NU HOLDINGS LTD/CAYMAN ISL-A (NU) Stock Fundamental Analysis
USA - NYSE:NU - KYG6683N1034 - Common Stock
15 USD
+0.27 (+1.83%)
15.01 USD
+0.01 (+0.07%)
Taking everything into account, NU scores 5 out of 10 in our fundamental rating. NU was compared to 391 industry peers in the Banks industry. While NU is still in line with the averages on profitability rating, there are concerns on its financial health. NU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
NU had positive earnings in the past year.
In the past year NU had a positive cash flow from operations.
In multiple years NU reported negative net income over the last 5 years.
Of the past 5 years NU 4 years had a positive operating cash flow.
1.2 Ratios
NU's Return On Assets of 3.67% is amongst the best of the industry. NU outperforms 100.00% of its industry peers.
NU has a better Return On Equity (24.02%) than 99.74% of its industry peers.
NU has a Return On Invested Capital of 4.41%. This is amongst the best in the industry. NU outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 24.02% | ||
| ROIC | 4.41% |
ROA(3y)1.7%
ROA(5y)0.52%
ROE(3y)11.47%
ROE(5y)-1.69%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 17.90%, NU is doing worse than 68.03% of the companies in the same industry.
The Operating Margin of NU (24.65%) is better than 98.72% of its industry peers.
The Gross Margin of NU (43.42%) is better than 100.00% of its industry peers.
NU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.65% | ||
| PM (TTM) | 17.9% | ||
| GM | 43.42% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.85%
GM growth 5Y2.4%
2. Health
2.1 Basic Checks
NU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NU has more shares outstanding than it did 1 year ago.
NU has more shares outstanding than it did 5 years ago.
NU has a worse debt/assets ratio than last year.
2.2 Solvency
NU has an Altman-Z score of 0.48. This is a bad value and indicates that NU is not financially healthy and even has some risk of bankruptcy.
NU has a Altman-Z score of 0.48. This is amongst the best in the industry. NU outperforms 100.00% of its industry peers.
The Debt to FCF ratio of NU is 10.94, which is on the high side as it means it would take NU, 10.94 years of fcf income to pay off all of its debts.
NU has a worse Debt to FCF ratio (10.94) than 79.28% of its industry peers.
NU has a Debt/Equity ratio of 4.05. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NU (4.05) is worse than 95.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.94 | ||
| Altman-Z | 0.48 |
ROIC/WACC0.31
WACC14.06%
2.3 Liquidity
A Current Ratio of 0.18 indicates that NU may have some problems paying its short term obligations.
NU has a better Current ratio (0.18) than 100.00% of its industry peers.
A Quick Ratio of 0.18 indicates that NU may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.18, NU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
NU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.89%, which is quite impressive.
Looking at the last year, NU shows a very strong growth in Revenue. The Revenue has grown by 26.88%.
Measured over the past years, NU shows a very strong growth in Revenue. The Revenue has been growing by 79.85% on average per year.
EPS 1Y (TTM)38.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.67%
Revenue 1Y (TTM)26.88%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%28.78%
3.2 Future
NU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.32% yearly.
Based on estimates for the next years, NU will show a very strong growth in Revenue. The Revenue will grow by 22.88% on average per year.
EPS Next Y35.5%
EPS Next 2Y38.95%
EPS Next 3Y38.32%
EPS Next 5YN/A
Revenue Next Year21.19%
Revenue Next 2Y22.4%
Revenue Next 3Y22.88%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.00, the valuation of NU can be described as expensive.
84.91% of the companies in the same industry are cheaper than NU, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NU to the average of the S&P500 Index (27.40), we can say NU is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 17.27, the valuation of NU can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NU indicates a slightly more expensive valuation: NU is more expensive than 77.49% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NU to the average of the S&P500 Index (22.94), we can say NU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 17.27 |
4.2 Price Multiples
98.72% of the companies in the same industry are more expensive than NU, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NU indicates a slightly more expensive valuation: NU is more expensive than 70.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.76 | ||
| EV/EBITDA | 20.03 |
4.3 Compensation for Growth
NU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of NU may justify a higher PE ratio.
NU's earnings are expected to grow with 38.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y38.95%
EPS Next 3Y38.32%
5. Dividend
5.1 Amount
No dividends for NU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15
+0.27 (+1.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners79.06%
Inst Owner Change0.4%
Ins Owners0.29%
Ins Owner Change0%
Market Cap72.28B
Analysts80.83
Price Target16.5 (10%)
Short Float %3.26%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.18%
Min EPS beat(2)-6.52%
Max EPS beat(2)4.16%
EPS beat(4)2
Avg EPS beat(4)0.28%
Min EPS beat(4)-6.52%
Max EPS beat(4)6.03%
EPS beat(8)5
Avg EPS beat(8)3.02%
EPS beat(12)9
Avg EPS beat(12)24.29%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-5.67%
Max Revenue beat(2)0.42%
Revenue beat(4)2
Avg Revenue beat(4)-4.23%
Min Revenue beat(4)-11.83%
Max Revenue beat(4)0.42%
Revenue beat(8)5
Avg Revenue beat(8)-1.19%
Revenue beat(12)8
Avg Revenue beat(12)-0.39%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.1%
PT rev (3m)15.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.63%
EPS NY rev (1m)0.72%
EPS NY rev (3m)2.98%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-4.13%
Revenue NY rev (1m)2.15%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 17.27 | ||
| P/S | 5.63 | ||
| P/FCF | 19.76 | ||
| P/OCF | 18.34 | ||
| P/B | 7.55 | ||
| P/tB | 8.36 | ||
| EV/EBITDA | 20.03 |
EPS(TTM)0.5
EY3.33%
EPS(NY)0.87
Fwd EY5.79%
FCF(TTM)0.76
FCFY5.06%
OCF(TTM)0.82
OCFY5.45%
SpS2.67
BVpS1.99
TBVpS1.8
PEG (NY)0.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 24.02% | ||
| ROCE | 27.16% | ||
| ROIC | 4.41% | ||
| ROICexc | 5.28% | ||
| ROICexgc | 5.43% | ||
| OM | 24.65% | ||
| PM (TTM) | 17.9% | ||
| GM | 43.42% | ||
| FCFM | 28.46% |
ROA(3y)1.7%
ROA(5y)0.52%
ROE(3y)11.47%
ROE(5y)-1.69%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.85%
GM growth 5Y2.4%
F-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.94 | ||
| Debt/EBITDA | 11.92 | ||
| Cap/Depr | 335.54% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 51.91 | ||
| Cash Conversion | 121.18% | ||
| Profit Quality | 159% | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 0.48 |
F-Score5
WACC14.06%
ROIC/WACC0.31
Cap/Depr(3y)276.52%
Cap/Depr(5y)220.29%
Cap/Sales(3y)2.04%
Cap/Sales(5y)1.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)38.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.67%
EPS Next Y35.5%
EPS Next 2Y38.95%
EPS Next 3Y38.32%
EPS Next 5YN/A
Revenue 1Y (TTM)26.88%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%28.78%
Revenue Next Year21.19%
Revenue Next 2Y22.4%
Revenue Next 3Y22.88%
Revenue Next 5YN/A
EBIT growth 1Y39.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year140.14%
EBIT Next 3Y40.94%
EBIT Next 5YN/A
FCF growth 1Y97.99%
FCF growth 3YN/A
FCF growth 5Y52.3%
OCF growth 1Y96.38%
OCF growth 3YN/A
OCF growth 5Y54.09%