NU HOLDINGS LTD/CAYMAN ISL-A (NU) Stock Fundamental Analysis
USA - NYSE:NU - KYG6683N1034 - Common Stock
16.3 USD
+0.13 (+0.8%)
16.33 USD
+0.03 (+0.18%)
We assign a fundamental rating of 5 out of 10 to NU. NU was compared to 392 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 growing strongly while it is still valued neutral. This is a good combination!
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.
In multiple years NU reported negative net income over the last 5 years.
Of the past 5 years NU 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NU (3.67%) is better than 100.00% of its industry peers.
The Return On Equity of NU (24.02%) is better than 99.74% of its industry peers.
NU's Return On Invested Capital of 4.41% is amongst the best of the industry. NU outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 24.02% | ||
| ROIC | 4.41% |
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 17.90%. This is in the lower half of the industry: NU underperforms 68.11% of its industry peers.
Looking at the Operating Margin, with a value of 24.65%, NU belongs to the top of the industry, outperforming 98.72% of the companies in the same industry.
With an excellent Gross Margin value of 43.42%, NU belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of NU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.65% | ||
| PM (TTM) | 17.9% | ||
| GM | 43.42% |
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.
The number of shares outstanding for NU has been increased compared to 5 years ago.
NU has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.56, we must say that NU is in the distress zone and has some risk of bankruptcy.
NU has a Altman-Z score of 0.56. This is amongst the best in the industry. NU outperforms 100.00% of its industry peers.
The Debt to FCF ratio of NU is 10.94, which is on the high side as it means it would take NU, 10.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NU (10.94) is worse than 78.06% of its industry peers.
NU has a Debt/Equity ratio of 4.05. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.05, NU is doing worse than 95.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.94 | ||
| Altman-Z | 0.56 |
ROIC/WACC0.31
WACC14.37%
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 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.89% over the past year.
The Revenue has grown by 26.88% 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)38.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.67%
Revenue 1Y (TTM)26.88%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%28.78%
3.2 Future
The Earnings Per Share is expected to grow by 38.32% 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 22.92% yearly.
EPS Next Y35.5%
EPS Next 2Y38.95%
EPS Next 3Y38.32%
EPS Next 5YN/A
Revenue Next Year18.64%
Revenue Next 2Y22.42%
Revenue Next 3Y22.92%
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
With a Price/Earnings ratio of 32.60, NU can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of NU indicates a rather expensive valuation: NU more expensive than 84.95% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NU to the average of the S&P500 Index (27.41), we can say NU is valued inline with the index average.
The Price/Forward Earnings ratio is 18.76, which indicates a rather expensive current valuation of NU.
Based on the Price/Forward Earnings ratio, NU is valued a bit more expensive than the industry average as 77.81% 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 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.6 | ||
| Fwd PE | 18.76 |
4.2 Price Multiples
98.72% of the companies in the same industry are more expensive than NU, based on the Enterprise Value to EBITDA ratio.
NU's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. NU is more expensive than 70.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.48 | ||
| EV/EBITDA | 22.35 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
NU's earnings are expected to grow with 38.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y38.95%
EPS Next 3Y38.32%
5. Dividend
5.1 Amount
No dividends for NU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.3
+0.13 (+0.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners79.06%
Inst Owner Change-3.24%
Ins Owners0.29%
Ins Owner Change0%
Market Cap78.54B
Analysts80
Price Target16.5 (1.23%)
Short Float %3.35%
Short Ratio2.11
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)1
Avg EPS beat(2)-1.18%
Min EPS beat(2)-6.52%
Max EPS beat(2)4.16%
EPS beat(4)2
Avg EPS beat(4)0.28%
Min EPS beat(4)-6.52%
Max EPS beat(4)6.03%
EPS beat(8)5
Avg EPS beat(8)3.02%
EPS beat(12)9
Avg EPS beat(12)24.29%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-5.67%
Max Revenue beat(2)0.42%
Revenue beat(4)2
Avg Revenue beat(4)-4.23%
Min Revenue beat(4)-11.83%
Max Revenue beat(4)0.42%
Revenue beat(8)5
Avg Revenue beat(8)-1.19%
Revenue beat(12)8
Avg Revenue beat(12)-0.39%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)14.44%
PT rev (3m)16.26%
EPS NQ rev (1m)4.23%
EPS NQ rev (3m)7.14%
EPS NY rev (1m)0.72%
EPS NY rev (3m)4.21%
Revenue NQ rev (1m)-3.17%
Revenue NQ rev (3m)-4.48%
Revenue NY rev (1m)1.74%
Revenue NY rev (3m)-5.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.6 | ||
| Fwd PE | 18.76 | ||
| P/S | 6.11 | ||
| P/FCF | 21.48 | ||
| P/OCF | 19.93 | ||
| P/B | 8.2 | ||
| P/tB | 9.08 | ||
| EV/EBITDA | 22.35 |
EPS(TTM)0.5
EY3.07%
EPS(NY)0.87
Fwd EY5.33%
FCF(TTM)0.76
FCFY4.66%
OCF(TTM)0.82
OCFY5.02%
SpS2.67
BVpS1.99
TBVpS1.8
PEG (NY)0.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 24.02% | ||
| ROCE | 27.16% | ||
| ROIC | 4.41% | ||
| ROICexc | 5.28% | ||
| ROICexgc | 5.43% | ||
| OM | 24.65% | ||
| PM (TTM) | 17.9% | ||
| GM | 43.42% | ||
| FCFM | 28.46% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.94 | ||
| Debt/EBITDA | 11.92 | ||
| Cap/Depr | 335.54% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 51.91 | ||
| Cash Conversion | 121.18% | ||
| Profit Quality | 159% | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 0.56 |
F-Score5
WACC14.37%
ROIC/WACC0.31
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)38.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.67%
EPS Next Y35.5%
EPS Next 2Y38.95%
EPS Next 3Y38.32%
EPS Next 5YN/A
Revenue 1Y (TTM)26.88%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%28.78%
Revenue Next Year18.64%
Revenue Next 2Y22.42%
Revenue Next 3Y22.92%
Revenue Next 5YN/A
EBIT growth 1Y39.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year140.14%
EBIT Next 3Y40.94%
EBIT Next 5YN/A
FCF growth 1Y97.99%
FCF growth 3YN/A
FCF growth 5Y52.3%
OCF growth 1Y96.38%
OCF growth 3YN/A
OCF growth 5Y54.09%