TLDR
- Nu Holdings trades below $15 with a $65 billion market cap, serving 119 million customers across Brazil, Mexico, and Colombia
- The company has captured 59% of Brazil’s adult population as customers and doubled its customer base in three years
- Nu generates $2.15 billion in net income with a 30% return on equity, showing strong profitability for a growing bank
- Revenue grew 19% year-over-year with average revenue per customer at $11.20 monthly, well below legacy banks’ $40+ average
- The stock trades at a forward P/E of 23.5 with analysts forecasting 36% annual earnings growth through 2027
Nu Holdings has built a digital banking empire in Latin America while its stock remains surprisingly affordable. The fintech company trades near $13.21, well below the $15 threshold that has caught investor attention.
The numbers tell a growth story that’s hard to ignore. Nu serves 119 million customers across three countries, with Brazil representing the bulk of its user base. The company now counts 59% of Brazil’s adult population as customers.
I want to own more stocks that grow like this.
> Nearly 60% of all adults in Brazil are $NU customers
> LatAm market expansion
> Strong overlap with stablecoin opportunities pic.twitter.com/aC4Ly6vog9— darran (@darran0x) June 26, 2025
This customer acquisition happened fast. Nu essentially doubled its customer base over the past three years. The company started from zero in Brazil back in 2013 and now processes what could hit $10 billion in annual revenue this year.
But Nu isn’t just growing – it’s making money doing it. The bank generated $2.15 billion in net income over the last 12 months. That translates to a return on equity of nearly 30%, which puts most traditional banks to shame.
Revenue Growth Potential Remains Untapped
The revenue per customer story reveals Nu’s true potential. Current average monthly revenue per active customer sits at $11.20. Traditional banks in the region pull in over $40 per customer monthly.
This gap isn’t a weakness – it’s opportunity. Nu’s management believes they’ve only captured 5% of their total addressable market in Brazil. Early customers already generate much higher revenue per user than newer accounts.
Nu keeps adding new services to drive that revenue higher. The company recently launched private payroll loans in Brazil. It also offers travel booking through NuTravel and mobile phone service via NuCel.
Mexico represents Nu’s next big play. The company serves 11 million customers in a country of 130 million people. Nu just received its official banking license there, unlocking full lending and banking capabilities.
Mexican revenue currently trails at under $700 million annually. Some analysts expect this could grow to $10 billion as Nu scales up operations and adds customers.
Financial Performance Drives Valuation Case
Nu’s earnings jumped 47% year-over-year in the first quarter. Revenue growth hit 19% in the same period. Analysts project earnings will grow at a 36% annual rate through 2027.
The stock trades at a forward price-to-earnings ratio of 23.5. That might seem high for a bank, but few banks grow this fast while maintaining profitability.
Nu operates in developing economies, which brings both opportunity and risk. Brazil’s economy depends heavily on commodity exports, creating potential volatility. Political instability and currency fluctuations add another layer of uncertainty.
The company has navigated these challenges well so far. Earnings continue climbing despite regional economic pressures.
Colombian Market Adds Third Growth Vector
Nu’s Colombian operations remain smaller but show promise. The company entered this market as its third country expansion. Management hints at plans for Argentina, Chile, and Uruguay next.
Colombia’s economy lags behind Brazil and Mexico, but the population of 50 million represents another growth opportunity. Nu’s playbook of disrupting legacy banks with better digital experiences could work here too.
The combined population of Mexico and Colombia totals 185 million people. That’s 13 times larger than Nu’s current customer count in both markets combined.
Nu’s next earnings report drops on August 14. The company trades at $13.21 with a market cap of $64 billion as of June 27, 2025.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
