NU HOLDINGS LTD/CAYMAN ISL-A (NU) Stock Fundamental Analysis
NYSE:NU - New York Stock Exchange, Inc. - KYG6683N1034 - Common Stock - Currency: USD
Overall NU gets a fundamental rating of 5 out of 10. We evaluated NU against 396 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 not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
NU had positive earnings in the past year.
NU had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NU reported negative net income in multiple years.
Of the past 5 years NU 4 years had a positive operating cash flow.
1.2 Ratios
NU has a better Return On Assets (3.95%) than 99.24% of its industry peers.
Looking at the Return On Equity, with a value of 25.79%, NU belongs to the top of the industry, outperforming 99.49% of the companies in the same industry.
NU has a better Return On Invested Capital (4.94%) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 25.79% | ||
| ROIC | 4.94% |
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 worse Profit Margin (17.12%) than 70.96% of its industry peers.
The Operating Margin of NU (24.27%) is better than 98.99% of its industry peers.
NU has a Gross Margin of 73.13%. This is amongst the best in the industry. NU outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of NU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.27% | ||
| PM (TTM) | 17.12% | ||
| GM | 73.13% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.77%
GM growth 5Y1.13%
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.
The number of shares outstanding for NU has been increased compared to 1 year ago.
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 0.64. 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 (0.64) than 100.00% of its industry peers.
NU has a debt to FCF ratio of 13.90. This is a negative value and a sign of low solvency as NU would need 13.90 years to pay back of all of its debts.
NU's Debt to FCF ratio of 13.90 is on the low side compared to the rest of the industry. NU is outperformed by 81.06% of its industry peers.
NU has a Debt/Equity ratio of 3.99. This is a high value indicating a heavy dependency on external financing.
NU's Debt to Equity ratio of 3.99 is on the low side compared to the rest of the industry. NU is outperformed by 96.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 13.9 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.36
WACC13.63%
2.3 Liquidity
A Current Ratio of 0.20 indicates that NU may have some problems paying its short term obligations.
NU's Current ratio of 0.20 is amongst the best of the industry. NU outperforms 100.00% of its industry peers.
NU has a Quick Ratio of 0.20. 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 Quick ratio of 0.20 is amongst the best of the industry. NU outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 |
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.
The Revenue has grown by 43.44% in the past year. This is a very strong growth!
The Revenue has been growing by 79.85% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)63.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)43.44%
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 27.80% on average per year.
EPS Next Y30.03%
EPS Next 2Y35.88%
EPS Next 3Y37.64%
EPS Next 5YN/A
Revenue Next Year23.58%
Revenue Next 2Y21.54%
Revenue Next 3Y27.8%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.60 indicates a quite expensive valuation of NU.
Based on the Price/Earnings ratio, NU is valued expensively inside the industry as 85.35% of the companies are valued cheaper.
The average S&P500 Price/Earnings ratio is at 26.60. NU is around the same levels.
With a Price/Forward Earnings ratio of 15.37, NU is valued correctly.
Based on the Price/Forward Earnings ratio, NU is valued a bit more expensive than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, NU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.6 | ||
| Fwd PE | 15.37 |
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.
80.81% 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 | 27.67 | ||
| EV/EBITDA | 20.25 |
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.
NU's earnings are expected to grow with 37.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
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 |
12.77
-0.33 (-2.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners81.33%
Inst Owner Change-2.23%
Ins Owners0.11%
Ins Owner Change0%
Market Cap61.53B
Analysts74.62
Price Target14.08 (10.26%)
Short Float %3.74%
Short Ratio2.33
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)1.73%
Min EPS beat(2)-2.56%
Max EPS beat(2)6.03%
EPS beat(4)3
Avg EPS beat(4)7.12%
Min EPS beat(4)-2.56%
Max EPS beat(4)22.21%
EPS beat(8)6
Avg EPS beat(8)13.68%
EPS beat(12)10
Avg EPS beat(12)45.23%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-5.84%
Min Revenue beat(2)-11.83%
Max Revenue beat(2)0.14%
Revenue beat(4)2
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-11.83%
Max Revenue beat(4)6.54%
Revenue beat(8)6
Avg Revenue beat(8)0.27%
Revenue beat(12)9
Avg Revenue beat(12)5.07%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.36%
PT rev (3m)-5.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.86%
EPS NY rev (1m)1.46%
EPS NY rev (3m)-5.65%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)-11.2%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-6.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.6 | ||
| Fwd PE | 15.37 | ||
| P/S | 5.34 | ||
| P/FCF | 27.67 | ||
| P/OCF | 25.65 | ||
| P/B | 8.05 | ||
| P/tB | 8.94 | ||
| EV/EBITDA | 20.25 |
EPS(TTM)0.48
EY3.76%
EPS(NY)0.83
Fwd EY6.51%
FCF(TTM)0.46
FCFY3.61%
OCF(TTM)0.5
OCFY3.9%
SpS2.39
BVpS1.59
TBVpS1.43
PEG (NY)0.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 25.79% | ||
| ROCE | 28.71% | ||
| ROIC | 4.94% | ||
| ROICexc | 5.97% | ||
| ROICexgc | 6.14% | ||
| OM | 24.27% | ||
| PM (TTM) | 17.12% | ||
| GM | 73.13% | ||
| FCFM | 19.31% |
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 3Y0.77%
GM growth 5Y1.13%
F-Score7
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 13.9 | ||
| Debt/EBITDA | 10.62 | ||
| Cap/Depr | 226.88% | ||
| Cap/Sales | 1.52% | ||
| Interest Coverage | 31.73 | ||
| Cash Conversion | 83.52% | ||
| Profit Quality | 112.78% | ||
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 | ||
| Altman-Z | 0.64 |
F-Score7
WACC13.63%
ROIC/WACC0.36
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)43.44%
Revenue growth 3Y89.29%
Revenue growth 5Y79.85%
Sales Q2Q%18.71%
Revenue Next Year23.58%
Revenue Next 2Y21.54%
Revenue Next 3Y27.8%
Revenue Next 5YN/A
EBIT growth 1Y81.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year144.91%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y104.19%
FCF growth 3YN/A
FCF growth 5Y52.3%
OCF growth 1Y89.47%
OCF growth 3YN/A
OCF growth 5Y54.09%