Prosus NV (PROSY) AI Stock Analysis

• Market Cap: $135.33B
• Dividend Yield: 0.24%
• Average Volume (3M): 287.61K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.81
• 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: 0
• 30 Day Avg. Volume: 287,609
• 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: 1.16
• Enterprise Value/Revenue: 22.74
• Enterprise Value/Gross Profit: 53.76
• Enterprise Value/Ebitda: 19.42
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $14.50 ▲(16.00% Upside)

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

Diversified digital portfolio

A broad mix of online classifieds, food delivery, payments and fintech plus strategic tech investments creates multiple durable revenue streams. This diversification reduces exposure to any single market cycle, supports cross-selling and local scale advantages over a multi‑year horizon.

Strong free cash flow growth

Material FCF growth indicates improved cash generation capacity, enhancing financial flexibility to fund organic growth, M&A or shareholder returns. Sustained FCF expansion bolsters balance sheet resilience and reduces reliance on external financing over the medium term.

Low leverage with high ROE

Low leverage combined with a strong ROE signals efficient use of equity and conservative capital structure. This affords capacity to invest or endure downturns without pressuring solvency, supporting sustainable returns and strategic optionality across cycles.

Negative Factors

Weak cash conversion

Low conversion of reported earnings into operating and free cash raises questions about earnings quality and working capital dynamics. Persistently weak conversion can constrain reinvestment and make earnings more sensitive to non‑cash items, limiting durable cash availability.

Operating margin volatility

A very low and volatile EBIT margin implies core operating profitability is thin and inconsistent, even if non‑operating items drive headline profits. Long‑term growth depends on stabilizing underlying margins to ensure sustainable operating cash generation and predictability.

Earnings concentration risk

Heavy dependence on a single large investment for a substantial share of earnings creates structural concentration risk. Company results and cash flows can be materially affected by the investee's performance or valuation swings, reducing revenue stability over time.

Prosus NV Business Overview & Revenue Model

Company Description

Prosus 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 Money

Prosus 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 Financial Statement Overview

Summary

Prosus NV exhibits strong revenue growth and profitability, supported by a solid balance sheet and impressive free cash flow generation. While the company shows effective cost management and low financial leverage, there is a need to enhance cash conversion metrics. The overall financial health is robust, though attention to cash flow efficiency could enhance 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.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• Last Price: 12.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PROSY, the sentiment is Negative. The current price of 12.5 is below the 20-day moving average (MA) of 12.57, below the 50-day MA of 12.82, and above the 200-day MA of 11.85, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 36.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PROSY.

Prosus NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINS	77 Outperform	$18.10B	8.98	51.49%	―	16.79%	819.94%
DASH	76 Outperform	$88.49B	104.17	10.11%	―	24.46%	―
RDDT	75 Outperform	$43.78B	127.24	15.22%	―	69.71%	―
PROSY	73 Outperform	$135.33B	10.69	26.04%	0.24%	16.17%	82.93%
TME	71 Outperform	$23.23B	16.98	14.47%	1.02%	13.86%	80.97%
BIDU	68 Neutral	$51.35B	47.76	3.31%	―	-2.70%	-56.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%