NU HOLDINGS LTD/CAYMAN ISL-A (NU) Stock Fundamental Analysis
USA - NYSE:NU - KYG6683N1034 - Common Stock
15.41 USD
+0.41 (+2.73%)
15.28 USD
-0.13 (-0.84%)
NU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 391 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 growing strongly while it is still valued neutral. This is a good combination!
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.
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
The Return On Assets of NU (3.67%) is better than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 24.02%, NU belongs to the top of the industry, outperforming 99.74% of the companies in the same industry.
With an excellent Return On Invested Capital value of 4.41%, NU belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| 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
The Profit Margin of NU (17.90%) is worse than 68.03% of its industry peers.
NU's Operating Margin of 24.65% is amongst the best of the industry. NU outperforms 98.72% of its industry peers.
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.
NU's Gross Margin has improved in the last couple of years.
| 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
NU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NU has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NU has more shares outstanding
The debt/assets ratio for NU is higher compared to a year ago.
2.2 Solvency
NU has an Altman-Z score of 0.51. This is a bad value and indicates that NU is not financially healthy and even has some risk of bankruptcy.
NU has a better Altman-Z score (0.51) than 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 79.54% of its industry peers.
A Debt/Equity ratio of 4.05 is on the high side and indicates that NU has dependencies on debt financing.
The Debt to Equity ratio of NU (4.05) is worse than 95.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.94 | ||
| Altman-Z | 0.51 |
ROIC/WACC0.31
WACC14.16%
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.
A Quick Ratio of 0.18 indicates that NU may have some problems paying 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
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!
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)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
NU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.32% yearly.
Based on estimates for the next years, NU will show a very strong growth in Revenue. The Revenue will grow by 22.88% on average per year.
EPS Next Y35.5%
EPS Next 2Y38.95%
EPS Next 3Y38.32%
EPS Next 5YN/A
Revenue Next Year21.19%
Revenue Next 2Y22.4%
Revenue Next 3Y22.88%
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 30.82, NU can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NU is valued more expensive than 84.91% of the companies in the same industry.
NU is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
NU is valuated rather expensively with a Price/Forward Earnings ratio of 17.74.
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 77.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, NU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.82 | ||
| Fwd PE | 17.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NU is valued cheaper than 98.72% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NU is valued a bit more expensive than the industry average as 70.84% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.31 | ||
| EV/EBITDA | 21.04 |
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.
NU's earnings are expected to grow with 38.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y38.95%
EPS Next 3Y38.32%
5. Dividend
5.1 Amount
NU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.41
+0.41 (+2.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners79.06%
Inst Owner Change0.39%
Ins Owners0.29%
Ins Owner Change0%
Market Cap74.26B
Analysts80.83
Price Target16.5 (7.07%)
Short Float %3.26%
Short Ratio2.39
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)0%
PT rev (3m)15.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.63%
EPS NY rev (1m)0%
EPS NY rev (3m)3.16%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-4.13%
Revenue NY rev (1m)2.15%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.82 | ||
| Fwd PE | 17.74 | ||
| P/S | 5.78 | ||
| P/FCF | 20.31 | ||
| P/OCF | 18.84 | ||
| P/B | 7.76 | ||
| P/tB | 8.58 | ||
| EV/EBITDA | 21.04 |
EPS(TTM)0.5
EY3.24%
EPS(NY)0.87
Fwd EY5.64%
FCF(TTM)0.76
FCFY4.92%
OCF(TTM)0.82
OCFY5.31%
SpS2.67
BVpS1.99
TBVpS1.8
PEG (NY)0.87
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 | 0.51 |
F-Score5
WACC14.16%
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 Year21.19%
Revenue Next 2Y22.4%
Revenue Next 3Y22.88%
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%