Prosus NV (PROSY) AI Stock Analysis

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Prosus NV

(OTC:PROSY)

Rating:67Neutral

Price Target:―

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. SPDR S&P 500 ETF (SPY)

Market Cap

$122.02B

Dividend Yield0.2%

Average Volume (3M)49.64K

Price to Earnings (P/E)10.8

Beta (1Y)0.95

Revenue Growth16.14%

EPS GrowthN/A

CountryUS

Employees21,048

SectorCommunication Services

Sector Strength92

IndustryInternet Content & Information

Share Statistics

EPS (TTM)0.66

Shares Outstanding11,894,739,000

10 Day Avg. Volume67,761

30 Day Avg. Volume49,642

Financial Highlights & Ratios

PEG Ratio-0.26

Price to Book (P/B)2.36

Price to Sales (P/S)0.00

P/FCF Ratio-301.36

Enterprise Value/Market Cap0.92

Enterprise Value/Revenue5.08

Enterprise Value/Gross Profit46.98

Enterprise Value/Ebitda10.10

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 Earnings Call Summary

Earnings Call Date:Jun 23, 2025

(Q4-2025)

% Change Since: 4.99%|

Next Earnings Date:Nov 24, 2025

Earnings Call Sentiment Positive

Prosus reported strong financial performance, exceeding revenue and profit targets, and doubling dividends, which indicates a robust financial position and strategic focus. However, it faces competitive pressures and regulatory challenges in its expansion efforts. The overall sentiment is optimistic due to successful cultural transformation and innovation initiatives, although there are market and regulatory challenges to be addressed.

Q4-2025 Updates

Positive Updates

Exceeded Revenue Targets

Prosus delivered $443 million, surpassing the promised $400 million. This marks a strong start under the new CEO.

Significant Dividend Increase

Prosus doubled its dividends, indicating strong financial health and commitment to returning value to shareholders.

Strong Growth in Key Segments

The iFood business achieved a 28% adjusted EBIT margin with 50% revenue growth, and OLX grew its top line by 18% with profits up by 61%.

Positive Cash Flow and Investment Strategy

Prosus has $11 billion in cash available for M&A and strategic investments, maintaining an investment-grade policy.

Cultural Transformation and Innovation

Significant cultural change within Prosus, focusing on speed, entrepreneurship, and communication, driving innovation and operational improvements.

Negative Updates

Competitive Pressures

Concerns about increased competition, particularly for iFood with new market entrants like Meituan.

Challenges in International Expansion

Although there are opportunities in the Middle East and Africa, the focus remains on Latin America, India, and Europe, potentially limiting immediate growth in other regions.

Regulatory Hurdles

Ongoing regulatory reviews, particularly concerning the Just Eat acquisition, could pose challenges to strategic goals.

Company Guidance

In the recent call, Prosus provided guidance that emphasized several key metrics. The company reported a significant increase in adjusted EBIT, with a growth of 21% over the past year, driven by strong performance in businesses like iFood and OLX, which saw revenue growths of 50% and 18%, respectively. iFood achieved an adjusted EBIT margin of 28%, while OLX increased its profits by 61%. Prosus also highlighted a 100% increase in dividends and a reduction of corporate costs by 1%. The call underscored the company's ambition to become a leading lifestyle e-commerce brand in LatAm, Europe, and India, with a strategic focus on profitability, innovation, and leveraging AI to enhance operational efficiency. Looking ahead, Prosus is targeting more than $800 million in EBIT by FY 2026 and aims to continue improving free cash flow in line with profitability.

Prosus NV Financial Statement Overview

Summary

Prosus NV exhibits a mixed financial profile. There are positive aspects such as improved gross margins and a solid balance sheet, but challenges exist 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.

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.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	5.87B	5.47B	5.76B	5.22B	5.12B	3.33B
Gross Profit	2.40B	2.22B	1.66B	1.37B	1.66B	970.00M
EBITDA	2.65B	4.94B	5.30B	9.90B	730.00M	213.00M
Net Income	7.81B	6.61B	10.11B	18.73B	7.45B	3.77B
Balance Sheet
Total Assets	69.11B	61.82B	65.08B	71.34B	55.73B	35.77B
Cash, Cash Equivalents and Short-Term Investments	18.29B	18.99B	20.87B	13.57B	6.03B	8.02B
Total Debt	16.55B	16.24B	16.91B	17.16B	9.12B	3.97B
Total Liabilities	21.16B	20.53B	20.45B	20.82B	12.54B	6.46B
Stockholders Equity	47.90B	41.26B	44.59B	50.42B	43.07B	29.10B
Cash Flow
Free Cash Flow	1.35B	978.00M	-349.00M	-817.00M	54.00M	-310.00M
Operating Cash Flow	1.42B	1.04B	-120.00M	-605.00M	159.00M	-209.00M
Investing Cash Flow	12.88B	209.00M	12.64B	4.39B	-3.22B	2.33B
Financing Cash Flow	-6.89B	-8.12B	-12.45B	2.40B	2.45B	-46.00M

Prosus NV Technical Analysis

Technical Analysis Sentiment

Positive

Last Price11.15

Price Trends

50DMA

10.17

Positive

100DMA

9.56

Positive

200DMA

8.81

Positive

Market Momentum

MACD

0.26

Negative

RSI

63.65

Neutral

STOCH

95.35

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 11.15 is above the 20-day moving average (MA) of 10.82, above the 50-day MA of 10.17, and above the 200-day MA of 8.81, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 63.65 is Neutral, neither overbought nor oversold. The STOCH value of 95.35 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINS	80 Outperform	$24.32B	13.05	48.41%	―	17.81%	1175.52%
TME	76 Outperform	$27.59B	22.30	14.37%	0.94%	4.59%	83.27%
RDDT	74 Outperform	$26.39B	221.24	5.77%	―	64.12%	―
BIDU	73 Outperform	$29.96B	8.54	9.85%	―	-1.33%	32.92%
DASH	73 Outperform	$102.68B	316.83	4.41%	―	23.35%	―
PROSY	67 Neutral	$122.02B	10.85	27.29%	0.20%	16.14%	―
Sector *	61 Neutral	$41.40B	-1.28	-14.21%	3.95%	2.45%	-73.69%

* Communication Services Sector Average

Performance Comparison

PROSY

Prosus NV

11.15

4.06

57.26%

BIDU

Baidu

86.13

-0.08

-0.09%

TME

Tencent Music Entertainment Group

19.10

4.93

34.79%

PINS

35.95

-7.13

-16.55%

DASH

DoorDash

242.32

133.81

123.32%

RDDT

Reddit Inc Class A

143.01

76.42

114.76%

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.Date of analysis: Feb 05, 2025