We've been asking ourselves recently if the market has placed a fair valuation on Nu. Let's dive into some of the fundamental values of this Large-Cap Finance company to determine if there might be an opportunity here for value-minded investors.
Nu's Valuation Is in Line With Its Sector Averages:
Nu Holdings Ltd. provides digital banking platform in Brazil, Mexico, Colombia, Cayman Islands, Germany, Argentina, the United States, and Uruguay. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 20.04 and an average price to book (P/B) ratio of 1.86. In contrast, Nu has a trailing 12 month P/E ratio of 29.6 and a P/B ratio of 7.47.
Nu has moved -0.5% over the last year compared to 9.5% for the S&P 500 — a difference of -10.0%. Nu has a 52 week high of $16.14 and a 52 week low of $9.67.
Positive Cash Flows but a Declining EPS Growth Trend:
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Revenue (M) | $612 | $737 | $1,698 | $4,792 | $8,029 |
| Interest Income (M) | -$110 | $114 | $367 | $1,548 | $2,037 |
| Net Margins | -15% | -23% | -10% | -8% | 13% |
| Net Income (M) | -$93 | -$171 | -$165 | -$365 | $1,031 |
| Depreciation & Amort. (M) | $5 | $7 | $17 | $36 | $63 |
| Earnings Per Share | $1137931.0 | $1315578.0 | -$0.1 | -$0.08 | $0.21 |
| EPS Growth | n/a | 15.61% | -100.0% | 20.0% | 362.5% |
| Free Cash Flow (M) | $276 | $975 | -$2,924 | $756 | $1,266 |
| Total Debt (M) | n/a | $272 | $1,342 | $2,259 | $4,339 |
