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Nu Holdings (NU) Stock Analysis

This is a peer-relative look at Nu Holdings (NU): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Banks peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Nu Holdings (NU)
Profile ItemNU
NameNu Holdings Ltd. Class A Ordinary Shares
Country/RegionBrazil
GICS SectorFinancials
GICS Industry GroupBanks
GICS IndustryBanks
GICS Sub-IndustryDiversified Banks
Market Capitalization58.11 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateDecember 9, 2021
Security TypeCommon Stock

Price Performance

Cumulative Growth

NU
GSPC
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Nu Holdings (NU) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Nu Holdings (NU) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Nu Holdings (NU) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Nu Holdings (NU) metric values compared with Banks industry-group medians
MetricCurrent stock: NUIndustry group median
Total Return (1Y)-22.46%30.28%
Total Return (3Y, Annualized)14.21%26.57%
Total Return (5Y, Annualized)--9.43%

Risk Profile

Drawdown History

NU
GSPC
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Nu Holdings (NU) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Nu Holdings (NU) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Nu Holdings (NU) metric values compared with Banks industry-group medians
MetricCurrent stock: NUIndustry group median
Volatility (1Y, Annualized)46.14%24.34%
Beta (5Y)0.940.72
Max Drawdown (5Y)-72.07%-43.36%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. NU is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Nu Holdings (NU) metric values compared with Banks industry-group medians
MetricCurrent stock: NUIndustry group median
Sharpe Ratio (1Y)-0.581.08
Sortino Ratio (1Y)-0.781.61

Profitability

ROE (TTM)

Nu Holdings (NU) posts ROE of 31.63%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

NU

Banks industry group

31.63%

Group distribution
NU
31.63%
Max
19.84%
Q3
13.67%
Median
11.49%
Q1
9.50%
Min
3.64%
Largest peers
NU
31.63%
JPM
18.01%
RY
16.21%
HSBC
14.22%
WFC
12.91%
BAC
10.73%
MUFG
9.46%
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Where Nu Holdings (NU) stands on ROE within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Nu Holdings (NU) keeps 42.73% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

NU

Banks industry group

42.73%

Group distribution
Max
47.19%
NU
42.73%
Q3
35.25%
Median
31.21%
Q1
27.11%
Min
14.93%
Largest peers
NU
42.73%
HSBC
41.16%
JPM
34.59%
RY
33.87%
BAC
28.06%
WFC
27.64%
MUFG
27.45%
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Where Nu Holdings (NU) stands on net margin within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

operating margin is set aside for Nu Holdings (NU) in Banks: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.

Profitability Metrics

Nu Holdings (NU) metric values compared with Banks industry-group medians
MetricCurrent stock: NUIndustry group median
ROE (TTM)31.63%11.49%
ROA (TTM)4.96%1.24%
Net Margin (TTM)42.73%31.21%
Operating Margin (TTM)----
Gross Margin (TTM)----

Growth

Revenue Growth

Nu Holdings (NU) grew revenue 28.51%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

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Nu Holdings (NU): Revenue Growth across different time periods, set against Banks industry-group medians.

EPS Growth

Nu Holdings (NU) grew earnings per share 44.92%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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Nu Holdings (NU): EPS Growth across different time periods, set against Banks industry-group medians.

Growth Metrics

Nu Holdings (NU) metric values compared with Banks industry-group medians
MetricCurrent stock: NUIndustry group median
Revenue Growth (YoY)28.51%11.23%
Revenue Growth (3Y CAGR)52.93%6.33%
EPS Growth (YoY)44.92%16.14%
EPS Growth (3Y CAGR)--3.15%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for Nu Holdings (NU) in Banks: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for Nu Holdings (NU) in Banks: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

Nu Holdings (NU) metric values compared with Banks industry-group medians
MetricCurrent stock: NUIndustry group median
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Nu Holdings (NU) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

NU

Banks industry group

0.00%

Group distribution
Max
5.79%
Q3
3.18%
Median
2.39%
Q1
1.20%
NU
0.00%
Min
0.00%
Largest peers
MUFG
406.81%
RY
3.23%
BAC
2.33%
WFC
2.19%
JPM
1.82%
HSBC
0.86%
NU
0.00%
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Where Nu Holdings (NU) stands on dividend yield within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Nu Holdings (NU) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

NU

Banks industry group

0.00%

Group distribution
Max
70.75%
Q3
41.28%
Median
29.26%
Q1
18.98%
NU
0.00%
Min
0.00%
Largest peers
HSBC
53.57%
RY
41.49%
MUFG
34.74%
BAC
27.62%
WFC
26.09%
JPM
25.80%
NU
0.00%
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Where Nu Holdings (NU) stands on payout ratio within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Nu Holdings (NU) metric values compared with Banks industry-group medians
MetricCurrent stock: NUIndustry group median
Dividend Yield (TTM)0.00%2.39%
Dividend Payout Ratio (TTM)0.00%29.26%

Valuation

P/E Ratio (TTM)

Nu Holdings (NU) trades at P/E ratio of 16.48, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

NU

Banks industry group

16.48

Group distribution
Max
18.16
NU
16.48
Q3
13.75
Median
11.81
Q1
10.64
Min
6.49
Largest peers
RY
17.58
NU
16.48
JPM
14.03
MUFG
13.71
WFC
11.84
BAC
11.79
HSBC
11.38
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Where Nu Holdings (NU) stands on P/E ratio within its Banks peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

P/S ratio is not assessed for Nu Holdings (NU) in Banks: the revenue line is driven by spread economics rather than conventional product or service sales, so book value or earnings usually carry more weight.

P/B Ratio (MRQ)

Nu Holdings (NU) trades at 4.39 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

NU

Banks industry group

4.39

Group distribution
NU
4.39
Max
2.28
Q3
1.58
Median
1.32
Q1
1.10
Min
0.59
Largest peers
HSBC
6.87
NU
4.39
RY
2.92
JPM
2.53
MUFG
1.64
WFC
1.59
BAC
1.26
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Where Nu Holdings (NU) stands on P/B ratio within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Nu Holdings (NU) metric values compared with Banks industry-group medians
MetricCurrent stock: NUIndustry group median
P/E Ratio (TTM)16.4811.81
P/S Ratio (TTM)----
P/B Ratio (MRQ)4.391.32
Free Cash Flow Yield (TTM)----