Since I joined the company in November 2022, it has $NU (+1,29%) developed splendidly. Today the position stands at +60%. But that's just the surface.
Let's dive deep into the numbers and the story behind the silent revolution of banking in Latin America.
WHAT'S BEHIND NU? 🏦
Nu is an all-in-one financial app that makes traditional banks look old. The business model is based on a complete financial ecosystem and clever expansion.
📱 The ecosystem:
⚪️ Numbers
& Save: Fee-free accounts & cards
⚪️ Loans: Uncomplicated personal & consumer loans
⚪️ Invest: Stocks, ETFs & cryptos directly in the app
⚪️ Insure: Life and cell phone insurance
🧠 The expansion:
⚪️ NuCel: Own mobile tariff for customers
⚪️ Nu Travel: Travel booking platform with benefits
⚪️ MarketplaceIntegration of e-commerce partners
NU IN FIGURES (Q1 2025) 📊
Nu's true strength is reflected in its key figures. This is where explosive growth meets impressive efficiency - a rare combination.
🟢 Customers: 118.6 million (+19% YoY)
🟢 Revenue per customer (ARPAC): 11.40 $ (rising 📈)
🟢 Cost-to-serve per customer: 0.90 $ (falling 📉)
🟢 Return on equity (ROE): 27% (elite level ✅)
🟢 Efficiency ratio (CIR): 39% (top value for a bank ✅)
OPPORTUNITIES & RISKS
No investment without weighing up the upside and the risks.
THE UPSIDE 🟢
🟢 Conquering Mexico: The customer base there is growing exponentially at +67% per year.
🟢 Cross-selling potential: New products such as loans & insurance are continuously increasing sales per customer.
🟢 Economies of scale: The digital model keeps the costs per new customer extremely low, which drives margins.
THE RISKS 🔴
🔴 High valuation: A price-to-sales ratio (P/S) of ~5x already prices in a lot of future growth. There is little room for error.
🔴 Profitability pressure: High investments in expansion could reduce profits in the short term.
🔴 Regulation & competitionPolitical risks in Latin America and competition from local banks remain present.
CONCLUSION & MY STRATEGY ⚖️
For me, Nu Holdings is not a short-term fintech hype, but a clear attempt to build the financial foundation for the next generation in Latin America. The numbers prove that the execution has been excellent so far.
The investment thesis:
A potential compounder that is growing at over 40% despite its size and is already highly profitable.
My actionBuy & Hold. Hold position.
#etfs
#stockanalysis
#tech
#fintech#nubank
#brasilien
