Taking everything into account, NU scores 5 out of 10 in our fundamental rating. NU was compared to 383 industry peers in the Banks industry. There are concerns on the financial health of NU while its profitability can be described as average. NU is not overvalued while it is showing excellent growth. This is an interesting combination.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
NU had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

NU's Return On Assets of 3.70% is amongst the best of the industry. NU outperforms 100.00% of its industry peers.
NU has a Return On Equity of 23.97%. This is amongst the best in the industry. NU outperforms 99.74% of its industry peers.
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

With a Profit Margin value of 17.97%, NU is not doing good in the industry: 70.76% of the companies in the same industry are doing better.
NU has a better Operating Margin (25.30%) than 98.69% of its industry peers.
NU has a Gross Margin of 42.94%. This is amongst the best in 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	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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
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 0.63. This is a bad value and indicates that NU is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.63, NU belongs to the best 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.
With a Debt to FCF ratio value of 11.80, NU is not doing good in the industry: 79.90% of the companies in the same industry are doing better.
A Debt/Equity ratio of 3.92 is on the high side and indicates that NU has dependencies on debt financing.
With a Debt to Equity ratio value of 3.92, NU is not doing good in the industry: 94.52% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	3.92
Debt/FCF	11.8
Altman-Z	0.63

ROIC/WACC0.33

WACC13.88%

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's Current ratio of 0.18 is amongst the best of 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.
The Quick ratio of NU (0.18) is better than 100.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.18
Quick Ratio	0.18

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 34.15% over the past year.
Looking at the last year, NU shows a very strong growth in Revenue. The Revenue has grown by 28.77%.
The Revenue has been growing by 79.85% on average over the past years. This is a very strong growth!

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.
Based on estimates for the next years, NU will show a very strong growth in Revenue. The Revenue will grow by 23.24% on average per year.

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

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 34.11 indicates a quite expensive valuation of NU.
86.42% of the companies in the same industry are cheaper than NU, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.39. NU is valued slightly more expensive when compared to this.
NU is valuated rather expensively with a Price/Forward Earnings ratio of 20.38.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NU indicates a slightly more expensive valuation: NU is more expensive than 78.07% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.72. NU is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	34.11
Fwd PE	20.38

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.
Based on the Price/Free Cash Flow ratio, NU is valued a bit more expensive than the industry average as 75.72% of the companies are valued more cheaply.

		Industry Rank	Sector Rank
P/FCF	24.8
EV/EBITDA	23.35

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.
NU has a very decent profitability rating, which 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.