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NU

Nu Holdings NYSE:NU Stock Report

Last Price

US$3.81

Market Cap

US$17.8b

7D

-21.0%

1Y

n/a

Updated

22 May, 2022

Data

Company Financials +
NU fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance0/6
Financial Health1/6
Dividends0/6

NU Stock Overview

Nu Holdings Ltd. operates as a digital financial services platform and technology company primarily in Brazil, Mexico, and Colombia.

Nu Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nu Holdings
Historical stock prices
Current Share PriceUS$3.81
52 Week HighUS$12.24
52 Week LowUS$3.32
Beta0
1 Month Change-42.96%
3 Month Change-61.32%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-63.12%

Recent News & Updates

May 04

Nu Holdings: Digital Bank On Its Way To Disrupt LATAM Banking Sector

LATAM banking sector has all characteristics for disruption. Business model build on customer-centric approach and simplicity. Favorable unit economics enable high profitability going forward.

Apr 18

Nu Holdings: Strong Buy For Long-Term Compounder With 70% Upside

Nu Holdings has a large addressable market in Latin America that is underserved or unserved by traditional banks. Nu Holdings has an enviable position of strong customer growth fueled by a high engagement rate and low customer acquisition cost. Nu Holdings is one of the rare high-growth fintech companies with the ability and visibility to turn profitable in the nearer term as it continues to scale up. Nu Holdings continues to deliver strong asset quality even as it sees strong growth in its credit portfolio. My target price of Nu Holdings is $12, implying a 70% upside potential to current prices.

Apr 01
Nu Holdings (NYSE:NU) is Disrupting Banking in Latin America, but the Valuation may be Concerning

Nu Holdings (NYSE:NU) is Disrupting Banking in Latin America, but the Valuation may be Concerning

Nu Holdings Ltd. (NYSE:NU) is one of the newer stocks added to Warren Buffett's portfolio since the company went public last year. Investors tracking his performance are interested in the qualities of this company, and that is what we will review today.

Shareholder Returns

NUUS BanksUS Market
7D-21.0%-1.5%-2.7%
1Yn/a-19.9%-12.9%

Return vs Industry: Insufficient data to determine how NU performed against the US Banks industry.

Return vs Market: Insufficient data to determine how NU performed against the US Market.

Price Volatility

Is NU's price volatile compared to industry and market?
NU volatility
NU Average Weekly Movement15.3%
Banks Industry Average Movement4.0%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: NU is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: Insufficient data to determine NU's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
20135,403David Velez-Osomohttps://www.nubank.com.br

Nu Holdings Ltd. operates as a digital financial services platform and technology company primarily in Brazil, Mexico, and Colombia. It offers Nu credit and debit cards; Ultraviolet credit and debit cards; and mobile payment solutions for NuAccount customers to make and receive transfers, pay bills, and make everyday purchases through their mobile phones. The company provides savings solutions, such as Nu Personal Accounts, a digital account solution that supports all personal finance activities, from daily purchases and money transfers to savings; and Nu business accounts designed specifically for entrepreneur customers and their businesses.

Nu Holdings Fundamentals Summary

How do Nu Holdings's earnings and revenue compare to its market cap?
NU fundamental statistics
Market CapUS$17.77b
Earnings (TTM)-US$160.61m
Revenue (TTM)US$1.04b

3.7x

P/B Ratio

17.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NU income statement (TTM)
RevenueUS$1.04b
Cost of RevenueUS$0
Gross ProfitUS$1.04b
Other ExpensesUS$1.20b
Earnings-US$160.61m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.034
Gross Margin100.00%
Net Profit Margin-15.49%
Debt/Equity Ratio7.3%

How did NU perform over the long term?

See historical performance and comparison

Valuation

Is Nu Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


3.71x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: NU ($3.81) is trading above our estimate of fair value ($1.38)

Significantly Below Fair Value: NU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NU is unprofitable, so we can't compare its PE Ratio to the US Banks industry average.

PE vs Market: NU is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NU is overvalued based on its PB Ratio (3.7x) compared to the US Banks industry average (1.1x).


Future Growth

How is Nu Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


75.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: NU is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NU's is expected to become profitable in the next 3 years.

Revenue vs Market: NU's revenue (34% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: NU's revenue (34% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NU's Return on Equity is forecast to be low in 3 years time (19.8%).


Past Performance

How has Nu Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-31.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NU is currently unprofitable.

Growing Profit Margin: NU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NU is unprofitable, and losses have increased over the past 5 years at a rate of 31.9% per year.

Accelerating Growth: Unable to compare NU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NU is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (20.9%).


Return on Equity

High ROE: NU has a negative Return on Equity (-3.36%), as it is currently unprofitable.


Financial Health

How is Nu Holdings's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

1/6

Financial Health Score 1/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: NU's Assets to Equity ratio (5.1x) is low.

Allowance for Bad Loans: Insufficient data to determine if NU has a sufficient allowance for bad loans.

Low Risk Liabilities: NU reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if NU has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: NU reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if NU has an appropriate level of bad loans.


Dividend

What is Nu Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.11%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate NU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NU's dividend payments have been increasing.


Current Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

David Velez-Osomo

9.33yrs

Tenure

Mr. David Velez- Osorno is the Founder of Eo2 Solucoes De Pagamento S.A. Mr. Velez- Osorno was a Partner at Sequoia Capital. Mr. Velez- Osorno has been Global Chief Executive Officer at Nu Pagamentos S.A....


Leadership Team

Experienced Management: NU's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: NU's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: NU only recently listed within the past 12 months.


Top Shareholders

Company Information

Nu Holdings Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Nu Holdings Ltd.
  • Ticker: NU
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: US$17.767b
  • Shares outstanding: 4.66b
  • Website: https://www.nubank.com.br

Number of Employees


Location

  • Nu Holdings Ltd.
  • Rua Capote Valente, 39
  • São Paulo
  • São Paulo
  • 5409-0000
  • Brazil

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/22 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.