JSE:NPN

Stock Analysis Report

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Executive Summary

Naspers Limited operates in consumer Internet industry worldwide.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Naspers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NPN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.8%

NPN

2.7%

ZA Online Retail

6.1%

ZA Market


1 Year Return

-15.5%

NPN

38.1%

ZA Online Retail

-20.8%

ZA Market

Return vs Industry: NPN underperformed the ZA Online Retail industry which returned 38.1% over the past year.

Return vs Market: NPN exceeded the ZA Market which returned -20.8% over the past year.


Shareholder returns

NPNIndustryMarket
7 Day4.8%2.7%6.1%
30 Day0.5%10.6%6.9%
90 Day18.4%24.3%-3.0%
1 Year30.7%-15.5%40.5%38.1%-9.3%-20.8%
3 Year74.7%9.0%82.7%78.5%8.2%-12.5%
5 Year152.4%56.7%191.9%175.3%15.2%-13.9%

Price Volatility Vs. Market

How volatile is Naspers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Naspers undervalued compared to its fair value and its price relative to the market?

24.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NPN (ZAR2923.2) is trading above our estimate of fair value (ZAR215.66)

Significantly Below Fair Value: NPN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NPN is poor value based on its PE Ratio (24.6x) compared to the Online Retail industry average (22.9x).

PE vs Market: NPN is poor value based on its PE Ratio (24.6x) compared to the ZA market (8.4x).


Price to Earnings Growth Ratio

PEG Ratio: NPN is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: NPN is overvalued based on its PB Ratio (3.5x) compared to the XX Online Retail industry average (2.8x).


Next Steps

Future Growth

How is Naspers forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NPN's forecast earnings growth (21.7% per year) is above the savings rate (9.5%).

Earnings vs Market: NPN's earnings (21.7% per year) are forecast to grow faster than the ZA market (19.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NPN's revenue (17.7% per year) is forecast to grow faster than the ZA market (8.3% per year).

High Growth Revenue: NPN's revenue (17.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NPN's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has Naspers performed over the past 5 years?

41.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NPN has high quality earnings.

Growing Profit Margin: NPN's current net profit margins (86.9%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: NPN's earnings have grown significantly by 41.5% per year over the past 5 years.

Accelerating Growth: NPN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NPN had negative earnings growth (-77.3%) over the past year, making it difficult to compare to the Online Retail industry average (-5.8%).


Return on Equity

High ROE: NPN's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is Naspers's financial position?


Financial Position Analysis

Short Term Liabilities: NPN's short term assets ($10.2B) exceed its short term liabilities ($2.6B).

Long Term Liabilities: NPN's short term assets ($10.2B) exceed its long term liabilities ($3.2B).


Debt to Equity History and Analysis

Debt Level: NPN's debt to equity ratio (11.3%) is considered satisfactory.

Reducing Debt: NPN's debt to equity ratio has reduced from 46.4% to 11.3% over the past 5 years.

Debt Coverage: NPN's debt is not well covered by operating cash flow (5.9%).

Interest Coverage: Insufficient data to determine if NPN's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Naspers's current dividend yield, its reliability and sustainability?

0.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NPN's dividend (0.22%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (4.19%).

High Dividend: NPN's dividend (0.22%) is low compared to the top 25% of dividend payers in the ZA market (11.59%).


Stability and Growth of Payments

Stable Dividend: NPN is not paying a notable dividend for the ZA market, therefore no need to check if payments are stable.

Growing Dividend: NPN is not paying a notable dividend for the ZA market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NPN is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NPN's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.9yrs

Average management tenure


CEO

Bob van Dijk (46yo)

6.17yrs

Tenure

US$12,886,000

Compensation

Mr. Bob van Dijk has been the Chief Executive Officer of Naspers Limited since April 1, 2014. Mr. van Dijk is Chief Executive Officer of Prosus N.V. He has experience in the technology sector and has been  ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD12.89M) is above average for companies of similar size in the ZA market ($USD2.93M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bob van Dijk
CEO & Executive Director6.17yrsUS$12.89m0.11% $1.4b
Vasileios Sgourdos
CFO, Financial Director & Executive Director5.92yrsUS$7.48m0.023% $282.7m
Pat Kolek
Group Chief Operating Officer3.92yrsno datano data
Eoin Ryan
Head of Investor Relationsno datano datano data
David Tudor
Group General Counsel & Legal Compliance Officer4.83yrsno datano data
Aileen O'Toole
Group Chief People Officer6.08yrsno datano data
Meloy Horn
Chief Business Officerno datano datano data
Gillian Kisbey-Green
Company Secretary11.75yrsno datano data
John Scheepbouwer
Chief Executive Officer of OLX Groupno datano datano data
Larry Illg
CEO of Online Food Delivery & Ventures5yrsno datano data

5.9yrs

Average Tenure

48yo

Average Age

Experienced Management: NPN's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bob van Dijk
CEO & Executive Director6.17yrsUS$12.89m0.11% $1.4b
Vasileios Sgourdos
CFO, Financial Director & Executive Director5.92yrsUS$7.48m0.023% $282.7m
Craig Enenstein
Independent Non-Executive Director6.67yrsUS$410.00k0.00010% $1.3m
Jacobus Bekker
Non-Executive Chairman5.17yrsUS$575.00k1.09% $13.7b
Jacobus D. Stofberg
Non-Executive Director6.67yrsUS$273.00k0.11% $1.3b
Hendrik du Toit
Lead Independent Director0.17yrno datano data
Stephan Joseph Pacak
Non-Executive Director5.42yrsUS$284.00k0.12% $1.5b
Benedict van der Ross
Independent Non-Executive Director21.33yrsUS$303.00k0.00079% $9.9m
Rachel Catharina Jafta
Independent Non-Executive Director16.67yrsUS$475.00kno data
Donald Eriksson
Independent Non-Executive Director6.67yrsUS$482.00kno data

6.4yrs

Average Tenure

61yo

Average Age

Experienced Board: NPN's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Naspers Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Naspers Limited
  • Ticker: NPN
  • Exchange: JSE
  • Founded: 1915
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: R1.254t
  • Shares outstanding: 429.06m
  • Website: https://www.naspers.com

Number of Employees


Location

  • Naspers Limited
  • 40 Heerengracht
  • Cape Town
  • Western Cape
  • 8001
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NPSNLSE (London Stock Exchange)SPON ADR EACH REP 0.2 ORD SHS(POST SPLT)GBUSDNo data
NAPR.FOTCPK (Pink Sheets LLC)YesClass N Ordinary SharesUSUSDNov 1995
NPNJSE (The Johannesburg Securities Exchange)YesClass N Ordinary SharesZAZARNov 1995
NNWDB (Deutsche Boerse AG)YesClass N Ordinary SharesDEEURNov 1995
NPSN.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDDec 2002
NPSNLSE (London Stock Exchange)SPONSORED ADRGBUSDDec 2002
NNWNBST (Boerse-Stuttgart)SPONSORED ADRDEEURDec 2002
NNWNDB (Deutsche Boerse AG)SPONSORED ADRDEEURDec 2002

Biography

Naspers Limited operates in consumer Internet industry worldwide. The company builds various companies that empower people and enrich communities. It operates various Internet platforms to provide various services and products, including e-commerce, communication, social networks, entertainment, and mobile value-added services; and social platforms. The company also prints, publishes, and distributes newspapers, magazines, and books. Naspers Limited was founded in 1915 and is headquartered in Cape Town, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 20:09
End of Day Share Price2020/06/05 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.