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Prosus
(PRX)
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Rating:63Neutral
Price Target:
€38.00
▼(-0.13% Downside)
Action:Reiterated
Date:09/30/26
The score is driven primarily by improving financial momentum (notably the 2026 revenue rebound and strong capitalization) and a favorable valuation (low P/E). Offsetting these positives are weak technicals (below key moving averages with negative MACD) and earnings-call guidance pointing to flat FY2027 EBITDA as the company reinvests amid competitive pressure and cash-flow volatility.
Positive Factors
Strong Revenue Growth Outlook
The sharp FY2026 rebound and target for another substantial increase indicate expanding scale across Prosus’s digital platforms. Sustained revenue growth can strengthen network effects, improve operating leverage, and provide more resources to fund technology and ecosystem development.
Negative Factors
Intensifying Brazilian Competition
Aggressive competitor subsidies can force Prosus businesses to spend more on promotions while limiting pricing power and contribution margins. If this behavior persists, customer acquisition and retention may require structurally higher investment, reducing the cash returns from market growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth Outlook
The sharp FY2026 rebound and target for another substantial increase indicate expanding scale across Prosus’s digital platforms. Sustained revenue growth can strengthen network effects, improve operating leverage, and provide more resources to fund technology and ecosystem development.
Read all positive factors
Prosus (PRX) vs. iShares MSCI Netherlands ETF (EWN)
Market Cap
€71.71B
Dividend Yield0.56%
Average Volume (3M)3.10M
Price to Earnings (P/E)7.6
Beta (1Y)1.42
Revenue Growth45.37%
EPS Growth-4.52%
CountryNL
Employees41,998
SectorConsumer Cyclical
Sector Strength84
IndustryInternet Content & Information
Share Statistics
EPS (TTM)5.30
Shares Outstanding2,186,494,900
10 Day Avg. Volume2,629,519
30 Day Avg. Volume3,097,963
Financial Highlights & Ratios
PEG Ratio4.01
Price to Book (P/B)1.85
Price to Sales (P/S)10.30
P/FCF Ratio66.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€59.65Price Target Upside56.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)4.19
Revenue Forecast (FY)€12.49B
Prosus Business Overview & Revenue Model
Company Description
Prosus N.V. operates broadly across the e-commerce and internet sectors, overseeing a diverse portfolio of online platforms. These encompass services such as classified advertisements, financial technology and payment solutions (fintech), food del...
How the Company Makes Money
Prosus makes money primarily through (1) earnings and cash flows from its majority- or control-owned operating businesses and (2) investment returns from its equity stakes in listed and unlisted companies (most notably its stake in Tencent). Reven...
Prosus 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 progress on scale, margin recovery, and rapid growth in ecosystem adjacencies driven by AI and platform investments (revenue ~EUR 10bn, EBITDA EUR 1.3bn, free cash flow improvement of ~EUR 2bn, ecosystem $1.5bn growing >40%, multiple >50–100% growth rates across adjacencies). However, the company is facing significant near-term headwinds from intense competition (especially in Brazil), increased CPO and promotional spending by peers, the need to invest heavily in Just Eat and iFood which keeps FY2027 EBITDA roughly flat, and some cash flow/working-capital volatility. On balance, the business shows robust structural momentum and technology differentiation, while acknowledging short-term reinvestment and competitive pressures that will depress near-term profitability but aim to enable higher long-term returns.Positive Updates
Revenue Scale and Near-Term Growth Targets
Reported revenue of almost EUR 10 billion for FY2026 with management targets to grow to more than EUR 13 billion next year; CFO guidance also expects revenue to grow to at least $12.0–$12.3 billion next year.
Negative Updates
Intense Competition in Brazil Pressures Economics
Management reported intensified competitive subsidy activity in Brazil leading to higher cost-per-order (CPO); Prosus estimates competitors are spending ~USD 150 million per month combined and losing around USD 8 per order in parts of the market. iFood's Hits is losing ~BRL 1.5 per order currently (moving toward breakeven).
