Naspers (NPSNY) AI Stock Analysis

• Market Cap: $42.16B
• Dividend Yield: 0.19%
• Average Volume (3M): 52.91K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.35
• Revenue Growth: 11.37%
• EPS Growth: N/A
• Country: US
• Employees: 25,564
• Sector: Communication Services
• Sector Strength: 74
• Industry: Internet Content & Information
• EPS (TTM): 3.77
• Shares Outstanding: 822,156,400
• 10 Day Avg. Volume: 31,550
• 30 Day Avg. Volume: 52,906
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.46
• Price to Cash Flow (P/CF): 939.40
• P/FCF Ratio: 10.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Naspers' stock shows a stable overall profile with some strengths in profitability and valuation. However, challenges like declining revenue and potential overbought technical indicators temper the outlook. The company's solid net profit margin and reasonable valuation suggest potential for future appreciation if operational efficiencies improve.

Naspers Business Overview & Revenue Model

Company Description

Naspers Limited (NPSNY) is a global consumer internet group and one of the largest technology investors in the world. Headquartered in Cape Town, South Africa, Naspers operates across various sectors, including online classifieds, food delivery, payments, and fintech, and has significant investments in e-commerce and social media platforms. Its portfolio includes stakes in leading global internet companies, and it is known for its early investment in Tencent, a Chinese multinational technology conglomerate.

How the Company Makes Money

Naspers makes money primarily through its diverse investments and operations in high-growth markets. The company generates revenue from its majority-owned companies and its strategic investment portfolio. Key revenue streams include online classifieds, where it earns from advertising and listing fees across platforms like OLX Group; food delivery services through entities like iFood and Delivery Hero; and fintech services via its stake in PayU, which provides payment processing and credit solutions. A significant portion of its income is derived from its investment in Tencent, which contributes to earnings through dividends and capital appreciate. Additionally, Naspers has strategic partnerships and investments that enhance its financial performance, allowing the company to leverage its global presence and technological expertise.

Naspers Financial Statement Overview

Summary

Naspers presents a mixed financial picture with both strengths and weaknesses. The company shows strong net profitability and a reasonable balance between debt and equity. However, declining revenues and operational inefficiencies pose concerns. Cash flow improvements are evident, yet efficiency in translating income to cash could be better. Overall, Naspers appears to be relatively stable but with areas to address for improved financial health.

Income Statement

Naspers has shown mixed performance in its income statement. The company experienced a decline in revenue over the last year by approximately 5.1%, which is concerning. The gross profit margin stands at around 38.3% for the most recent year, indicating a solid ability to cover production costs. However, the net profit margin is notably high at 44.4%, driven by substantial net income relative to revenue, despite negative EBIT and fluctuating EBITDA margins. The volatile EBIT margin suggests challenges in operational efficiency.

Balance Sheet

The balance sheet of Naspers indicates a relatively stable financial position. The debt-to-equity ratio stands at 0.92, which is moderate and suggests a balanced approach to leverage. The return on equity (ROE) is approximately 16.0%, reflecting decent profitability for shareholders. The equity ratio is 28.7%, pointing to an adequate level of equity financing compared to total assets. Overall, the balance sheet demonstrates a reasonable mix of debt and equity, though there is room for improvement in equity strength.

Cash Flow

Naspers' cash flow statement reveals some challenges and opportunities. The free cash flow has improved significantly compared to the prior year, showing positive growth, which is a good sign for liquidity. However, the operating cash flow to net income ratio is low, at 0.36, indicating less cash generation from operations relative to net income. The free cash flow to net income ratio is higher, at 0.33, suggesting moderate efficiency in converting income to free cash flow. The cash flow situation indicates improvements but highlights the need for enhanced cash conversion efficiency.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
6.43B	6.78B	6.29B	5.93B	4.00B
	Gross Profit
2.46B	1.80B	1.54B	1.58B	1.09B
	EBIT
-562.00M	-637.00M	-822.00M	-1.09B	-651.00M
	EBITDA
7.78B	5.30B	9.90B	659.00M	97.00M
	Net Income Common Stockholders
2.85B	4.33B	12.22B	5.30B	3.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.26B	21.28B	13.66B	6.46B	8.36B
	Total Assets
62.27B	65.50B	71.32B	53.82B	36.32B
	Total Debt
16.50B	16.34B	16.19B	8.20B	3.82B
	Net Debt
14.68B	14.93B	14.74B	6.90B	2.90B
	Total Liabilities
20.99B	20.89B	21.19B	12.96B	6.39B
	Stockholders Equity
17.87B	18.96B	20.58B	29.19B	21.75B
Cash Flow		Free Cash Flow
936.00M	-479.00M	-981.00M	-68.00M	-310.00M
	Operating Cash Flow
1.03B	-177.00M	-702.00M	73.00M	-196.00M
	Investing Cash Flow
142.00M	12.62B	6.05B	-678.00M	2.44B
	Financing Cash Flow
-8.24B	-12.16B	754.00M	53.00M	-121.00M

Naspers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPSNY, the sentiment is Positive. The current price of 51.65 is above the 20-day moving average (MA) of 51.17, above the 50-day MA of 47.16, and above the 200-day MA of 44.11, indicating a neutral trend. The MACD of 0.93 indicates Positive momentum. The RSI at 52.59 is Neutral, neither overbought nor oversold. The STOCH value of 11.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NPSNY.

Naspers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTES	79 Outperform	$63.09B	15.79	22.60%	2.42%	0.23%	-0.09%
JD	78 Outperform	$67.31B	11.18	17.55%	1.77%	5.20%	77.60%
PDD	78 Outperform	$172.71B	11.78	45.06%	―	57.51%	82.28%
BIDU	76 Outperform	$34.31B	10.53	9.37%	―	-2.60%	19.69%
NPSNY	67 Neutral	$42.16B	13.53	17.75%	0.19%	11.37%	―
MOMO	61 Neutral	$1.13B	8.39	8.94%	―	-13.37%	-44.13%
Sector *	59 Neutral	$28.05B	1.00	-21.89%	4.05%	2.23%	-51.39%