Nu logged a -0.5% change during today's morning session, and is now trading at a price of $11.95 per share.
Over the last year, Nu logged a 2.0% change, with its stock price reaching a high of $16.14 and a low of $9.01. Over the same period, the stock underperformed the S&P 500 index by -9.3%. AThe company's 50-day average price was $11.84. Nu Holdings Ltd. provides digital banking platform in Brazil, Mexico, Colombia, the Cayman Islands, and the United States. The Large-Cap Finance company is headquartered in São Paulo, Brazil. Nu has not offered a dividend during the last year.
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 |
Nu's Valuation Is in Line With Its Sector Averages:
Nu has a trailing twelve month P/E ratio of 26.9, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $0.62, the company has a forward P/E ratio of 19.1. The -91.0% compound average growth rate of Nu's historical and projected earnings per share yields a PEG ratio of -0.3. This indicates that its shares are overvalued.Furthermore, Nu is likely overvalued compared to the book value of its equity, since its P/B ratio of 6.7 is higher than the sector average of 1.78. The company's shares are currently trading 374.0% below their Graham number. Ultimately, Nu's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Analysts Give Nu an Average Rating of Buy:
The 20 analysts following Nu have set target prices ranging from $9.0 to $18.9 per share, for an average of $14.55 with a buy rating. The company is trading -17.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Nu has an average amount of shares sold short because 2.8% of the company's shares are sold short. Institutions own 80.1% of the company's shares, and the insider ownership rate stands at 4.94%, suggesting a large amount of insider shareholders. The largest shareholder is Blackrock Inc., whose 7% stake in the company is worth $3,273,245,861.
