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Prosus NV
(OTC:PROSY)
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Rating:66Neutral
Price Target:
$9.50
▼(-24.00% Downside)
Action:Reiterated
Date:07/01/26
The score is driven primarily by solid financial performance (strong revenue growth and a sound balance sheet, but uneven operating profitability and cash-conversion quality) and a favorable valuation (low P/E and high dividend yield). These positives are tempered by weak technical trend signals (price below all key moving averages) and earnings-call guidance pointing to near-term profitability being constrained by continued investment and competitive pressure.
Positive Factors
Revenue scale & growth
Large and growing top line provides durable competitive advantages: scale lowers unit costs, improves bargaining with partners, and funds cross‑sell and investment. Management’s €10bn→€13bn target signals multi‑market expansion that can sustain higher long‑term revenue share and platform leverage.
Negative Factors
Thin operating profitability
Persistently low and volatile operating margins mean underlying platform economics remain sensitive to promotional spend and cost inflation. Even with revenue growth, thin operating profit constrains free cash flow resilience and makes results more exposed to execution setbacks or market pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue scale & growth
Large and growing top line provides durable competitive advantages: scale lowers unit costs, improves bargaining with partners, and funds cross‑sell and investment. Management’s €10bn→€13bn target signals multi‑market expansion that can sustain higher long‑term revenue share and platform leverage.
Read all positive factors
Prosus NV (PROSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$86.30B
Dividend Yield0.24%
Average Volume (3M)192.74K
Price to Earnings (P/E)8.2
Beta (1Y)0.87
Revenue Growth57.89%
EPS Growth3.21%
CountryUS
Employees21,048
SectorConsumer Cyclical
Sector Strength84
IndustryInternet Content & Information
Share Statistics
EPS (TTM)1.06
Shares Outstanding10,932,475,000
10 Day Avg. Volume294,330
30 Day Avg. Volume192,737
Financial Highlights & Ratios
PEG Ratio3.00
Price to Book (P/B)1.90
Price to Sales (P/S)10.47
P/FCF Ratio67.25
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue10.03
Enterprise Value/Gross Profit22.37
Enterprise Value/Ebitda31.17
Forecast
1Y Price Target
$11.10Price Target Upside-11.20% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.87
Revenue Forecast (FY)$12.15B
Prosus NV Business Overview & Revenue Model
Company Description
Prosus N.V. is actively involved in the digital commerce and internet services sector. Its business activities cover a broad spectrum of online platforms, such as digital classifieds, financial technology (fintech) and payment solutions, meal deli...
How the Company Makes Money
Prosus makes money through (1) dividends and other distributions from equity-accounted and publicly listed investments, most notably its stake in Tencent, and (2) revenues generated by its consolidated operating businesses. The consolidated operat...
Prosus NV Earnings Call Summary
Earnings Call Date:Jun 29, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line scale, material improvements in EBITDA and free cash flow, rapid growth across adjacencies (grocery, pharmacy, fintech), and proprietary AI/agent technology that management says is materially lowering costs and driving cross-sell. At the same time, near-term profitability is being intentionally traded for investment in growth (notably iFood adjacencies and Just Eat turnaround), and intense promotional competition in Brazil has pressured unit economics and increased cost-per-order. Operational and rollout execution risks remain for scaling AI and a unified platform. Overall, the positives around large revenue base, significant EBITDA improvement, strong adjacency growth, and technology-led cost advantages outweigh the near-term profitability headwinds and competitive pressures.Positive Updates
Revenue Scale and Near-Term Growth Targets
Reported revenue of almost EUR 10 billion (FY2026) with management guiding to grow to more than EUR 13 billion next year (also referenced a $12–$12.3 billion range in commentary).
Negative Updates
Intense Competition in Brazil and Elevated CPO
Increased competition drove up cost-per-order (CPO) and required higher promotional/vouchering spend; management estimates rivals are spending ~USD 150 million per month combined and competitors losing ~USD 8 per order in targeted segments.
Read all updates
Q4-2026 Updates
Positive
Negative
Revenue Scale and Near-Term Growth Targets
Reported revenue of almost EUR 10 billion (FY2026) with management guiding to grow to more than EUR 13 billion next year (also referenced a $12–$12.3 billion range in commentary).
