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Prosus N.V. Sponsored Adr (PROSY)
:PROSY
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Prosus NV
(OTC:PROSY)
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Rating:79Outperform
Price Target:
$15.50
▲(15.33% Upside)
Prosus NV's strong financial performance and positive earnings call are the most significant factors driving the score. The stock's bullish technical indicators further support its potential, though the overbought signals suggest caution. Valuation is reasonable, but the low dividend yield limits income potential. Competition and regulatory challenges are risks to monitor.
Prosus NV (PROSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$142.63B
Dividend Yield0.23%
Average Volume (3M)303.99K
Price to Earnings (P/E)12.7
Beta (1Y)0.86
Revenue Growth12.49%
EPS Growth99.03%
CountryUS
Employees21,048
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.65
Shares Outstanding11,894,739,000
10 Day Avg. Volume0
30 Day Avg. Volume303,986
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)2.18
Price to Sales (P/S)18.05
P/FCF Ratio61.38
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue17.24
Enterprise Value/Gross Profit42.93
Enterprise Value/Ebitda13.85
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.77
Revenue Forecast (FY)$8.25B
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, headquartered in the Netherlands. A subsidiary of Naspers, Prosus operates across various sectors including online classifieds, food delivery, payments and fintech, and e-commerce. The company is known for its strategic investments in several high-growth technology businesses, such as Tencent, and its own portfolio of online platforms and services that cater to millions of users globally.
How the Company Makes MoneyProsus generates revenue primarily through its stakes in technology companies, particularly its significant shareholding in Tencent, which provides a substantial portion of its earnings. Additionally, the company earns revenue from its various online services including food delivery platforms like iFood, classifieds platforms such as OLX, and fintech solutions through PayU. The company's revenue model is diversified, with income streams coming from transaction fees, advertising, and subscription services. Key partnerships with local businesses and integration of services also enhance its revenue potential, while its investment strategy allows it to capitalize on high-growth markets and emerging technologies.
Prosus NV Earnings Call Summary
Earnings Call Date:Jun 23, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 24, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with strong financial performance, effective cost management, and a strategic focus on growth through cultural transformation and innovation. However, there are notable challenges, including competition from Meituan and regulatory hurdles in Europe.Q4-2025 Updates
Positive Updates
Exceeded Revenue Target
Prosus delivered $443 million, surpassing the promised $400 million.
Dividend Increase
The company reported a 100% increase in dividends.
iFood's Profitability
The iFood business achieved an adjusted EBIT margin of 28%, driven by 50% revenue growth.
OLX Profit Growth
OLX's profits grew by 61% with an 18% increase in top-line revenue.
Corporate Cost Management
Corporate costs declined by 1% over the last year.
Capital Available for M&A
Prosus has approximately $11 billion in cash available for mergers and acquisitions.
Cultural Transformation
A significant shift in culture focused on entrepreneurship and innovation, expected to drive future growth.
Negative Updates
Competition Concerns
Challenges anticipated from Meituan's international expansion efforts, particularly in Brazil.
Regulatory Uncertainty
Ongoing regulatory review of Just Eat acquisition, although initial interactions with the EU were positive.
Underwhelming Performance in Europe
The European market is still in the nascent stages compared to Latin America and India.
Company Guidance
In the recent call, Prosus provided an optimistic outlook, emphasizing their strong financial performance and strategic goals. The company reported delivering $443 million, surpassing the promised $400 million, and announced a 100% increase in dividends. Key metrics highlighted include a 21% growth rate, operating leverage improvements, and a 28% adjusted EBIT margin for iFood with a 50% revenue growth. OLX also saw significant growth, with profits increasing by 61% on an 18% revenue rise. Prosus has approximately $11 billion in cash, with plans to focus on strategic investments, particularly in Latin America, Europe, and India. The company is committed to maintaining efficient operations, reducing corporate costs, and leveraging AI for innovation and operational efficiency. Looking forward, Prosus aims to become a leading lifestyle e-commerce brand across its key markets, with an ambition to achieve billions in revenue outside of Tencent's contributions.Prosus NV Financial Statement Overview
Summary
Prosus NV exhibits strong revenue growth and profitability, supported by a solid balance sheet and impressive free cash flow generation. Effective cost management and low financial leverage are strengths, though there is a need to enhance cash conversion metrics for long-term sustainability.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.75
Positive
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.68
Positive
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.80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.21B | 6.17B | 5.47B | 5.76B | 5.22B | 5.12B |
| Gross Profit | 2.49B | 2.62B | 2.22B | 1.66B | 1.37B | 1.66B |
| EBITDA | 7.73B | 13.37B | 4.94B | 5.30B | 9.90B | 730.00M |
| Net Income | 12.47B | 12.37B | 6.61B | 10.11B | 18.73B | 7.45B |
Balance Sheet | ||||||
| Total Assets | 72.59B | 72.59B | 61.82B | 65.08B | 71.34B | 55.73B |
| Cash, Cash Equivalents and Short-Term Investments | 18.90B | 18.90B | 18.99B | 20.87B | 13.57B | 6.03B |
| Total Debt | 16.45B | 16.45B | 16.24B | 16.91B | 17.16B | 9.12B |
| Total Liabilities | 21.46B | 21.46B | 20.53B | 20.45B | 20.82B | 12.54B |
| Stockholders Equity | 51.05B | 51.05B | 41.26B | 44.59B | 50.42B | 43.07B |
Cash Flow | ||||||
| Free Cash Flow | 1.86B | 1.81B | 978.00M | -349.00M | -817.00M | 54.00M |
| Operating Cash Flow | 1.95B | 1.92B | 1.04B | -120.00M | -605.00M | 159.00M |
| Investing Cash Flow | 12.02B | 11.88B | 209.00M | 12.64B | 4.39B | -3.22B |
| Financing Cash Flow | -8.84B | -8.74B | -8.12B | -12.45B | 2.40B | 2.45B |
Prosus NV Technical Analysis
Neutral
13.44
Price Trends
13.80
Negative
12.85
Positive
11.24
Positive
Market Momentum
-0.09
Positive
35.47
Neutral
-0.05
Positive
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 13.44 is below the 20-day moving average (MA) of 13.89, below the 50-day MA of 13.80, and above the 200-day MA of 11.24, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 35.47 is Neutral, neither overbought nor oversold. The STOCH value of -0.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PROSY.
Prosus NV Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $142.63B | 12.68 | 27.01% | 0.23% | 12.49% | 99.03% | |
73 Outperform | $16.86B | 8.65 | 51.49% | ― | 16.79% | 819.94% | |
72 Outperform | $34.77B | 101.06 | 15.22% | ― | 69.71% | ― | |
71 Outperform | $25.04B | 18.59 | 14.47% | 0.99% | 13.86% | 80.97% | |
67 Neutral | $81.73B | 96.21 | 10.11% | ― | 24.46% | ― | |
64 Neutral | $37.90B | 34.57 | 3.08% | ― | -2.70% | -59.65% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
PROSY
Prosus NV
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.