Nu Holdings Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nu Holdings Ltd.

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Why is Nu Holdings Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 8.72%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Healthy long term growth as Net Sales has grown by an annual rate of 92.61% and Operating profit at 0.00%

The company has declared Positive results for the last 9 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 6,427.37 MM
NET SALES(Q) Highest at USD 3,366.86 MM
OPERATING PROFIT(Q) Highest at USD 23.07 MM

With ROE of 24.98%, it has a fair valuation with a 6.80 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 37.19%, its profits have risen by 69.7% ; the PEG ratio of the company is 0.4

Consistent Returns over the last 3 years

Along with generating 37.19% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Nu Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Nu Holdings Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nu Holdings Ltd.

-5.25%

0.94

45.17%

S&P 500

22.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

85.98%

EBIT Growth (5y)

0.00%

EBIT to Interest (avg)

Debt to EBITDA (avg)

327.15

Net Debt to Equity (avg)

2.17

Sales to Capital Employed (avg)

0.29

Tax Ratio

28.59%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

82.88%

ROCE (avg)

ROE (avg)

8.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.85

EV to EBIT

EV to EBITDA

949.63

EV to Capital Employed

2.43

EV to Sales

6.45

PEG Ratio

0.54

Dividend Yield

ROCE (Latest)

ROE (Latest)

25.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

27What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 8,251.7 MM

ROCE(HY)

Highest at 30.04%

NET SALES(Q)

Highest at USD 4,621.9 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

OPERATING PROFIT(Q)

Highest at USD 34.36 MM

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 0.74 %

NET PROFIT(Q)

At USD 872.06 MM has Grown at 56.51%

-5What is not working for the Company

INTEREST(HY)

At USD 241.65 MM has Grown at 95.48%

Here's what is working for Nu Holdings Ltd.

Operating Cash Flow

Highest at USD 8,251.7 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 4,621.9 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Net Sales

At USD 4,621.9 MM has Grown at 56.14%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Operating Profit

Highest at USD 34.36 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 0.74 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

At USD 872.06 MM has Grown at 56.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 34.36 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Nu Holdings Ltd.

Interest

At USD 241.65 MM has Grown at 95.48%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)