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Thierry from arvy

CFA, Co-Founder & CIO of arvy, Quality Investing

14 Aug, 20:12Latest

Nu Holdings trades at only 12x forward earnings despite strong growth, expanding profitability and operating leverage across its businesses and products. It costs under $1 to serve a customer, with no branches, paperwork or hidden fees; it reached 130+ million customers in eleven years and runs a 20% efficiency ratio versus 55% for the average bank. Per @JonahLupton, Q2 revenue rose 50% and net income 67%; he puts it near 11.2x next-twelve-month EPS with fair value of $24-28 per share. x.com x.com

24 Apr, 13:56

Nu Holdings is the world's most efficient bank, with a structural cost edge traditional banks cannot copy. Its efficiency ratio is 19.9%, down from 78% in Q4 2021, versus 55% at JPMorgan and 63% at Wells Fargo, because it has no branches or legacy systems; serving a customer costs under $1 a month versus $15-25 at traditional Brazilian banks, against $15 of monthly revenue. With 2025 revenue up 45% and a 33% ROE, about 17x forward earnings is not expensive. x.com x.com x.com x.com x.com

Dividend Talks on YouTube

Long-Term Stock Research on YouTube

11 Aug

Nu Holdings is a buy today because it shows operating leverage. Since 2020, monthly revenue per active customer has risen 382%, from $3.30 to $15.90, while the cost to serve each customer fell from $1.10 to $1.00: more revenue at lower cost. x.com x.com

Noah

Stock Investor & Trader, US Equities

1 Oct

Nu Holdings remains too cheap at about 13x forward earnings, worth buying more. Per @TheRayMyers, over two years customers rose from 105M to 139M, ARPU from $11 to $17 and net income from $1.5B to $3.6B, while the share price slipped from $14 to $13. x.com

Brad Freeman

Equity Researcher, Creator of Stock Market Nerd

13 Aug

Nu Holdings delivered another strong quarter and still has plenty of room to raise revenue per customer. Accounting revenue of $5.51B came in 2.6% ahead of Bloomberg consensus. @two_chump notes Nu now has 139 million customers, 50% more than JPMorgan. x.com x.com x.com x.com

Finance Jack

Equity Research

26 Oct

Nu Holdings' growth under Lula makes today's selloff look absurd. On a TTM basis since Q1 2023, revenue rose 270% and net income went from a $180 million loss to $3.61 billion, or $0.74 EPS; having done so well during his term, it should be fine going forward. x.com x.com x.com

Techquity

Technology Investor, Fundamental Research

16 Jun

Nu Holdings has a structural cost advantage from its mobile-first, branchless model, which strips out traditional banks' complexity and high fees, and its valuation offers a good margin of safety. It also adds South American diversification and exposure to a disruptive model. The case assumes a terminal P/E of 16 and 18% annual EPS growth, though it is a quite sensitive business that calls for care. x.com

Stocker-Man

Long-Term Growth Investor & Swing Trader, Public Investing Journal

7 Jun

Nu Holdings looks mispriced because its fundamentals keep strengthening while sentiment and macro concerns pressure the stock. It has more than 135 million customers after adding about 4 million in Q1, when revenue was $5.3B and net income $871M, with a 29% ROE, an 83% activity rate and an efficiency ratio improved to 17.6%. That disconnect is the reason to add, though it remains a higher-risk position. x.com

John Tinsman

Founder of AOT Invest, Portfolio Manager of AOTG/AOTS ETFs

14 Aug

Nu Holdings' management keeps delivering impressive growth and improving profitability, with net income up 67% year over year, supporting its long-term growth story even though the stock is down 10% year to date. x.com

Ashton Invests

Long-Term Equity Investor, Fundamental Stock Research

1 Oct

Nu Holdings still has a massive runway as Nubank expands deeper across Latin America, having already built one of the region's largest digital banking platforms. x.com

Sam Badawi

Stock Analyst, Creator of Origins of Alpha & Quarterly Conviction

14 Aug

Nubank keeps proving it is not just adding customers but making more money from each one, which is what long-term compounding looks like. Revenue rose 39% year over year to $5.9B, and quarterly net income topped $1B for the first time. x.com

Jonah Lupton

CEO & CIO of FirstWave Capital, Long-Biased Growth

26 Sep

Nu is going global with best-in-class management, and buying Monzo could be a big growth opportunity. Per @PaulBonnet, Nubank is rumored to buy Monzo for about $13B. Monzo's loans are only 9-10% of deposits versus 85-90% at Nu, and its net margin is half Nu's, so Nu could likely grow Monzo's EPS at least 50% faster than its core. Nu trades under 4x revenue and would pay just under 6x for Monzo. The deal would be dilutive, likely 30% cash and 70% stock, but expands Nu's market. x.com x.com x.com … Show more

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