Now trading at a price of $14.31, Nu has moved 2.7% so far today.
Over the last year, Nu logged a -4.7% 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 -19.9%. AThe company's 50-day average price was $12.87. 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.
Generally Positive Cash Flows but a Declining EPS Growth Trend:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $612 | $737 | $1,698 | $4,792 | $8,029 | $11,517 |
| Interest Income (M) | -$110 | $114 | $367 | $1,548 | $2,037 | $2,835 |
| Net Margins | -15% | -23% | -10% | -8% | 13% | 17% |
| Net Income (M) | -$93 | -$171 | -$165 | -$365 | $1,031 | $1,972 |
| Depreciation & Amort. (M) | $5 | $7 | $17 | $36 | $63 | $77 |
| Earnings Per Share | $1137931.0 | $1315578.0 | -$0.1 | -$0.08 | $0.21 | $0.4 |
| EPS Growth | n/a | 15.61% | -100.0% | 20.0% | 362.5% | 90.48% |
| Free Cash Flow (M) | $276 | $975 | -$2,924 | $756 | $1,266 | $2,399 |
| Total Debt (M) | n/a | $272 | $1,342 | $2,259 | $4,339 | $7,052 |
Nu's Valuation Is in Line With Its Sector Averages:
Nu has a trailing twelve month P/E ratio of 27.4, 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 20.8. The -87.3% compound average growth rate of Nu's historical and projected earnings per share yields a PEG ratio of -0.31. 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 7.23 is higher than the sector average of 1.78. The company's shares are currently trading 281.7% 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.
Nu Has an Analyst Consensus of Some Upside Potential:
The 18 analysts following Nu have set target prices ranging from $12.0 to $20.0 per share, for an average of $16.47 with a buy rating. The company is trading -13.1% 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 3.2% of the company's shares are sold short. Institutions own 79.4% 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 $3,830,110,021.
