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NU HOLDINGS LTD/CAYMAN ISL-A (NU) Stock Fundamental Analysis

NYSE:NU - New York Stock Exchange, Inc. - KYG6683N1034 - Common Stock - Currency: USD

10.82  -2.52 (-18.89%)

After market: 10.95 +0.13 (+1.2%)

Fundamental Rating

4

NU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 404 industry peers in the Banks industry. NU has a medium profitability rating, but doesn't score so well on its financial health evaluation. NU has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year NU was profitable.
In the past year NU had a positive cash flow from operations.
NU had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: NU reported negative operating cash flow in multiple years.
NU Yearly Net Income VS EBIT VS OCF VS FCFNU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 1B -1B -2B

1.2 Ratios

NU's Return On Assets of 3.66% is amongst the best of the industry. NU outperforms 99.00% of its industry peers.
With an excellent Return On Equity value of 23.29%, NU belongs to the best of the industry, outperforming 98.74% of the companies in the same industry.
NU's Return On Invested Capital of 4.48% is amongst the best of the industry. NU outperforms 100.00% of its industry peers.
Industry RankSector Rank
ROA 3.66%
ROE 23.29%
ROIC 4.48%
ROA(3y)0.11%
ROA(5y)-0.55%
ROE(3y)1.64%
ROE(5y)-9.87%
ROIC(3y)N/A
ROIC(5y)N/A
NU Yearly ROA, ROE, ROICNU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 10 -10 -20 -30

1.3 Margins

The Profit Margin of NU (16.28%) is worse than 72.86% of its industry peers.
NU has a Operating Margin of 23.67%. This is amongst the best in the industry. NU outperforms 99.00% of its industry peers.
With an excellent Gross Margin value of 73.08%, NU belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of NU has remained more or less at the same level.
Industry RankSector Rank
OM 23.67%
PM (TTM) 16.28%
GM 73.08%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.22%
GM growth 5Y-0.09%
NU Yearly Profit, Operating, Gross MarginsNU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NU is destroying value.
NU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
NU Yearly Shares OutstandingNU Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B
NU Yearly Total Debt VS Total AssetsNU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

2.2 Solvency

NU has an Altman-Z score of 0.61. This is a bad value and indicates that NU is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.61, NU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NU has a debt to FCF ratio of 8.37. This is a slightly negative value and a sign of low solvency as NU would need 8.37 years to pay back of all of its debts.
NU's Debt to FCF ratio of 8.37 is on the low side compared to the rest of the industry. NU is outperformed by 70.10% of its industry peers.
A Debt/Equity ratio of 3.94 is on the high side and indicates that NU has dependencies on debt financing.
NU has a Debt to Equity ratio of 3.94. This is amonst the worse of the industry: NU underperforms 97.74% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.94
Debt/FCF 8.37
Altman-Z 0.61
ROIC/WACC0.38
WACC11.75%
NU Yearly LT Debt VS Equity VS FCFNU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 0 2B -2B 4B 6B

2.3 Liquidity

NU has a Current Ratio of 0.16. This is a bad value and indicates that NU is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of NU (0.16) is better than 100.00% of its industry peers.
A Quick Ratio of 0.16 indicates that NU may have some problems paying its short term obligations.
NU's Quick ratio of 0.16 is amongst the best of the industry. NU outperforms 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.16
Quick Ratio 0.16
NU Yearly Current Assets VS Current LiabilitesNU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 10B 20B 30B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 84.43% over the past year.
EPS 1Y (TTM)84.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%24.3%

3.2 Future

The Earnings Per Share is expected to grow by 38.98% 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 24.16% on average per year.
EPS Next Y37.82%
EPS Next 2Y38.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year32.41%
Revenue Next 2Y24.16%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

NU Yearly Revenue VS EstimatesNU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 5B 10B 15B
NU Yearly EPS VS EstimatesNU Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.2 0.4 0.6 0.8