Read all positive updates
Company Guidance
Management guided that Prosus expects continued top‑line expansion—reporting almost €10bn in FY2026 revenue and targeting >€13bn next year (Nico also cited $12–$12.3bn)—while near‑term group EBITDA is expected to be roughly flat in FY2027 despite having delivered €1.3bn EBITDA this year (up 84% YoY) and improving free cash flow by €2bn over two years (from €‑0.5bn to €1.5bn); management reaffirmed a multi‑billion EBITDA ambition longer term. They said the Latin America ecosystem (≈1bn customers, ≈5m partners, ≈€100bn GMV, iFood ≈200m orders) will drive more adjacencies—already $1.5bn of non‑food revenue growing >40% and accounting for >50% of revenue (pure food 45%, fintech 17%, travel 29%, other marketplaces 7%) and >$150m profit—with grocery +50% (3‑yr CAGR), pharmacy +70% YoY, fintech lines often +100% YoY (credit for restaurants +115%, infra +100%, new voucher +60%). Operationally they flagged JET recovery (from ‑9% to ‑4% and target to +10%), unified platform rollouts (one country in months, full country <6 months), LCM at ~90% lower cost, 100m LATAM customers modeled, ToqanClaw (70k agents, 12k apps, 4k employees onboarded, expanded to 5m restaurant partners), expected logistics savings of €5m/month (~€60m/year), competitor subsidy spend ~$150m/month, a $0.10 FY2027 dividend already received, and an open $5bn buyback program.Prosus NV Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
76
Positive
Cash Flow
62
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.73B | 6.17B | 5.47B | 5.76B | 5.22B |
| Gross Profit | 4.36B | 2.62B | 2.22B | 1.66B | 1.37B |
| EBITDA | 462.42M | 13.37B | 4.94B | 5.30B | 9.90B |
| Net Income | 11.67B | 12.37B | 6.61B | 10.11B | 18.73B |
Balance Sheet | |||||
| Total Assets | 79.08B | 72.59B | 61.82B | 65.08B | 71.34B |
| Cash, Cash Equivalents and Short-Term Investments | 12.54B | 18.90B | 18.99B | 20.87B | 13.57B |
| Total Debt | 17.59B | 16.45B | 16.24B | 16.91B | 17.16B |
| Total Liabilities | 25.21B | 21.46B | 20.53B | 20.45B | 20.82B |
| Stockholders Equity | 53.78B | 51.05B | 41.26B | 44.59B | 50.42B |
Cash Flow | |||||
| Free Cash Flow | 1.52B | 1.81B | 978.00M | -349.00M | -817.00M |
| Operating Cash Flow | 1.61B | 1.92B | 1.04B | -120.00M | -605.00M |
| Investing Cash Flow | 6.81B | 11.88B | 209.00M | 12.64B | 4.39B |
| Financing Cash Flow | -8.89B | -8.74B | -8.12B | -12.45B | 2.40B |
Prosus NV Technical Analysis
Negative
12.50
Price Trends
9.28
Negative
9.63
Negative
11.33
Negative
Market Momentum
-0.19
Positive
42.97
Neutral
36.74
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 above the 20-day moving average (MA) of 9.01, above the 50-day MA of 9.28, and above the 200-day MA of 11.33, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 42.97 is Neutral, neither overbought nor oversold. The STOCH value of 36.74 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $33.42B | 46.53 | 25.48% | ― | 70.64% | 477.34% | |
75 Outperform | $12.02B | 9.91 | 10.97% | 1.02% | 17.25% | -3.49% | |
67 Neutral | $11.78B | 42.82 | 7.76% | ― | 16.30% | -82.47% | |
67 Neutral | $80.40B | 86.32 | 9.57% | ― | 30.96% | 167.38% | |
66 Neutral | $86.30B | 8.18 | 25.58% | 0.24% | 57.89% | 3.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $38.62B | 789.67 | 0.13% | ― | -2.40% | -98.39% |
* Consumer Cyclical Sector Average
PROSY
Prosus NV
8.69
-2.23
-20.41%
BIDU
Baidu
114.29
27.85
32.22%
TME
Tencent Music Entertainment Group
8.35
-10.33
-55.31%
PINS
Pinterest
21.03
-14.71
-41.16%
DASH
DoorDash
184.53
-54.27
-22.73%
RDDT
Reddit Inc Class A
173.58
14.24
8.94%
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.