NU

Nu Holdings Ltd.

Fundamental data last updated:November 6, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

NYSE

County of HQ

Brazil

Next Earnings Date

11/12/2026

Business Summary

NU's business model thrives on digital banking services, offering a seamless user experience that locks in customers. By leveraging technology, it reduces costs and enhances customer engagement. Its competitive moat lies in its ability to scale rapidly and offer innovative financial products. This approach not only generates cash but also builds a loyal customer base.

 


VALUATION

P/E

16.18

Market Cap ($M USD)

$57.82B

Forward P/E

13.68

PEG

0.37

PRICE TO SALES

2.98

PRICE TO BOOK

4.39

EV / EBITDA

17.74

5-Year Average P/E

Free Cash Flow Yield

-7.29%

DCF Value

$14.11

Graham Number

$6.75

Price to FCF

-13.71

EV to FCF

-19.03

Earnings Yield

6.20%

FCF Yield

-7.29%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.74

Next Year EPS Growth Estimate

$0.87

Next Year Revenue Growth Estimate

$22.87B

Return on Equity (ROE)

30.26%

FREE CASH FLOW

Operating Margin

22.62%

Debt-to-Equity

3.17

Piotroski F-Score

4

Altman Z-Score

0.60

Return on Invested Capital (ROIC)

4.36%

Current Ratio

0.25

Quick Ratio

0.25

Net Debt to EBITDA

4.96

Interest Coverage

0.80

Gross Profit margin

44.03%

FCF PER SHARE

$-0.87

REVENUE PER SHARE

$3.99

Gainseekers Quantitative Analysis

Summary

The market seems to be undervaluing NU Nu Holdings Ltd. relative to its intrinsic worth. Recent pricing indicated it traded below its DCF Value, suggesting a potential upside. However, the Altman Z-score of 0.60 raises red flags about financial distress risk. The Forward P/E of 13.68 and an Earnings Yield of 6.20% imply reasonable growth expectations, yet the company’s safety profile is questionable. Investors should weigh these factors carefully before making a decision.

AI Exposure / Tech Reliance

Operating in the financial services sector, NU is well-positioned to leverage AI and tech advancements. As a regional bank, it can integrate AI for enhanced customer service and risk management. This adaptability is crucial for maintaining competitiveness in a rapidly evolving industry.

The Bull Case

For the value-driven investor, NU offers compelling reasons to buy. A robust Return on Equity of 30.26% highlights exceptional capital efficiency, while a low PEG Forward of 0.37 suggests undervaluation relative to growth. Despite a Piotroski F-Score of 4, the company's operating margin of 22.62% indicates strong pricing power. These metrics paint a picture of a company with solid fundamentals and growth potential.

The Bear Case

Despite some strengths, NU's structural weaknesses are glaring. The Debt/Equity ratio of 3.17 signals significant leverage, and a Current Ratio of 0.25 raises liquidity concerns. Its Price/Book ratio of 4.39 suggests overvaluation, and negative Free Cash Flow Yield highlights cash flow issues. These factors, combined with a low Altman Z-score, suggest potential financial instability.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$17.36

Institutional Ownership %

1-Year Beta

0.96

Insider Buying % (6 Mo)

Distance to 52-Week High

58.56%

Distance to 52-Week Low

6.43%

EARNINGS SURPRISE %

10.89%

50-DAY SMA

$14.42

200-DAY SMA

$14.51

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.