Is Nu Holdings Ltd. (NU) A Good Stock To Buy Now?

Is NU a bully banal to buy? We came crossed a bullish thesis connected Nu Holdings Ltd. connected Patient Capital Fund Newsletter’s Substack by Patient Capital. In this article, we volition summarize the bulls’ thesis connected NU. Nu Holdings Ltd.'s stock was trading astatine $14.02 arsenic of March 26th. NU’s trailing and guardant P/E were 23.85 and 17.76 respectively according to Yahoo Finance.

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Nu Holdings (NU), Latin America’s largest integer bank, has built a ascendant presumption successful Brazil by combining a customer-first attack with highly businesslike operations. Founded successful 2013 by David Vélez, Christina Junqueira, and Edward Wible, Nubank began with a no-fee recognition paper and rapidly expanded to a afloat suite of banking products, including savings accounts, idiosyncratic loans, and investments.

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Today, the slope serves 131 cardinal customers crossed Brazil, Mexico, and Colombia, with 113 cardinal successful Brazil alone, generating $15.8 cardinal successful gross and $2.9 cardinal successful nett income successful FY25. Its recognition portfolio stands astatine $32.7 billion, portion lawsuit deposits full $41.9 billion. Nubank’s competitive borderline lies successful structural outgo advantages crossed lawsuit acquisition, outgo to serve, funding, and hazard management, resulting successful an ratio ratio of 21%, a 30% instrumentality connected equity, and gross per worker 5 times higher than peers.

Brazil’s highly developed fiscal system, coupled with the instant outgo system Pix, has accelerated integer adoption and accrued convenience, yet recognition cards stay captious owed to interest-free installment plans. Nubank captures 25-30% of Brazil’s recognition paper market, with precocious penetration, beardown engagement, and a Net Promoter Score astir 90.

Its in-house cloud-based halfway banking strategy enables scalable maturation astatine a outgo to service of lone $0.8 per progressive customer, astir 85% little than incumbents. Asset prime is prudently managed, with 90+ time NPL sum consistently supra 200%, and risk-adjusted margins stay charismatic contempt elevated defaults.

Looking forward, Nubank’s expansion into Mexico and the U.S. provides a wide maturation runway, leveraging its proven quality to get customers cost-effectively and present superior experiences. With precocious lawsuit engagement, debased marketing spend, and a scalable platform, Nu Holdings is well-positioned to proceed expanding marketplace share, summation profitability, and capitalize connected opportunities successful underbanked regions, making it a compelling concern with important upside potential.