NU HOLDINGS LTD/CAYMAN ISL-A (NU) Stock Fundamental Analysis
NYSE:NU - New York Stock Exchange, Inc. - KYG6683N1034 - Common Stock - Currency: USD
NU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 392 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 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.
NU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NU has a Return On Assets of 3.97%. This is amongst the best in the industry. NU outperforms 99.49% of its industry peers.
With an excellent Return On Equity value of 24.98%, NU belongs to the best of the industry, outperforming 99.49% of the companies in the same industry.
NU has a Return On Invested Capital of 4.86%. This is amongst the best in the industry. NU outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.97% | ||
| ROE | 24.98% | ||
| ROIC | 4.86% |
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 17.88%. This is in the lower half of the industry: NU underperforms 68.11% of its industry peers.
NU's Operating Margin of 25.05% is amongst the best of the industry. NU outperforms 98.98% of its industry peers.
NU's Gross Margin of 44.82% is amongst the best of the industry. NU outperforms 100.00% of its industry peers.
NU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.05% | ||
| PM (TTM) | 17.88% | ||
| GM | 44.82% |
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.
Compared to 1 year ago, NU has more shares outstanding
Compared to 5 years ago, NU has more shares outstanding
NU has a worse debt/assets ratio than last year.
2.2 Solvency
NU has an Altman-Z score of 0.47. 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 (0.47) than 100.00% of its industry peers.
NU has a debt to FCF ratio of 8.83. This is a slightly negative value and a sign of low solvency as NU would need 8.83 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.83, NU is not doing good in the industry: 77.55% of the companies in the same industry are doing better.
A Debt/Equity ratio of 3.83 is on the high side and indicates that NU has dependencies on debt financing.
NU has a worse Debt to Equity ratio (3.83) than 95.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.83 | ||
| Debt/FCF | 8.83 | ||
| Altman-Z | 0.47 |
ROIC/WACC0.37
WACC13.26%
2.3 Liquidity
NU has a Current Ratio of 0.14. This is a bad value and indicates that NU is not financially healthy enough and could expect problems in meeting its short term obligations.
With an excellent Current ratio value of 0.14, NU belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 0.14 indicates that NU may have some problems paying its short term obligations.
NU has a better Quick ratio (0.14) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 63.27% over the past year.
Looking at the last year, NU shows a very strong growth in Revenue. The Revenue has grown by 31.52%.
NU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 79.85% yearly.
EPS 1Y (TTM)63.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)31.52%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%18.71%
3.2 Future
NU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.83% yearly.
Based on estimates for the next years, NU will show a very strong growth in Revenue. The Revenue will grow by 26.65% on average per year.
EPS Next Y31.35%
EPS Next 2Y36.31%
EPS Next 3Y39.83%
EPS Next 5YN/A
Revenue Next Year21.61%
Revenue Next 2Y23.9%
Revenue Next 3Y26.65%
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
The Price/Earnings ratio is 25.63, which means the current valuation is very expensive for NU.
84.44% of the companies in the same industry are cheaper than NU, based on the Price/Earnings ratio.
NU is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.71, NU is valued correctly.
75.00% of the companies in the same industry are cheaper than NU, based on the Price/Forward Earnings ratio.
NU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.63 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NU is valued cheaper than 98.98% of the companies in the same industry.
63.01% of the companies in the same industry are cheaper than NU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.5 | ||
| EV/EBITDA | 18.22 |
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.
The decent profitability rating of NU may justify a higher PE ratio.
A more expensive valuation may be justified as NU's earnings are expected to grow with 39.83% in the coming years.
PEG (NY)0.82
PEG (5Y)N/A
EPS Next 2Y36.31%
EPS Next 3Y39.83%
5. Dividend
5.1 Amount
No dividends for NU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.3
-0.11 (-0.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners79.05%
Inst Owner Change0.26%
Ins Owners0.29%
Ins Owner Change0%
Market Cap59.27B
Analysts75.2
Price Target14.34 (16.59%)
Short Float %2.9%
Short Ratio1.53
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)0
Avg EPS beat(2)-4.54%
Min EPS beat(2)-6.52%
Max EPS beat(2)-2.56%
EPS beat(4)2
Avg EPS beat(4)4.79%
Min EPS beat(4)-6.52%
Max EPS beat(4)22.21%
EPS beat(8)5
Avg EPS beat(8)4.56%
EPS beat(12)9
Avg EPS beat(12)32.58%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-5.7%
Min Revenue beat(2)-11.83%
Max Revenue beat(2)0.42%
Revenue beat(4)2
Avg Revenue beat(4)-4.12%
Min Revenue beat(4)-11.83%
Max Revenue beat(4)0.42%
Revenue beat(8)6
Avg Revenue beat(8)0.04%
Revenue beat(12)9
Avg Revenue beat(12)2.07%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.4%
PT rev (3m)1.67%
EPS NQ rev (1m)1.3%
EPS NQ rev (3m)-0.05%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.63 | ||
| Fwd PE | 14.71 | ||
| P/S | 4.93 | ||
| P/FCF | 15.5 | ||
| P/OCF | 14.62 | ||
| P/B | 6.89 | ||
| P/tB | 7.64 | ||
| EV/EBITDA | 18.22 |
EPS(TTM)0.48
EY3.9%
EPS(NY)0.84
Fwd EY6.8%
FCF(TTM)0.79
FCFY6.45%
OCF(TTM)0.84
OCFY6.84%
SpS2.5
BVpS1.79
TBVpS1.61
PEG (NY)0.82
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.97% | ||
| ROE | 24.98% | ||
| ROCE | 28.38% | ||
| ROIC | 4.86% | ||
| ROICexc | 5.53% | ||
| ROICexgc | 5.68% | ||
| OM | 25.05% | ||
| PM (TTM) | 17.88% | ||
| GM | 44.82% | ||
| FCFM | 31.79% |
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-Score7
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.83 | ||
| Debt/FCF | 8.83 | ||
| Debt/EBITDA | 10.67 | ||
| Cap/Depr | 288.46% | ||
| Cap/Sales | 1.92% | ||
| Interest Coverage | 41.74 | ||
| Cash Conversion | 131.11% | ||
| Profit Quality | 177.83% | ||
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 0.47 |
F-Score7
WACC13.26%
ROIC/WACC0.37
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)63.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y31.35%
EPS Next 2Y36.31%
EPS Next 3Y39.83%
EPS Next 5YN/A
Revenue 1Y (TTM)31.52%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%18.71%
Revenue Next Year21.61%
Revenue Next 2Y23.9%
Revenue Next 3Y26.65%
Revenue Next 5YN/A
EBIT growth 1Y60.77%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year144.91%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y511.41%
FCF growth 3YN/A
FCF growth 5Y52.3%
OCF growth 1Y425.56%
OCF growth 3YN/A
OCF growth 5Y54.09%