Nu Holdings (NU) AI Stock Analysis

• Market Cap: $83.31B
• Dividend Yield: N/A
• Average Volume (3M): 37.02M
• Price to Earnings (P/E): 33.2
• Beta (1Y): 1.44
• Revenue Growth: 30.94%
• EPS Growth: 40.87%
• Country: US
• Employees: 5,403
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.16
• Shares Outstanding: 3,768,057,900
• 10 Day Avg. Volume: 49,661,547
• 30 Day Avg. Volume: 37,019,518
• PEG Ratio: 0.29
• Price to Book (P/B): 6.49
• Price to Sales (P/S): 4.47
• P/FCF Ratio: 22.32
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 7.63
• Enterprise Value/Gross Profit: 17.73
• Enterprise Value/Ebitda: 28.33
• 1Y Price Target: $17.50
• Price Target Upside: 0.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.6
• Revenue Forecast (FY): $13.31B

• Rating: 79 Outperform
• Price Target: $19.50 ▲(12.13% Upside)

Nu Holdings' strong financial performance and positive earnings call insights are the primary drivers of its high score. While technical indicators show bullish momentum, caution is advised due to potential overvaluation and regulatory challenges.

Positive Factors

Customer Base Expansion

The significant expansion of Nu Holdings' customer base demonstrates its strong market position and scalability, crucial for long-term growth in the digital banking sector.

AI Integration

AI integration enhances operational efficiency and customer experience, providing a competitive edge and supporting sustained growth and innovation.

Revenue Growth

The strong revenue growth and profitability highlight Nu Holdings' effective business model and market demand, underpinning long-term financial health.

Negative Factors

Higher Funding Costs

Rising funding costs in Brazil could pressure margins and profitability, challenging Nu Holdings' cost management and financial performance.

Regulatory Challenges in Mexico

Potential regulatory changes in Mexico may impact revenue streams, necessitating strategic adjustments to maintain profitability.

FGTS Regulatory Impact

Regulatory changes affecting FGTS originations could reduce loan growth, impacting Nu Holdings' revenue and market expansion strategies.

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 impressive revenue and profit growth, effective leverage management, and solid cash flow generation. Minor areas for improvement include operational cash efficiency and maintaining gross profit margins.

Income Statement

Nu Holdings shows strong revenue growth with a TTM increase of 9.25% and consistent profitability, evidenced by a net profit margin of 18.67%. The EBIT and EBITDA margins are healthy at 26.26% and 26.93%, respectively. However, the gross profit margin has slightly decreased from the previous year, indicating potential cost pressures.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.23, indicating prudent leverage management. The return on equity is robust at 27.81%, showcasing effective utilization of shareholder funds. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Nu Holdings demonstrates strong cash flow performance with a 24% growth in free cash flow. The free cash flow to net income ratio is high at 90.75%, indicating efficient cash generation relative to earnings. However, the operating cash flow to net income ratio is relatively low, suggesting room for improvement in operational cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.55B	11.10B	7.67B	4.52B	1.51B	574.99M
Gross Profit	5.83B	5.10B	3.35B	1.57B	664.56M	190.43M
EBITDA	3.65B	2.87B	1.60B	35.27B	-152.82M	-185.75M
Net Income	2.53B	1.97B	1.03B	-364.58M	-164.99M	-171.49M
Balance Sheet
Total Assets	68.36B	49.93B	43.35B	29.93B	19.86B	10.15B
Cash, Cash Equivalents and Short-Term Investments	28.54B	23.15B	22.02B	16.84B	10.69B	2.39B
Total Debt	2.44B	886.53M	1.17B	803.16M	167.92M	189.21M
Total Liabilities	57.81B	42.28B	36.94B	25.04B	15.42B	9.72B
Stockholders Equity	10.55B	7.65B	6.41B	4.89B	4.44B	438.11M
Cash Flow
Free Cash Flow	3.67B	2.22B	1.09B	641.27M	-2.95B	966.53M
Operating Cash Flow	4.04B	2.40B	1.27B	755.57M	-2.92B	974.52M
Investing Cash Flow	-526.08M	-330.63M	-177.00M	-127.15M	-154.19M	-16.27M
Financing Cash Flow	1.33B	727.74M	425.21M	654.04M	3.34B	240.10M

Nu Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 17.39 is above the 20-day moving average (MA) of 16.05, above the 50-day MA of 15.75, and above the 200-day MA of 13.30, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 67.91 is Neutral, neither overbought nor oversold. The STOCH value of 94.24 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
NU	79 Outperform	$83.31B	33.17	27.80%	―	30.94%	40.87%
EWBC	78 Outperform	$14.68B	11.77	15.54%	2.25%	3.87%	14.61%
NWG	78 Outperform	$67.08B	9.49	14.58%	3.85%	7.43%	30.31%
BCS	77 Outperform	$79.06B	10.44	9.44%	1.91%	17.50%	49.25%
ING	72 Outperform	$76.09B	11.64	11.71%	4.50%	2.20%	-0.17%
SAN	72 Outperform	$159.37B	10.69	12.54%	2.04%	-15.34%	16.71%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Nu Holdings Corporate Events

Nu Holdings Reports Strong Financial Growth for September 2025

Nu Holdings Ltd. reported its unaudited interim condensed consolidated financial statements for the period ending September 30, 2025. The company saw a significant increase in total revenue, reaching $11.09 billion for the nine-month period, compared to $8.53 billion in the previous year. Despite higher expenses in financial and transactional services, the company achieved a gross profit of $4.68 billion. The financial review conducted by KPMG concluded that the statements were prepared in accordance with international standards, indicating strong financial health and operational growth.

Nu Holdings Reports Strong Q3 2025 Growth in Digital Banking

Nu Holdings Ltd. announced its Q3 2025 financial results on November 13, 2025, highlighting substantial growth in its customer base and revenue per customer. The company reported a compound annual growth rate (CAGR) of 70% in customers and 73% in revenues since Q3 2021, showcasing its robust expansion in the digital banking sector. The results indicate a strong market position, particularly in Brazil, with Mexico following a similar growth trajectory. This growth underscores Nu Holdings’ effective operational model and its ability to scale efficiently across different markets.

Nu Holdings Reports Record Q3 2025 Financial Results

Nu Holdings Ltd. reported its financial and operating results for the third quarter ending September 30, 2025, showcasing significant growth and expansion. The company achieved record revenues of $4.2 billion, a 39% year-over-year increase on a foreign exchange-neutral basis, and net income of $783 million, highlighting the scalability and profitability of its business model. The customer base expanded to 127 million, with a strong presence in Brazil, Mexico, and Colombia, and the credit portfolio grew by 42% year-over-year to $30.4 billion. Nu Holdings continues to enhance its platform with a focus on integrating AI to redefine banking experiences, aiming to become an AI-first company.

Nu Holdings Submits November 2025 Compliance Report

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

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.