Nu Holdings Ltd. Class A Ordinary Shares (NU)

FairStock Score: 79/100 — HIGH CONVICTION

Key Financials

Strengths

• High return on equity of 30.3% demonstrating efficient capital deployment
• Healthy net profit margin of 12.8% showing consistent profitability
• Revenue growth of 48.7% demonstrates strong top-line momentum
• FairStock composite score of 71/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Trades significantly above Graham Number ($6) with negative 163% margin of safety—limited downside protection
• Altman Z-Score of 0.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Nu Holdings Ltd. Class A Ordinary Shares is a large-cap financial services company valued at $70.3 billion. The business generates $7.0 billion in annual revenue with a 12.8% net margin. From a quality standpoint, Nu shows distressed Altman Z-Score of 0.8 warrants caution and strong 30% ROE. On valuation, the stock is reasonably priced at 21.0x earnings, with trades far above its Graham Number ($6) with no margin of safety. Growth dynamics show revenue growing at 48.7% and profit growth of 61.5%. Our composite FairStock Score of 71/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Nu's 49% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer