NU HOLDINGS LTD/CAYMAN ISL-A (NU) Stock Fundamental Analysis
NYSE:NU - New York Stock Exchange, Inc. - KYG6683N1034 - Common Stock - Currency: USD
Taking everything into account, NU scores 5 out of 10 in our fundamental rating. NU was compared to 396 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.
NU had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 3.97%, NU belongs to the best of the industry, outperforming 99.24% of the companies in the same industry.
NU has a better Return On Equity (24.98%) than 99.24% of its industry peers.
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 69.44% of its industry peers.
NU has a Operating Margin of 25.05%. This is amongst the best in the industry. NU outperforms 98.99% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
The debt/assets ratio for NU is higher compared to a year ago.
2.2 Solvency
NU has an Altman-Z score of 0.44. This is a bad value and indicates that NU is not financially healthy and even has some risk of bankruptcy.
NU has a Altman-Z score of 0.44. This is amongst the best in the industry. NU outperforms 100.00% of its industry peers.
The Debt to FCF ratio of NU is 8.83, which is on the high side as it means it would take NU, 8.83 years of fcf income to pay off all of its debts.
NU has a worse Debt to FCF ratio (8.83) than 78.54% of its industry peers.
NU has a Debt/Equity ratio of 3.83. This is a high value indicating a heavy dependency on external financing.
NU's Debt to Equity ratio of 3.83 is on the low side compared to the rest of the industry. NU is outperformed by 95.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.83 | ||
| Debt/FCF | 8.83 | ||
| Altman-Z | 0.44 |
ROIC/WACC0.37
WACC13.03%
2.3 Liquidity
A Current Ratio of 0.14 indicates that NU may have some problems paying its short term obligations.
NU has a Current ratio of 0.14. This is amongst the best in the industry. NU outperforms 100.00% of its industry peers.
NU has a Quick 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.
NU has a Quick ratio of 0.14. This is amongst the best in the industry. NU outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
NU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.27%, which is quite impressive.
Looking at the last year, NU shows a very strong growth in Revenue. The Revenue has grown by 31.52%.
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)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
The Earnings Per Share is expected to grow by 37.64% on average over the next years. This is a very strong growth
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 Y30.03%
EPS Next 2Y35.88%
EPS Next 3Y37.64%
EPS Next 5YN/A
Revenue Next Year26.18%
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
With a Price/Earnings ratio of 25.00, 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 84.60% of the companies listed in the same industry.
NU's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.60.
NU is valuated correctly with a Price/Forward Earnings ratio of 14.44.
NU's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NU is more expensive than 73.74% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, NU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 14.44 |
4.2 Price Multiples
NU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NU is cheaper than 98.99% 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 62.12% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.12 | ||
| EV/EBITDA | 17.58 |
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 37.64% in the coming years.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y35.88%
EPS Next 3Y37.64%
5. Dividend
5.1 Amount
No dividends for NU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12
-0.76 (-5.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners81.33%
Inst Owner Change-2.15%
Ins Owners0.11%
Ins Owner Change0%
Market Cap57.82B
Analysts74.62
Price Target14.19 (18.25%)
Short Float %3.13%
Short Ratio1.94
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)0.66%
PT rev (3m)-5.08%
EPS NQ rev (1m)-2.48%
EPS NQ rev (3m)-2.8%
EPS NY rev (1m)1.46%
EPS NY rev (3m)-5.65%
Revenue NQ rev (1m)8.24%
Revenue NQ rev (3m)8.24%
Revenue NY rev (1m)3.15%
Revenue NY rev (3m)-4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 14.44 | ||
| P/S | 4.81 | ||
| P/FCF | 15.12 | ||
| P/OCF | 14.26 | ||
| P/B | 6.72 | ||
| P/tB | 7.45 | ||
| EV/EBITDA | 17.58 |
EPS(TTM)0.48
EY4%
EPS(NY)0.83
Fwd EY6.92%
FCF(TTM)0.79
FCFY6.61%
OCF(TTM)0.84
OCFY7.01%
SpS2.5
BVpS1.79
TBVpS1.61
PEG (NY)0.83
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 | 0.44 |
F-Score7
WACC13.03%
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 Y30.03%
EPS Next 2Y35.88%
EPS Next 3Y37.64%
EPS Next 5YN/A
Revenue 1Y (TTM)31.52%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%18.71%
Revenue Next Year26.18%
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%