Naspers Limited (NPN.JO) stock analysis

In our weekly check, Naspers Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 7.

About Naspers Limited

Naspers Limited is a Communication Services company (Internet Content & Information) based in South Africa, listed on JNB as NPN.JO.

What our checks show for NPN.JO

Red flags

• Net debt is 39.7x a year of EBITDA (debt/equity 0.77). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0.3x): interest is paid from cash or new debt.
• The net margin fell by 108 points over 5 years, to 45.8%: the company keeps less of each sale as profit.
• Operating cash flow is only 0.33x net profit: part of the reported profit does not arrive as cash.
• Analysts expect the net margin to shrink by 7.3 points from today's 45.8%.
• The stock has fallen as much as 63% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 0.4%.

Warning signs

• A small company (market value $309 million): usually riskier and followed by fewer analysts.
• The price swings a lot: 36.4% annual volatility. Expect large ups and downs.
• Recovering from its deepest fall took about 1.9 years.

Strengths

• The gross margin is 44.4% and has risen by 15.2 points: pricing power is holding.
• Revenue grew 17.9% a year over the last 3 years.
• Earnings per share grew 98.3% a year over the last 3 years.
• The company keeps 45.8% of its revenue as net profit.
• Free cash flow is 13.9% of revenue: cash for dividends, buybacks or growth.
• The dividend takes 11% of profit: there is a cushion.

Similar companies

META · SPOT · 1024.HK · ETERNAL.NS · DASH · 0700.HK

Questions

What grade does Naspers Limited (NPN.JO) have?

In our weekly check, Naspers Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of NPN.JO stock?

This week's biggest flags for Naspers Limited: High debt, Weak interest cover, Margins falling. In total 10 of 25 checks show a warning or a red flag.

What does Naspers Limited do?

Naspers Limited is a Communication Services company (Internet Content & Information) based in South Africa, listed on JNB as NPN.JO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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