary

Earnings Call Date: Dec 2, 2024 | % Change Since: 7.86% | Next Earnings Date: Jun 30, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong revenue growth, significant IPO activities, and improvements in cash flow and operations through AI integration. However, there are concerns about capital allocation and increased central costs. The guidance provided for the upcoming year indicates confidence in continued growth.

Highlights

Strong Revenue Growth

The company experienced a 26% growth in revenue and an increase in Ecommerce adjusted EBIT to $181 million.

Significant IPO and Asset Sales

The company conducted a $13 billion IPO and sold $2 billion in assets.

Improved Cash Flow

Free cash flow improved by 74% compared to the previous period, with consolidated businesses contributing more than $200 million to this improvement.

AI and Ecosystem Integration

The company is investing in AI to improve operations, with notable improvements like a 20% reduction in cost per acquisition of users and a 10x improvement in fraud reduction.

Guidance Announcement

For the first time, the company provided guidance of $6.2 billion in revenue and $400 million in EBIT for the year.

Lowlights

Uncertain Capital Allocation Strategy

While there is a significant amount of cash available, there is no specific plan for capital return to shareholders beyond the current share repurchase program.

Increased Central Costs

There has been an increase in central costs due to restructuring, which may impact profitability in the short term.

Lack of Specific Timeline for IPOs

Although there is a focus on IPOs in India, there is no specific timeline or plan for IPOs of major assets like iFood.

Company Guidance

During the call, the company provided guidance for the fiscal year, projecting $6.2 billion in revenue and $400 million in EBIT, indicating confidence in continued growth and profitability. The company reported a 26% increase in growth and a fivefold increase in EBIT. Recent financial activities included a $13 billion IPO and $2 billion in asset sales, with $10 billion available for investment. The focus is on leveraging the ecosystem and investments to drive operational excellence and innovation. The company aims to maintain a disciplined approach to capital allocation, emphasizing opportunities that enhance the ecosystem and deliver strong returns, while also considering potential returns to shareholders.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.