NU HOLDINGS LTD/CAYMAN ISL-A (NU)
KYG6683N1034 - Common Stock
We assign a fundamental rating of 4 out of 10 to NU. NU was compared to 402 industry peers in the Banks industry. NU has a medium profitability rating, but doesn't score so well on its financial health evaluation. NU is valued quite expensive, but it does show an excellent growth.
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.
NU had negative earnings in 4 of the past 5 years.
NU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of NU (3.41%) is better than 99.25% of its industry peers.
NU has a better Return On Equity (22.10%) than 99.00% of its industry peers.
The Return On Invested Capital of NU (4.37%) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 22.1% | ||
| ROIC | 4.37% |
ROA(3y)0.11%
ROA(5y)-0.55%
ROE(3y)1.64%
ROE(5y)-9.87%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NU has a Profit Margin of 15.11%. This is in the lower half of the industry: NU underperforms 73.63% of its industry peers.
NU's Operating Margin of 22.47% is amongst the best of the industry. NU outperforms 99.00% of its industry peers.
NU has a Gross Margin of 73.17%. This is amongst the best in the industry. NU outperforms 99.75% of its industry peers.
In the last couple of years the Gross Margin of NU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.47% | ||
| PM (TTM) | 15.11% | ||
| GM | 73.17% |
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%
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 0.85, we must say that NU is in the distress zone and has some risk of bankruptcy.
NU has a better Altman-Z score (0.85) than 100.00% of its industry peers.
The Debt to FCF ratio of NU is 19.07, which is on the high side as it means it would take NU, 19.07 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NU (19.07) is worse than 82.09% of its industry peers.
A Debt/Equity ratio of 3.95 is on the high side and indicates that NU has dependencies on debt financing.
With a Debt to Equity ratio value of 3.95, NU is not doing good in the industry: 97.01% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | 19.07 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.36
WACC12.21%
2.3 Liquidity
A Current Ratio of 0.21 indicates that NU may have some problems paying its short term obligations.
NU's Current ratio of 0.21 is amongst the best of the industry. NU outperforms 98.76% of its industry peers.
NU has a Quick Ratio of 0.21. 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 Quick ratio (0.21) than 98.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
NU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 183.46%, which is quite impressive.
NU shows a strong growth in Revenue. In the last year, the Revenue has grown by 62.16%.
The Revenue has been growing by 90.63% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)183.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%122.22%
Revenue 1Y (TTM)62.16%
Revenue growth 3Y121.67%
Revenue growth 5Y90.63%
Sales Q2Q%52.45%
3.2 Future
Based on estimates for the next years, NU will show a very strong growth in Earnings Per Share. The EPS will grow by 57.62% on average per year.
The Revenue is expected to grow by 30.20% on average over the next years. This is a very strong growth
EPS Next Y78.93%
EPS Next 2Y62.65%
EPS Next 3Y57.62%
EPS Next 5YN/A
Revenue Next Year41.75%
Revenue Next 2Y34.87%
Revenue Next 3Y30.2%
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
NU is valuated quite expensively with a Price/Earnings ratio of 42.06.
89.30% of the companies in the same industry are cheaper than NU, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NU to the average of the S&P500 Index (30.57), we can say NU is valued slightly more expensively.
A Price/Forward Earnings ratio of 23.45 indicates a rather expensive valuation of NU.
Based on the Price/Forward Earnings ratio, NU is valued a bit more expensive than the industry average as 78.11% of the companies are valued more cheaply.
NU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.06 | ||
| Fwd PE | 23.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NU is valued cheaply inside the industry as 98.76% of the companies are valued more expensively.
NU's Price/Free Cash Flow ratio is rather expensive when compared to the industry. NU is more expensive than 84.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.83 | ||
| EV/EBITDA | 28.7 |
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 57.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y62.65%
EPS Next 3Y57.62%
5. Dividend
5.1 Amount
NU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NU HOLDINGS LTD/CAYMAN ISL-A
NYSE:NU (9/17/2024, 8:24:26 PM)
Premarket: 15.31 +0.17 (+1.12%)15.14
+0.25 (+1.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap72.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.06 | ||
| Fwd PE | 23.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 22.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.47% | ||
| PM (TTM) | 15.11% | ||
| GM | 73.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)183.46%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y78.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)62.16%
Revenue growth 3Y121.67%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y