NU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 383 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!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

NU has a better Return On Assets (3.70%) than 100.00% of its industry peers.
With an excellent Return On Equity value of 23.97%, NU belongs to the best of the industry, outperforming 99.74% of the companies in the same industry.
NU has a better Return On Invested Capital (4.61%) than 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 70.76% of its industry peers.
NU has a Operating Margin of 25.30%. This is amongst the best in the industry. NU outperforms 98.69% of its industry peers.
NU has a better Gross Margin (42.94%) than 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	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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NU is destroying value.
Compared to 1 year ago, NU has more shares outstanding
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 0.60. This is a bad value and indicates that NU is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NU (0.60) is better than 100.00% of its industry peers.
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 79.90% of its industry peers.
A Debt/Equity ratio of 3.92 is on the high side and indicates that NU has dependencies on debt financing.
NU has a Debt to Equity ratio of 3.92. This is amonst the worse of the industry: NU underperforms 94.52% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	3.92
Debt/FCF	11.8
Altman-Z	0.6

ROIC/WACC0.33

WACC13.78%

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.
Looking at the Current 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.
A Quick Ratio of 0.18 indicates that NU may have some problems paying its short term obligations.
With an excellent Quick ratio value of 0.18, NU belongs to the best 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

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 34.15% over the past year.
NU shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.77%.
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)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 41.19% yearly.
The Revenue is expected to grow by 23.24% on average over the next years. This is a very strong growth

EPS Next Y42.16%

EPS Next 2Y43.04%

EPS Next 3Y41.19%

EPS Next 5YN/A

Revenue Next Year17.6%

Revenue Next 2Y24.99%

Revenue Next 3Y23.24%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 33.05, NU can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NU is valued expensively inside the industry as 85.90% of the companies are valued cheaper.
NU's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.25.
A Price/Forward Earnings ratio of 19.75 indicates a rather expensive valuation of NU.
NU's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NU is more expensive than 77.55% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, NU is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	33.05
Fwd PE	19.75

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NU is valued cheaply inside the industry as 98.69% of the companies are valued more expensively.
NU's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. NU is more expensive than 75.46% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	24.03
EV/EBITDA	22.39

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 41.19% in the coming years.