NU HOLDINGS LTD/CAYMAN ISL-A (NU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NU - KYG6683N1034 - Common Stock
16.88 USD
+0.22 (+1.32%)
16.9009 USD
+0.02 (+0.12%)
Taking everything into account, NU scores 5 out of 10 in our fundamental rating. NU was compared to 388 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!
1. Profitability
1.1 Basic Checks
In the past year NU was profitable.
In the past year NU had a positive cash flow from operations.
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 Return On Assets of 3.70%. This is amongst the best in 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.
With an excellent Return On Invested Capital value of 4.61%, NU belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| 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 Profit Margin of 17.97%. This is in the lower half of the industry: NU underperforms 70.62% of its industry peers.
With an excellent Operating Margin value of 25.30%, NU belongs to the best of the industry, outperforming 98.71% of the companies in the same industry.
The Gross Margin of NU (42.94%) is better 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NU is destroying value.
The number of shares outstanding for NU has been increased compared to 1 year ago.
NU has more shares outstanding than it did 5 years ago.
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.
NU has a debt to FCF ratio of 11.80. This is a negative value and a sign of low solvency as NU would need 11.80 years to pay back of all of its debts.
NU's Debt to FCF ratio of 11.80 is on the low side compared to the rest of the industry. NU is outperformed by 80.15% 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 worse Debt to Equity ratio (3.92) than 95.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.92 | ||
| Debt/FCF | 11.8 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.32
WACC14.41%
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.
NU has a better Quick ratio (0.18) than 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.
Looking at the last year, NU shows a very strong growth in Revenue. The Revenue has grown by 28.77%.
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
The Earnings Per Share is expected to grow by 41.49% on average over the next years. This is a very strong growth
NU is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.78% yearly.
EPS Next Y42.16%
EPS Next 2Y43.2%
EPS Next 3Y41.49%
EPS Next 5YN/A
Revenue Next Year12.58%
Revenue Next 2Y24.78%
Revenue Next 3Y22.78%
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
Based on the Price/Earnings ratio of 30.69, the valuation of NU can be described as expensive.
Based on the Price/Earnings ratio, NU is valued more expensive than 84.79% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.77, NU is valued at the same level.
A Price/Forward Earnings ratio of 18.29 indicates a rather expensive valuation of NU.
77.32% of the companies in the same industry are cheaper than NU, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.35. NU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.69 | ||
| Fwd PE | 18.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NU is valued cheaply inside the industry as 98.71% of the companies are valued more expensively.
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 74.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.31 | ||
| EV/EBITDA | 20.56 |
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 41.49% in the coming years.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y43.2%
EPS Next 3Y41.49%
5. Dividend
5.1 Amount
No dividends for NU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
16.88
+0.22 (+1.32%)
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 Cap81.79B
Revenue(TTM)14.08B
Net Income(TTM)2.53B
Analysts80.83
Price Target19.37 (14.75%)
Short Float %2.88%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)5.95%
PT rev (3m)17.35%
EPS NQ rev (1m)-4.11%
EPS NQ rev (3m)15.22%
EPS NY rev (1m)4.65%
EPS NY rev (3m)4.92%
Revenue NQ rev (1m)-10.7%
Revenue NQ rev (3m)-5.14%
Revenue NY rev (1m)-7.16%
Revenue NY rev (3m)-5.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.69 | ||
| Fwd PE | 18.29 | ||
| P/S | 5.81 | ||
| P/FCF | 22.31 | ||
| P/OCF | 20.25 | ||
| P/B | 7.75 | ||
| P/tB | 8.55 | ||
| EV/EBITDA | 20.56 |
EPS(TTM)0.55
EY3.26%
EPS(NY)0.92
Fwd EY5.47%
FCF(TTM)0.76
FCFY4.48%
OCF(TTM)0.83
OCFY4.94%
SpS2.91
BVpS2.18
TBVpS1.97
PEG (NY)0.73
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
WACC14.41%
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 Y42.16%
EPS Next 2Y43.2%
EPS Next 3Y41.49%
EPS Next 5YN/A
Revenue 1Y (TTM)28.77%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%41.78%
Revenue Next Year12.58%
Revenue Next 2Y24.78%
Revenue Next 3Y22.78%
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 30.69 and the Price/Book (PB) ratio is 7.75.
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.