Read all updates
Q4-2026 Updates
Positive
Negative
Revenue Scale and Near-Term Growth Targets
Reported revenue of almost EUR 10 billion for FY2026 with management targets to grow to more than EUR 13 billion next year; CFO guidance also expects revenue to grow to at least $12.0–$12.3 billion next year.
Read all positive updates
Company Guidance
Guidance from the call emphasized continued top‑line and ecosystem-led growth while accepting near‑term reinvestment: group revenue was ~€10bn in FY2026 with management targeting >€13bn next year (another estimate cited $12–$12.3bn), EBITDA was €1.3bn (up 84% YoY) and leadership reiterated the ambition to deliver “billions” of EBITDA long‑term though group profitability is expected to be roughly flat in FY2027 as they invest in iFood and Just Eat; free cash flow moved from €‑0.5bn to €+1.5bn (+€2bn) over two years. They expect half of LATAM revenue in the next 12–24 months to come from adjacencies as the ecosystem (now >$1.5bn revenue, +40%+) already represents >50% of revenue (food 45%, fintech 17%, travel 29%, other 7%) and generates >$150m of profit; iFood is ~200m orders, the group has ~1bn customers, ~5m partners and ~€100bn GMV. High‑growth unit guidance includes grocery +50% (multi‑year), pharmacy +70% YoY, fintech lines ~100% YoY (credit +115%, infra +100%, voucher +60%), Rapido +110–120% YoY and Despegar +30% (40% in Brazil, 21% of Brazil revenue driven by cross‑sell). Technology rollouts—LCM models 100m LatAm customers, ToqanClaw (70k agents, 12k apps, 4k employees onboarded, expanding to 5m restaurant partners) and Zapia—are expected to drive efficiency and revenue synergies (e.g., €5m/month logistics savings = ~€60m/year), while capital allocation continues with an open $5bn buyback program funded by non‑core disposals (~$2bn last year, ~$1bn Q1) and dividend receipts (Tencent, FY2027 €0.10).Prosus Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
55
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.64B | 6.17B | 5.47B | 5.76B | 6.87B |
| Gross Profit | 4.32B | 2.62B | 2.22B | 1.66B | 2.06B |
| EBITDA | 457.93M | 13.37B | 7.75B | 10.48B | 19.16B |
| Net Income | 11.56B | 12.37B | 6.61B | 10.11B | 18.73B |
Balance Sheet | |||||
| Total Assets | 78.99B | 72.59B | 61.82B | 65.08B | 71.34B |
| Cash, Cash Equivalents and Short-Term Investments | 12.53B | 18.90B | 18.99B | 20.87B | 13.57B |
| Total Debt | 17.57B | 16.45B | 16.33B | 16.27B | 16.08B |
| Total Liabilities | 25.18B | 21.46B | 20.53B | 20.45B | 20.82B |
| Stockholders Equity | 53.72B | 51.05B | 41.26B | 44.59B | 50.42B |
Cash Flow | |||||
| Free Cash Flow | 1.50B | 1.81B | 978.00M | -383.00M | -847.00M |
| Operating Cash Flow | 1.60B | 1.92B | 1.04B | -120.00M | -605.00M |
| Investing Cash Flow | 6.75B | 11.88B | 209.00M | 12.64B | 4.39B |
| Financing Cash Flow | -8.80B | -8.74B | -8.12B | -12.45B | 2.40B |
Prosus Technical Analysis
Neutral
38.05
Price Trends
37.28
Negative
38.13
Negative
41.39
Negative
Market Momentum
-0.47
Negative
49.80
Neutral
41.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:PRX, the sentiment is Neutral. The current price of 38.05 is above the 20-day moving average (MA) of 35.72, above the 50-day MA of 37.28, and below the 200-day MA of 41.39, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 49.80 is Neutral, neither overbought nor oversold. The STOCH value of 41.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:PRX.
Prosus Peers Comparison
UnderperformOutperform
Sector (61)
NL:PRX
Prosus
36.00
-23.63
-39.63%
NL:UMG
Universal Music Group
14.90
-7.67
-33.99%
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.