NU HOLDINGS LTD/CAYMAN ISL-A (NU) Stock Fundamental Analysis
NYSE:NU - New York Stock Exchange, Inc. - KYG6683N1034 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NU. NU was compared to 396 industry peers in the Banks industry. There are concerns on the financial health of NU while its profitability can be described as average. NU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year NU was profitable.
NU had a positive operating cash flow in the past year.
In multiple years NU reported negative net income over the last 5 years.
NU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 3.97%, NU belongs to the best of the industry, outperforming 99.49% of the companies in the same industry.
NU has a better Return On Equity (24.98%) than 99.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.86%, NU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.97% | ||
| ROE | 24.98% | ||
| ROIC | 4.86% |
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
With a Profit Margin value of 17.88%, NU is not doing good in the industry: 69.37% of the companies in the same industry are doing better.
Looking at the Operating Margin, with a value of 25.05%, NU belongs to the top of the industry, outperforming 98.99% of the companies in the same industry.
NU has a Gross Margin of 44.82%. This is amongst the best in the industry. NU outperforms 100.00% of its industry peers.
NU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.05% | ||
| PM (TTM) | 17.88% | ||
| GM | 44.82% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NU is destroying value.
The number of shares outstanding for NU has been increased compared to 1 year ago.
The number of shares outstanding for NU has been increased compared to 5 years ago.
The debt/assets ratio for NU is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.54, we must say that NU is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.54, NU belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of NU is 8.83, which is on the high side as it means it would take NU, 8.83 years of fcf income to pay off all of its debts.
NU has a Debt to FCF ratio of 8.83. This is in the lower half of the industry: NU underperforms 78.73% of its industry peers.
A Debt/Equity ratio of 3.83 is on the high side and indicates that NU has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.83, NU is doing worse than 95.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.83 | ||
| Debt/FCF | 8.83 | ||
| Altman-Z | 0.54 |
ROIC/WACC0.36
WACC13.54%
2.3 Liquidity
A Current Ratio of 0.14 indicates that NU may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.14, NU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NU has a Quick Ratio of 0.14. This is a bad value and indicates that NU is not financially healthy enough and could expect problems in meeting its short term obligations.
NU has a Quick ratio of 0.14. This is amongst the best in the industry. NU outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
NU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.27%, which is quite impressive.
Looking at the last year, NU shows a very strong growth in Revenue. The Revenue has grown by 31.52%.
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)63.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)31.52%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%18.71%
3.2 Future
The Earnings Per Share is expected to grow by 39.83% on average over the next years. This is a very strong growth
Based on estimates for the next years, NU will show a very strong growth in Revenue. The Revenue will grow by 26.65% on average per year.
EPS Next Y31.58%
EPS Next 2Y36.95%
EPS Next 3Y39.83%
EPS Next 5YN/A
Revenue Next Year21.61%
Revenue Next 2Y23.9%
Revenue Next 3Y26.65%
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.33, the valuation of NU can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NU indicates a rather expensive valuation: NU more expensive than 84.81% of the companies listed in the same industry.
NU's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 16.11, which indicates a correct valuation of NU.
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 75.19% of the companies listed in the same industry.
NU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.33 | ||
| Fwd PE | 16.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NU is valued cheaper than 98.99% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NU is valued a bit more expensive than the industry average as 68.10% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.14 | ||
| EV/EBITDA | 20.07 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as NU's earnings are expected to grow with 39.83% in the coming years.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y36.95%
EPS Next 3Y39.83%
5. Dividend
5.1 Amount
No dividends for NU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.6
+0.11 (+0.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners79.05%
Inst Owner Change-2.15%
Ins Owners0.29%
Ins Owner Change0%
Market Cap65.53B
Analysts74.62
Price Target14.28 (5%)
Short Float %2.97%
Short Ratio1.73
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)0
Avg EPS beat(2)-4.54%
Min EPS beat(2)-6.52%
Max EPS beat(2)-2.56%
EPS beat(4)2
Avg EPS beat(4)4.79%
Min EPS beat(4)-6.52%
Max EPS beat(4)22.21%
EPS beat(8)5
Avg EPS beat(8)4.56%
EPS beat(12)9
Avg EPS beat(12)32.58%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-5.7%
Min Revenue beat(2)-11.83%
Max Revenue beat(2)0.42%
Revenue beat(4)2
Avg Revenue beat(4)-4.12%
Min Revenue beat(4)-11.83%
Max Revenue beat(4)0.42%
Revenue beat(8)6
Avg Revenue beat(8)0.04%
Revenue beat(12)9
Avg Revenue beat(12)2.07%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.41%
PT rev (3m)-0.36%
EPS NQ rev (1m)-4.98%
EPS NQ rev (3m)-1.68%
EPS NY rev (1m)1.19%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.24%
Revenue NY rev (1m)-1.6%
Revenue NY rev (3m)-3.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.33 | ||
| Fwd PE | 16.11 | ||
| P/S | 5.45 | ||
| P/FCF | 17.14 | ||
| P/OCF | 16.16 | ||
| P/B | 7.61 | ||
| P/tB | 8.45 | ||
| EV/EBITDA | 20.07 |
EPS(TTM)0.48
EY3.53%
EPS(NY)0.84
Fwd EY6.21%
FCF(TTM)0.79
FCFY5.84%
OCF(TTM)0.84
OCFY6.19%
SpS2.5
BVpS1.79
TBVpS1.61
PEG (NY)0.9
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.97% | ||
| ROE | 24.98% | ||
| ROCE | 28.38% | ||
| ROIC | 4.86% | ||
| ROICexc | 5.53% | ||
| ROICexgc | 5.68% | ||
| OM | 25.05% | ||
| PM (TTM) | 17.88% | ||
| GM | 44.82% | ||
| FCFM | 31.79% |
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-Score7
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.83 | ||
| Debt/FCF | 8.83 | ||
| Debt/EBITDA | 10.67 | ||
| Cap/Depr | 288.46% | ||
| Cap/Sales | 1.92% | ||
| Interest Coverage | 41.74 | ||
| Cash Conversion | 131.11% | ||
| Profit Quality | 177.83% | ||
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 0.54 |
F-Score7
WACC13.54%
ROIC/WACC0.36
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)63.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y31.58%
EPS Next 2Y36.95%
EPS Next 3Y39.83%
EPS Next 5YN/A
Revenue 1Y (TTM)31.52%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%18.71%
Revenue Next Year21.61%
Revenue Next 2Y23.9%
Revenue Next 3Y26.65%
Revenue Next 5YN/A
EBIT growth 1Y60.77%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year144.91%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y511.41%
FCF growth 3YN/A
FCF growth 5Y52.3%
OCF growth 1Y425.56%
OCF growth 3YN/A
OCF growth 5Y54.09%