Since February 2026, Nubank has been in a holding pattern, posting a small return of 1.2% while floating around $15.16. The stock also fell short of the S&P 500’s 11.7% gain during that period.
Is now the time to buy NU? Find out in our full research report, it’s free.
Why Is NU a Good Business?
With well over one hundred million customers across Brazil, Mexico, and Colombia through its viral member-get-member referral program, Nubank (NYSE:NU) is a digital banking platform that offers financial services including spending, saving, investing, borrowing, and protection products to millions of customers across Latin America.
1. Skyrocketing Revenue Shows Strong Momentum
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
Thankfully, Nubank’s 88.5% annualized revenue growth over the last five years was incredible. Its growth beat the average financials company and shows its offerings resonate with customers.
2. Outstanding Long-Term EPS Growth
Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions.
Nubank’s full-year EPS flipped from negative to positive over the last four years. This is a good sign and shows it’s at an inflection point.
3. Market-Beating ROE Showcases Attractive Growth Opportunities
Return on equity, or ROE, quantifies financial firm profitability relative to shareholder equity — an essential capital source for these institutions. Over extended periods, superior ROE performance drives faster shareholder wealth compounding through reinvestment, share repurchases, and dividend growth.
Over the last five years, Nubank has averaged an ROE of 14%, healthy for a company operating in a sector where the average shakes out around 10% and those putting up 25%+ are greatly admired. This shows Nubank has a decent competitive moat.
Final Judgment
These are just a few reasons why we think Nubank is one of the best financials companies out there. With its shares trailing the market in recent months, the stock trades at 16.2× forward P/E (or $15.16 per share). Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
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