NU HOLDINGS LTD/CAYMAN ISL-A (NU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NU - KYG6683N1034 - Common Stock
16.7 USD
-0.95 (-5.38%)
16.7099 USD
+0.01 (+0.06%)
NU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 387 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.
NU had a positive operating cash flow in the past year.
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
The Return On Assets of NU (3.70%) is better than 100.00% of its industry peers.
NU's Return On Equity of 23.97% is amongst the best of the industry. NU outperforms 99.74% of its industry peers.
NU has a Return On Invested Capital of 4.61%. This is amongst the best in the industry. NU outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.7% | ||
| ROE | 23.97% | ||
| ROIC | 4.61% |
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 has a worse Profit Margin (17.97%) than 70.54% of its industry peers.
NU has a Operating Margin of 25.30%. This is amongst the best in the industry. NU outperforms 98.71% of its industry peers.
NU has a better Gross Margin (42.94%) than 100.00% of its industry peers.
NU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.3% | ||
| PM (TTM) | 17.97% | ||
| GM | 42.94% |
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.
Compared to 1 year ago, NU has more shares outstanding
Compared to 5 years ago, NU has more shares outstanding
The debt/assets ratio for NU is higher compared to a year ago.
2.2 Solvency
NU has an Altman-Z score of 0.53. 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 0.53, NU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of NU is 11.80, which is on the high side as it means it would take NU, 11.80 years of fcf income to pay off all of its debts.
NU has a Debt to FCF ratio of 11.80. This is in the lower half of the industry: NU underperforms 79.84% of its industry peers.
NU has a Debt/Equity ratio of 3.92. This is a high value indicating a heavy dependency on external financing.
NU has a worse Debt to Equity ratio (3.92) than 95.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.92 | ||
| Debt/FCF | 11.8 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.32
WACC14.48%
2.3 Liquidity
NU has a Current 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.
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.
NU's Quick ratio of 0.18 is amongst the best of the industry. NU outperforms 100.00% of its industry peers.
| 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 34.15%, which is quite impressive.
The Revenue has grown by 28.77% in the past year. This is a very strong growth!
NU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 79.85% yearly.
EPS 1Y (TTM)34.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%41.67%
Revenue 1Y (TTM)28.77%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%41.78%
3.2 Future
NU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.81% yearly.
NU is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.94% yearly.
EPS Next Y44.53%
EPS Next 2Y44.21%
EPS Next 3Y41.81%
EPS Next 5YN/A
Revenue Next Year24%
Revenue Next 2Y24.23%
Revenue Next 3Y21.94%
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
A Price/Earnings ratio of 30.36 indicates a quite expensive valuation of NU.
84.75% of the companies in the same industry are cheaper than NU, based on the Price/Earnings ratio.
NU's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.49.
NU is valuated rather expensively with a Price/Forward Earnings ratio of 17.85.
