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Prosus NV (PROSY)
OTHER OTC:PROSY
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Prosus NV (PROSY) AI Stock Analysis

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PROSY

Prosus NV

(OTC:PROSY)

Rating:78Outperform
Price Target:
$12.50
▲(3.39%Upside)
Prosus NV's overall stock score is driven by strong financial performance and robust technical indicators, reflecting a solid growth trajectory. The company's low valuation metrics suggest potential undervaluation, while the positive outlook from the recent earnings call further supports a promising investment case. The lack of notable corporate events means the focus remains on financial and market performance.

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

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 a range of sectors, including online classifieds, food delivery, payments and fintech, and education technology. The company is a strategic investor and operator in these sectors, leveraging its expertise to grow and scale businesses across multiple markets. Headquartered in Amsterdam, the Netherlands, Prosus is part of Naspers, a global consumer internet group and one of the largest technology investors in the world.
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: 13.84%|
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 strong revenue growth and profitability, supported by a solid balance sheet and impressive free cash flow generation. Effective cost management and low leverage are evident, though there is a need for better cash conversion metrics.
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.
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Prosus NV Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.09
Price Trends
50DMA
10.94
Positive
100DMA
10.08
Positive
200DMA
9.14
Positive
Market Momentum
MACD
0.33
Negative
RSI
70.96
Negative
STOCH
94.54
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 12.09 is above the 20-day moving average (MA) of 11.40, above the 50-day MA of 10.94, and above the 200-day MA of 9.14, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 70.96 is Negative, neither overbought nor oversold. The STOCH value of 94.54 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$25.65B13.7748.41%17.81%1175.52%
78
Outperform
$132.47B11.7627.29%0.19%13.45%101.11%
76
Outperform
$31.66B9.009.85%-1.33%32.92%
75
Outperform
$27.62B231.535.77%64.12%
73
Outperform
$104.43B322.234.41%23.35%
72
Outperform
$30.08B24.8714.37%0.83%4.59%83.27%
62
Neutral
$41.98B-1.92-12.06%3.47%2.10%-71.01%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PROSY
Prosus NV
11.90
5.06
73.98%
BIDU
Baidu
89.40
0.66
0.74%
TME
Tencent Music Entertainment Group
21.60
7.87
57.32%
PINS
Pinterest
38.52
1.17
3.13%
DASH
DoorDash
246.44
139.23
129.87%
RDDT
Reddit Inc Class A
151.60
93.16
159.41%
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: Jul 08, 2025