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24.04 indicates a rather expensive valuation of NU.
NU's Price/Earnings ratio is rather expensive when compared to the industry. NU is more expensive than 85.93% of the companies in the same industry.
When comparing the Price/Earnings ratio of NU to the average of the S&P500 Index (29.63), we can say NU is valued inline with the index average.
With a Price/Forward Earnings ratio of 17.45, NU is valued on the expensive side.
Based on the Price/Forward Earnings ratio, NU is valued a bit more expensive than 76.88% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NU to the average of the S&P500 Index (22.68), we can say NU is valued slightly cheaper.
Industry RankSector Rank
PE 24.04
Fwd PE 17.45
NU Price Earnings VS Forward Price EarningsNU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NU is valued cheaper than 99.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NU is valued a bit more expensive than 61.56% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.22
EV/EBITDA 22.55
NU Per share dataNU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0.5 1 1.5 2

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.
NU's earnings are expected to grow with 38.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y38.98%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for NU!.
Industry RankSector Rank
Dividend Yield N/A

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NU HOLDINGS LTD/CAYMAN ISL-A

NYSE:NU (2/21/2025, 8:04:01 PM)

After market: 10.95 +0.13 (+1.2%)

10.82

-2.52 (-18.89%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-12 2025-05-12/amc
Inst Owners76.35%
Inst Owner Change-4.02%
Ins Owners0.11%
Ins Owner Change0%
Market Cap51.57B
Analysts74.62
Price Target14.95 (38.17%)
Short Float %3.35%
Short Ratio3.01
Dividend
Industry RankSector 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)2
Avg EPS beat(2)14.12%
Min EPS beat(2)6.03%
Max EPS beat(2)22.21%
EPS beat(4)3
Avg EPS beat(4)5.84%
Min EPS beat(4)-7.69%
Max EPS beat(4)22.21%
EPS beat(8)7
Avg EPS beat(8)29.82%
EPS beat(12)11
Avg EPS beat(12)54.32%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.55%
Min Revenue beat(2)-5.23%
Max Revenue beat(2)0.14%
Revenue beat(4)3
Avg Revenue beat(4)1.6%
Min Revenue beat(4)-5.23%
Max Revenue beat(4)6.54%
Revenue beat(8)6
Avg Revenue beat(8)1.21%
Revenue beat(12)10
Avg Revenue beat(12)9.64%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.76%
PT rev (3m)1.77%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-2.95%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)6.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.48%
Valuation
Industry RankSector Rank
PE 24.04
Fwd PE 17.45
P/S 4.72
P/FCF 14.22
P/OCF 13.8
P/B 6.75
P/tB 7.53
EV/EBITDA 22.55
EPS(TTM)0.45
EY4.16%
EPS(NY)0.62
Fwd EY5.73%
FCF(TTM)0.76
FCFY7.03%
OCF(TTM)0.78
OCFY7.24%
SpS2.29
BVpS1.6
TBVpS1.44
PEG (NY)0.64
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.66%
ROE 23.29%
ROCE 26.16%
ROIC 4.48%
ROICexc 5.16%
ROICexgc 5.33%
OM 23.67%
PM (TTM) 16.28%
GM 73.08%
FCFM 33.16%
ROA(3y)0.11%
ROA(5y)-0.55%
ROE(3y)1.64%
ROE(5y)-9.87%
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 3Y2.22%
GM growth 5Y-0.09%
F-Score8
Asset Turnover0.22
Health
Industry RankSector Rank
Debt/Equity 3.94
Debt/FCF 8.37
Debt/EBITDA 11.32
Cap/Depr 151.98%
Cap/Sales 1.01%
Interest Coverage 24.47
Cash Conversion 140.42%
Profit Quality 203.62%
Current Ratio 0.16
Quick Ratio 0.16
Altman-Z 0.61
F-Score8
WACC11.75%
ROIC/WACC0.38
Cap/Depr(3y)255.74%
Cap/Depr(5y)193.5%
Cap/Sales(3y)2.09%
Cap/Sales(5y)1.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)84.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y37.82%
EPS Next 2Y38.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%24.3%
Revenue Next Year32.41%
Revenue Next 2Y24.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y241.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year281.8%
EBIT Next 3Y93.79%
EBIT Next 5YN/A
FCF growth 1Y353.17%
FCF growth 3Y3.97%
FCF growth 5YN/A
OCF growth 1Y380.46%
OCF growth 3Y9.02%
OCF growth 5YN/A