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Prosus N.V. Sponsored Adr (PROSY)
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Prosus NV (PROSY) AI Stock Analysis

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PROSY

Prosus NV

(OTC:PROSY)

Rating:76Outperform
Price Target:
$14.00
▲(11.55% Upside)
Prosus NV's strong financial performance and bullish technical indicators are the primary drivers of its high score. The company's robust revenue growth, solid balance sheet, and impressive earnings call results underscore its potential. However, the stock's valuation is moderate, and there are concerns about competition and regulatory challenges. Overall, Prosus NV is well-positioned for growth, but investors should monitor competitive and regulatory developments.

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

Prosus NV Business Overview & Revenue Model

Company DescriptionProsus 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 MoneyProsus NV generates revenue primarily through its investments and operations in consumer internet services. The company owns significant stakes in leading internet companies, including Tencent in China, which contributes substantially to its income through dividends and capital appreciation. Additionally, Prosus earns revenue from its online classifieds platforms by charging fees for advertisements and premium listings, while its food delivery businesses generate income through delivery fees and restaurant commissions. The company's payments and fintech segment earns money by providing financial services and charging transaction fees. Prosus also invests in and develops education technology platforms, which generate revenue through subscription fees and educational content sales. Strategic partnerships, acquisitions, and investments in high-growth markets further bolster its revenue streams.

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. 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
75
Positive
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
68
Positive
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
80
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue6.21B6.17B5.47B5.76B5.22B5.12B
Gross Profit2.49B2.62B2.22B1.66B1.37B1.66B
EBITDA7.73B13.37B4.94B5.30B9.90B730.00M
Net Income12.47B12.37B6.61B10.11B18.73B7.45B
Balance Sheet
Total Assets72.59B72.59B61.82B65.08B71.34B55.73B
Cash, Cash Equivalents and Short-Term Investments18.90B18.90B18.99B20.87B13.57B6.03B
Total Debt16.45B16.45B16.24B16.91B17.16B9.12B
Total Liabilities21.46B21.46B20.53B20.45B20.82B12.54B
Stockholders Equity51.05B51.05B41.26B44.59B50.42B43.07B
Cash Flow
Free Cash Flow1.86B1.81B978.00M-349.00M-817.00M54.00M
Operating Cash Flow1.95B1.92B1.04B-120.00M-605.00M159.00M
Investing Cash Flow12.02B11.88B209.00M12.64B4.39B-3.22B
Financing Cash Flow-8.84B-8.74B-8.12B-12.45B2.40B2.45B

Prosus NV Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.55
Price Trends
50DMA
11.82
Positive
100DMA
10.99
Positive
200DMA
9.70
Positive
Market Momentum
MACD
0.16
Positive
RSI
60.70
Neutral
STOCH
82.77
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 12.55 is above the 20-day moving average (MA) of 12.30, above the 50-day MA of 11.82, and above the 200-day MA of 9.70, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 60.70 is Neutral, neither overbought nor oversold. The STOCH value of 82.77 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$39.08B26.5114.07%0.71%10.66%84.89%
78
Outperform
$25.80B13.0548.08%17.00%901.05%
78
Outperform
$107.06B142.729.71%23.78%
76
Outperform
$135.78B12.1227.29%0.12%13.45%101.11%
75
Outperform
$37.50B9.9610.33%-1.32%42.56%
73
Outperform
$43.04B202.7510.11%69.97%
60
Neutral
$46.60B4.15-11.40%4.15%1.85%-42.71%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PROSY
Prosus NV
12.55
5.45
76.76%
BIDU
Baidu
108.47
24.52
29.21%
TME
Tencent Music Entertainment Group
25.47
15.84
164.49%
PINS
Pinterest
35.29
6.07
20.77%
DASH
DoorDash
256.53
126.51
97.30%
RDDT
Reddit Inc Class A
240.20
180.33
301.20%
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: Aug 18, 2025