Nu Holdings Sees 213% Growth: Is It Time to Invest?

Nu Holdings has experienced remarkable growth with a 213% increase in stock value over the last two years. Despite a recent 30% dip, the company's revenue surged 38% to over $2.9 billion, making it a potential buy for investors looking at fintech opportunities.

Date: 12-01-2025

AI Rating: 7

Revenue Growth
Nu Holdings (NYSE: NU) showcases impressive revenue growth, achieving a 38% year-over-year increase to over $2.9 billion in Q3 2024. This growth surpasses previous periods, with revenue sixfold higher compared to Q3 2021, indicating strong market demand and business performance.

Net Income
The net income for Nu in Q3 reached $553 million, reflecting an 83% year-over-year increase. This considerable rise in net income indicates effective cost management and profitability, which could attract investor confidence.

Profit Margins
Nu's net profit margin stands at 18.8%, showing continuous improvement. The expansion of profit margins is a positive indicator of the company’s financial health and operational efficiency.

The company operates on a digital-only platform, which allows it to expand without the costs associated with physical branches. The substantial increase in revenue per customer combined with decreasing service costs adds to Nu's profitable growth strategy.

With 110 million customers, predominantly in Brazil, the company's growth prospects appear promising, especially given the significant unbanked population in Latin America. The investment in Tyme Group enhances its growth opportunities internationally.

Valuation Considerations
Despite the recent decline in stock price, Nu's shares trade at a forward P/E ratio of 17.9, significantly lower than the Nasdaq-100 average of 26.4. This undervaluation may be an attractive entry point for long-term investors.

Stocks: NU