Nu Holdings (NU) AI Stock Analysis

• Market Cap: $78.54B
• Dividend Yield: N/A
• Average Volume (3M): 52.78M
• Price to Earnings (P/E): 34.1
• Beta (1Y): 1.31
• Revenue Growth: 28.56%
• EPS Growth: 49.10%
• Country: US
• Employees: 5,403
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.14
• Shares Outstanding: 3,768,057,900
• 10 Day Avg. Volume: 43,980,567
• 30 Day Avg. Volume: 52,775,982
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 7.18
• Enterprise Value/Gross Profit: 16.48
• Enterprise Value/Ebitda: 27.39
• 1Y Price Target: $17.38
• Price Target Upside: 6.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $15.50 ▼(-4.91% Downside)

Nu Holdings demonstrates strong financial performance with robust revenue growth and profitability, supported by positive technical indicators. While the valuation suggests high growth expectations, the absence of a dividend yield indicates a focus on reinvestment. The company's strategic expansion and efficient scaling are key strengths, though macroeconomic challenges in Brazil require attention.

Positive Factors

Revenue Growth

Nu Holdings' significant revenue growth indicates robust market demand and successful expansion strategies, enhancing its competitive position in Latin America.

Customer Base Expansion

A growing customer base strengthens Nu Holdings' market presence and provides opportunities for cross-selling, supporting long-term revenue and profitability.

Efficient Scaling

Improved efficiency ratio reflects operational excellence, allowing Nu Holdings to maintain profitability while expanding, a key factor for sustainable growth.

Negative Factors

Credit Loss Allowances

Challenges with credit loss allowances could indicate future volatility in earnings, impacting financial stability if not managed effectively.

INSS System Disruption

System disruptions affecting loan origination can hinder growth in key product areas, potentially impacting revenue and customer satisfaction.

Asset Quality Concerns

Macroeconomic challenges in Brazil could affect asset quality, posing risks to Nu Holdings' credit portfolio and long-term financial health.

Nu Holdings Business Overview & Revenue Model

Company Description

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. In addition, it offers NuInvest, an investment product that provides equity, fixed-income, options, and ETF products, as well as multimarket funds with curated asset allocations based on the customer's risk profile and financial position; personal unsecured loans; in-app buy now pay later' solution for Nu card customers to pay credit and debit purchases, and banking payment slips over time in up to twelve installments; and NuInsurance protecting solutions to help its customers secure life insurance and funeral benefits. The company was founded in 2013 and is headquartered in Sao Paulo, Brazil.

How the Company Makes Money

Nu Holdings generates revenue through multiple key streams, primarily from its financial products and services. The company earns interest income from loans and credit products, including personal loans and credit card balances. Additionally, Nu charges fees for certain financial transactions and services, such as international money transfers. The company also benefits from interchange fees when customers use their Nu credit cards for purchases. Strategic partnerships with other financial institutions and technology providers further enhance its service offerings, contributing to customer acquisition and retention, which ultimately drives revenue growth.

Nu Holdings Financial Statement Overview

Summary

Nu Holdings exhibits strong financial health with robust revenue growth and profitability. The company maintains a solid balance sheet with low leverage and high return on equity. While cash flow generation is strong, the recent decline in free cash flow growth warrants monitoring.

Income Statement

Nu Holdings has demonstrated strong revenue growth, with a 6.8% increase in TTM. The company maintains healthy margins, with a gross profit margin of 45.04% and a net profit margin of 18.52%. The EBIT and EBITDA margins are also robust at 25.94% and 26.62%, respectively. These figures indicate strong profitability and operational efficiency.

Balance Sheet

The balance sheet shows a solid financial position with a low debt-to-equity ratio of 0.10, indicating prudent leverage management. The return on equity is impressive at 27.91%, reflecting effective use of equity capital. The equity ratio is 15.27%, suggesting a stable capital structure, though there is room for improvement in asset utilization.

Cash Flow

Nu Holdings has a strong operating cash flow to net income ratio of 0.95, indicating good cash generation relative to earnings. However, the free cash flow growth rate is negative at -4.37%, which could be a concern if it persists. The free cash flow to net income ratio is healthy at 0.94, showing efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.40B	11.10B	7.67B	4.52B	1.51B	574.99M
Gross Profit	5.40B	5.10B	3.35B	1.57B	664.56M	190.43M
EBITDA	3.25B	2.87B	1.60B	35.27B	-152.82M	-185.75M
Net Income	2.30B	1.97B	1.03B	-364.58M	-164.99M	-171.49M
Balance Sheet
Total Assets	62.73B	49.93B	43.35B	29.93B	19.86B	10.15B
Cash, Cash Equivalents and Short-Term Investments	27.47B	23.15B	22.02B	16.84B	10.69B	2.39B
Total Debt	1.64B	886.53M	1.17B	803.16M	167.92M	189.21M
Total Liabilities	53.15B	42.28B	36.94B	25.04B	15.42B	9.72B
Stockholders Equity	9.57B	7.65B	6.41B	4.89B	4.44B	438.11M
Cash Flow
Free Cash Flow	3.66B	2.22B	1.09B	641.27M	-2.95B	966.53M
Operating Cash Flow	3.94B	2.40B	1.27B	755.57M	-2.92B	974.52M
Investing Cash Flow	-443.31M	-330.63M	-177.00M	-127.15M	-154.19M	-16.27M
Financing Cash Flow	275.09M	727.74M	425.21M	654.04M	3.34B	240.10M

Nu Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NU, the sentiment is Positive. The current price of 16.3 is above the 20-day moving average (MA) of 15.38, above the 50-day MA of 13.86, and above the 200-day MA of 12.39, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 77.35 is Negative, neither overbought nor oversold. The STOCH value of 84.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NU.

Nu Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EWBC	80 Outperform	14.71B	12.73	14.54%	2.20%	5.87%	9.84%
BCS	78 Outperform	72.54B	9.51	8.78%	2.08%	16.06%	64.31%
NU	76 Outperform	$78.54B	34.10	27.88%	―	28.56%	49.10%
NWG	75 Outperform	55.72B	8.91	12.20%	4.61%	10.03%	29.51%
SAN	74 Outperform	150.09B	10.63	12.75%	2.29%	-14.74%	17.03%
ING	73 Outperform	75.90B	11.73	12.70%	4.59%	1.13%	-1.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Nu Holdings Corporate Events

Nu Holdings Announces AGM Results with Strong Shareholder Support

On September 8, 2025, Nu Holdings Ltd. held its annual general meeting where shareholders approved key resolutions. The company’s audited financial statements and annual report for the fiscal year ending December 31, 2024, were ratified with 99.85% of votes in favor. Additionally, the re-election of nine directors was confirmed with 97.09% approval, ensuring continued leadership stability. These outcomes reflect strong shareholder support and are likely to reinforce Nu Holdings’ strategic direction and governance, positively impacting its market position.

Nu Holdings Reports Record Q2 2025 Growth and Earnings

In its Q2 2025 earnings release, Nu Holdings Ltd. reported significant growth across its operations, with revenues reaching a record $3.7 billion, marking a 40% year-over-year increase. The company expanded its customer base to nearly 123 million, with strong engagement reflected in an activity rate above 83%. Nu’s net income for the quarter was $637 million, the highest in its history, demonstrating disciplined execution and sustained revenue growth. The company also reported a 41% year-over-year increase in total deposits, reaching $36.6 billion, and a 40% growth in its total credit portfolio, highlighting its robust financial performance and strategic market positioning in Latin America.

Nu Holdings Reports Strong Financial Performance for Mid-2025

Nu Holdings Ltd. released its unaudited interim condensed consolidated financial statements for the three and six-month periods ending June 30, 2025. The company reported a significant increase in total revenue, reaching $3.67 billion for the three-month period, up from $2.85 billion in the same period last year. This growth was driven by higher interest income and gains on financial instruments. Despite an increase in expenses, including credit loss allowances and general administrative costs, the company achieved a gross profit of $1.55 billion for the quarter. The financial results indicate a strong performance and suggest a positive impact on the company’s market positioning within the digital banking sector.

Nu Holdings Reports Strong Q2 2025 Growth in Digital Banking

Nu Holdings reported its Q2 2025 financial results on August 14, 2025, highlighting significant growth across various segments. The company experienced a notable increase in active credit card and loan customers, with secured loans growing by 158% year-over-year. The expansion of its credit portfolio and customer base underscores Nu Holdings’ strong positioning in the digital banking sector, enhancing its long-term value through engagement, monetization, and scale.

Nu Holdings Submits August 2025 SEC Report

Nu Holdings Ltd., a foreign private issuer, submitted its monthly report for August 2025 to the Securities and Exchange Commission (SEC) as per the requirements of the Securities Exchange Act of 1934. The report, signed by Investor Relations Officer Guilherme Souto, ensures compliance with SEC regulations, reflecting the company’s ongoing commitment to transparency and regulatory adherence.

Nu Holdings Files SEC Report for August 2025

On August 8, 2025, Nu Holdings Ltd. filed a report with the Securities and Exchange Commission as part of its compliance with the Securities Exchange Act of 1934. This filing, signed by Guilherme Souto, the Investor Relations Officer, reflects the company’s ongoing commitment to regulatory transparency and could impact its market perception positively by reinforcing trust among stakeholders.

Nu Holdings Ltd. Files August 2025 Report

Nu Holdings Ltd., a company based in the Cayman Islands, has submitted a report as a foreign private issuer for the month of August 2025, in compliance with the Securities Exchange Act of 1934. The report, signed by Investor Relations Officer Guilherme Souto, indicates ongoing adherence to regulatory requirements, reflecting the company’s commitment to transparency and compliance in its financial operations.

Nu Holdings Ltd. Files SEC Report to Enhance Transparency

On August 8, 2025, Nu Holdings Ltd. submitted a report to the Securities and Exchange Commission as part of its compliance with the Securities Exchange Act of 1934. This filing underscores the company’s commitment to regulatory transparency and could enhance its credibility among investors and stakeholders.