NU HOLDINGS LTD/CAYMAN ISL-A (NU) Stock Fundamental Analysis
USA - NYSE:NU - KYG6683N1034 - Common Stock
15.89 USD
-0.02 (-0.13%)
15.89 USD
0 (0%)
Overall NU gets a fundamental rating of 5 out of 10. We evaluated NU against 392 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 not priced too expensively while it is growing strongly. 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.
The reported net income has been mixed in the past 5 years: NU reported negative net income in multiple years.
Of the past 5 years NU 4 years had a positive operating cash flow.
1.2 Ratios
NU has a better Return On Assets (3.67%) than 99.74% of its industry peers.
Looking at the Return On Equity, with a value of 24.02%, NU belongs to the top of the industry, outperforming 99.74% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.41%, NU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| 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
NU's Profit Margin of 17.90% is on the low side compared to the rest of the industry. NU is outperformed by 67.86% of its industry peers.
NU's Operating Margin of 24.65% is amongst the best of the industry. NU outperforms 98.72% of its industry peers.
NU's Gross Margin of 43.42% is amongst the best of the industry. NU outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of NU has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NU is destroying value.
NU has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NU has more shares outstanding
NU has a worse debt/assets ratio than last year.
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.
The Altman-Z score of NU (0.54) is better than 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.
Looking at the Debt to FCF ratio, with a value of 10.94, NU is doing worse than 77.81% of the companies in the same industry.
NU has a Debt/Equity ratio of 4.05. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.05, NU is not doing good in the industry: 94.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.94 | ||
| Altman-Z | 0.54 |
ROIC/WACC0.31
WACC14.28%
2.3 Liquidity
A Current Ratio of 0.18 indicates that NU may have some problems paying its short term obligations.
NU has a Current ratio of 0.18. This is amongst the best in the industry. NU outperforms 100.00% of its industry peers.
NU has a Quick Ratio of 0.18. This is a bad value and indicates that NU is not financially healthy enough and could expect problems in meeting 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
The Earnings Per Share has grown by an impressive 38.89% over the past year.
The Revenue has grown by 26.88% in the past year. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 42.31% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 22.92% on average over the next years. This is a very strong growth
EPS Next Y34.53%
EPS Next 2Y39.78%
EPS Next 3Y42.31%
EPS Next 5YN/A
Revenue Next Year18.64%
Revenue Next 2Y22.42%
Revenue Next 3Y22.92%
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
With a Price/Earnings ratio of 31.78, NU can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NU is valued expensively inside the industry as 84.69% of the companies are valued cheaper.
The average S&P500 Price/Earnings ratio is at 27.20. NU is around the same levels.
Based on the Price/Forward Earnings ratio of 18.07, the valuation of NU can be described as rather expensive.
Based on the Price/Forward Earnings ratio, NU is valued a bit more expensive than 77.04% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.71. NU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.78 | ||
| Fwd PE | 18.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NU indicates a rather cheap valuation: NU is cheaper than 98.72% of the companies listed in the same industry.
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 69.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.94 | ||
| EV/EBITDA | 21.75 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
NU's earnings are expected to grow with 42.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y39.78%
EPS Next 3Y42.31%
5. Dividend
5.1 Amount
No dividends for NU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.89
-0.02 (-0.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners78.96%
Inst Owner Change-3.24%
Ins Owners0.29%
Ins Owner Change0%
Market Cap76.57B
Analysts80
Price Target16.5 (3.84%)
Short Float %3.35%
Short Ratio2.11
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)14.44%
PT rev (3m)16.26%
EPS NQ rev (1m)5.26%
EPS NQ rev (3m)10.51%
EPS NY rev (1m)2.42%
EPS NY rev (3m)3.46%
Revenue NQ rev (1m)-4.48%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)-2.44%
Revenue NY rev (3m)-5.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.78 | ||
| Fwd PE | 18.07 | ||
| P/S | 5.96 | ||
| P/FCF | 20.94 | ||
| P/OCF | 19.43 | ||
| P/B | 8 | ||
| P/tB | 8.85 | ||
| EV/EBITDA | 21.75 |
EPS(TTM)0.5
EY3.15%
EPS(NY)0.88
Fwd EY5.53%
FCF(TTM)0.76
FCFY4.78%
OCF(TTM)0.82
OCFY5.15%
SpS2.67
BVpS1.99
TBVpS1.8
PEG (NY)0.92
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 | 0.54 |
F-Score5
WACC14.28%
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 Y34.53%
EPS Next 2Y39.78%
EPS Next 3Y42.31%
EPS Next 5YN/A
Revenue 1Y (TTM)26.88%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%28.78%
Revenue Next Year18.64%
Revenue Next 2Y22.42%
Revenue Next 3Y22.92%
Revenue Next 5YN/A
EBIT growth 1Y39.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year140.14%
EBIT Next 3Y57.64%
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%