NU HOLDINGS LTD/CAYMAN ISL-A (NU) Stock Fundamental Analysis
NYSE:NU - KYG6683N1034 - Common Stock
14.86 USD
+0.06 (+0.41%)
14.8223 USD
-0.04 (-0.25%)
Taking everything into account, NU scores 5 out of 10 in our fundamental rating. NU was compared to 395 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
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
NU has a better Return On Assets (3.67%) than 99.49% of its industry peers.
NU has a better Return On Equity (24.02%) than 99.49% 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's Profit Margin of 17.90% is on the low side compared to the rest of the industry. NU is outperformed by 68.10% of its industry peers.
Looking at the Operating Margin, with a value of 24.65%, NU belongs to the top of the industry, outperforming 98.73% of the companies in the same industry.
NU has a better Gross Margin (43.42%) than 100.00% of its industry peers.
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.
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
NU has an Altman-Z score of 0.48. This is a bad value and indicates that NU is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.48, NU belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 10.94, NU is doing worse than 78.48% of the companies in the same industry.
A Debt/Equity ratio of 4.05 is on the high side and indicates that NU has dependencies on debt financing.
NU has a Debt to Equity ratio of 4.05. This is amonst the worse of the industry: NU underperforms 95.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.94 | ||
| Altman-Z | 0.48 |
ROIC/WACC0.31
WACC14.02%
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.
Looking at the Current ratio, with a value of 0.18, NU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 Quick ratio of 0.18. This is amongst the best in the industry. NU outperforms 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 42.31% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 22.40% on average over the next years. This is a very strong growth
EPS Next Y34.53%
EPS Next 2Y39.78%
EPS Next 3Y42.31%
EPS Next 5YN/A
Revenue Next Year16.61%
Revenue Next 2Y20.32%
Revenue Next 3Y22.4%
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
A Price/Earnings ratio of 29.72 indicates a quite expensive valuation of NU.
84.81% of the companies in the same industry are cheaper than NU, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.90. NU is around the same levels.
Based on the Price/Forward Earnings ratio of 16.90, the valuation of NU can be described as correct.
NU's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NU is more expensive than 75.95% of the companies in the same industry.
NU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.72 | ||
| Fwd PE | 16.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NU is valued cheaply inside the industry as 98.73% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NU is valued a bit more expensive than 68.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.58 | ||
| EV/EBITDA | 20.13 |
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 42.31% in the coming years.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y39.78%
EPS Next 3Y42.31%
5. Dividend
5.1 Amount
NU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.86
+0.06 (+0.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners78.96%
Inst Owner Change-3.24%
Ins Owners0.29%
Ins Owner Change0%
Market Cap71.61B
Analysts75.2
Price Target15.26 (2.69%)
Short Float %3.5%
Short Ratio1.88
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)6.43%
PT rev (3m)8.36%
EPS NQ rev (1m)7.38%
EPS NQ rev (3m)12.74%
EPS NY rev (1m)2.42%
EPS NY rev (3m)3.46%
Revenue NQ rev (1m)2.18%
Revenue NQ rev (3m)5.78%
Revenue NY rev (1m)-4.11%
Revenue NY rev (3m)-5.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.72 | ||
| Fwd PE | 16.9 | ||
| P/S | 5.57 | ||
| P/FCF | 19.58 | ||
| P/OCF | 18.17 | ||
| P/B | 7.48 | ||
| P/tB | 8.28 | ||
| EV/EBITDA | 20.13 |
EPS(TTM)0.5
EY3.36%
EPS(NY)0.88
Fwd EY5.92%
FCF(TTM)0.76
FCFY5.11%
OCF(TTM)0.82
OCFY5.5%
SpS2.67
BVpS1.99
TBVpS1.8
PEG (NY)0.86
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 | 0.48 |
F-Score5
WACC14.02%
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 Y34.53%
EPS Next 2Y39.78%
EPS Next 3Y42.31%
EPS Next 5YN/A
Revenue 1Y (TTM)26.88%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%28.78%
Revenue Next Year16.61%
Revenue Next 2Y20.32%
Revenue Next 3Y22.4%
Revenue Next 5YN/A
EBIT growth 1Y39.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year140.14%
EBIT Next 3Y57.64%
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%