NU's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NU is more expensive than 77.26% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NU to the average of the S&P500 Index (23.69), we can say NU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 17.85 |
4.2 Price Multiples
98.71% 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 73.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.07 | ||
| EV/EBITDA | 20.61 |
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 41.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y44.21%
EPS Next 3Y41.81%
5. Dividend
5.1 Amount
NU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.7
-0.95 (-5.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners79.45%
Inst Owner Change3.2%
Ins Owners0.31%
Ins Owner Change0%
Market Cap80.92B
Revenue(TTM)14.08B
Net Income(TTM)2.53B
Analysts80.83
Price Target19.37 (15.99%)
Short Float %2.79%
Short Ratio2.54
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)2
Avg EPS beat(2)3.89%
Min EPS beat(2)3.62%
Max EPS beat(2)4.16%
EPS beat(4)2
Avg EPS beat(4)-0.33%
Min EPS beat(4)-6.52%
Max EPS beat(4)4.16%
EPS beat(8)5
Avg EPS beat(8)2.75%
EPS beat(12)9
Avg EPS beat(12)19.77%
EPS beat(16)13
Avg EPS beat(16)40.65%
Revenue beat(2)1
Avg Revenue beat(2)0.4%
Min Revenue beat(2)-5.67%
Max Revenue beat(2)6.47%
Revenue beat(4)2
Avg Revenue beat(4)-2.65%
Min Revenue beat(4)-11.83%
Max Revenue beat(4)6.47%
Revenue beat(8)5
Avg Revenue beat(8)-0.52%
Revenue beat(12)8
Avg Revenue beat(12)-0.08%
Revenue beat(16)12
Avg Revenue beat(16)6.57%
PT rev (1m)15.73%
PT rev (3m)20.99%
EPS NQ rev (1m)12.92%
EPS NQ rev (3m)16.02%
EPS NY rev (1m)6.39%
EPS NY rev (3m)7.43%
Revenue NQ rev (1m)5.53%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)2.25%
Revenue NY rev (3m)6.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 17.85 | ||
| P/S | 5.75 | ||
| P/FCF | 22.07 | ||
| P/OCF | 20.03 | ||
| P/B | 7.67 | ||
| P/tB | 8.46 | ||
| EV/EBITDA | 20.61 |
EPS(TTM)0.55
EY3.29%
EPS(NY)0.94
Fwd EY5.6%
FCF(TTM)0.76
FCFY4.53%
OCF(TTM)0.83
OCFY4.99%
SpS2.91
BVpS2.18
TBVpS1.97
PEG (NY)0.68
PEG (5Y)N/A
Graham Number5.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.7% | ||
| ROE | 23.97% | ||
| ROCE | 27.35% | ||
| ROIC | 4.61% | ||
| ROICexc | 5.51% | ||
| ROICexgc | 5.69% | ||
| OM | 25.3% | ||
| PM (TTM) | 17.97% | ||
| GM | 42.94% | ||
| FCFM | 26.04% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score6
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.92 | ||
| Debt/FCF | 11.8 | ||
| Debt/EBITDA | 11.33 | ||
| Cap/Depr | 410.64% | ||
| Cap/Sales | 2.66% | ||
| Interest Coverage | 42.97 | ||
| Cash Conversion | 110.6% | ||
| Profit Quality | 144.94% | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 0.53 |
F-Score6
WACC14.48%
ROIC/WACC0.32
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)34.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%41.67%
EPS Next Y44.53%
EPS Next 2Y44.21%
EPS Next 3Y41.81%
EPS Next 5YN/A
Revenue 1Y (TTM)28.77%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%41.78%
Revenue Next Year24%
Revenue Next 2Y24.23%
Revenue Next 3Y21.94%
Revenue Next 5YN/A
EBIT growth 1Y37.63%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year140.14%
EBIT Next 3Y40.94%
EBIT Next 5YN/A
FCF growth 1Y364.53%
FCF growth 3YN/A
FCF growth 5Y52.3%
OCF growth 1Y433.31%
OCF growth 3YN/A
OCF growth 5Y54.09%
NU HOLDINGS LTD/CAYMAN ISL-A / NU FAQ
What is the fundamental rating for NU stock?
ChartMill assigns a fundamental rating of 5 / 10 to NU.
What is the valuation status for NU stock?
ChartMill assigns a valuation rating of 4 / 10 to NU HOLDINGS LTD/CAYMAN ISL-A (NU). This can be considered as Fairly Valued.
Can you provide the profitability details for NU HOLDINGS LTD/CAYMAN ISL-A?
NU HOLDINGS LTD/CAYMAN ISL-A (NU) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for NU stock?
The Price/Earnings (PE) ratio for NU HOLDINGS LTD/CAYMAN ISL-A (NU) is 30.36 and the Price/Book (PB) ratio is 7.67.
What is the financial health of NU HOLDINGS LTD/CAYMAN ISL-A (NU) stock?
The financial health rating of NU HOLDINGS LTD/CAYMAN ISL-A (NU) is 2 / 10.