NUNU
US • —
$13.85
P/E
21.36
PEG
0.45
FCF Yield
—
Rev Growth YoY
+45.4% YoY
Gross Margin
41.0%
Health Score
4/10
D/E Ratio
4.17
Confidence
LOW
Business Snapshot
Nu Holdings (NU) operates as a digital banking and financial services platform focused on the Latin American market, primarily generating revenue through credit cards, digital accounts, lending, and payment processing. It is a challenger bank that has rapidly gained market share in Brazil, Mexico, and Colombia by offering a low-cost, mobile-first alternative to traditional brick-and-mortar banks. While a market cap figure is not available in this data set, the company's strong growth profile positions it as a significant disruptor in the region. The defining characteristic of Nu is its ability to leverage a fully digital operating model to achieve rapid customer acquisition and higher margins than many traditional incumbents.
Financial Health
The company reports a gross margin of 41.0% and a net margin of 18.2%, indicating a healthy business model capable of converting a meaningful portion of revenue into profit. However, the balance sheet shows significant leverage, with a debt-to-equity ratio of 4.17x, which is stretched and limits financial flexibility...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 4.17x indicates a highly leveraged capital structure, and a current ratio of 0.2x presents an acute liquidity risk.
- EARNINGS QUALITY — The company only beat earnings estimates in 2 of the last 4 quarters, providing mixed evidence on management's guidance credibility.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER SELLING — Insiders have executed 2 sells against 0 buys over the last 90 days, a net-selling signal that often warrants caution....
The company reports a gross margin of 41.0% and a net margin of 18.2%, indicating a healthy business model capable of converting a meaningful portion of revenue into profit. However, the balance sheet shows significant leverage, with a debt-to-equity ratio of 4.17x, which is stretched and limits financial flexibility. Liquidity appears extremely constrained, as the current ratio of 0.2x suggests the company may struggle to cover short-term liabilities with its short-term assets. Free cash flow data is unavailable, making it impossible to assess whether the company is self-funding its growth or reliant on external financing. Given the high debt and low liquidity, an investor must consider the elevated risk of dilution or capital raises to support the company's expansion.
- DEBT / LIQUIDITY — Debt/equity of 4.17x indicates a highly leveraged capital structure, and a current ratio of 0.2x presents an acute liquidity risk. - EARNINGS QUALITY — The company only beat earnings estimates in 2 of the last 4 quarters, providing mixed evidence on management's guidance credibility. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER SELLING — Insiders have executed 2 sells against 0 buys over the last 90 days, a net-selling signal that often warrants caution.
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