1. Analyst review
The following video showed the comparison between Stoneco (STNE;US), NU Holding (NU:US) and SOFI Technology (SOFI:US). All of them are good stocks. Should you buy those now or later? Nobody knows.
Video link: https://youtu.be/heCDRwDpGgQ?si=2uaq0GAEuVgr4YcI
* 2024-12-12 stock prices
STNE: $9.08 USD
NU: $12.02 USD
SOFI: $15.71 USD
2. Yahoo finance information
Description:
Nu Holdings Ltd. provides digital banking
platform in Brazil, Mexico, Colombia, Cayman Islands, Germany, Argentina, the United
States, and Uruguay. It offers spending solutions comprising Nu credit and
prepaid card, a digitally enabled card that acts as a credit and a prepaid
card; Ultraviolet credit and prepaid card, a premium metal credit card for
affluent customers; mobile payment solutions for NuAccount customers to make
and receive transfers, pay bills, and make everyday purchases through their
mobile phones; and Nu Shopping, an integrated mall that enables customers to
purchase goods and services from various ecommerce retailers. The company also
provides savings solutions, such as Nu Personal Accounts, a digital account
solution for personal financial activities; Nu business prepaid and credit
card; and Nu business accounts for entrepreneur customers and their businesses.
In addition, it offers investing solutions, including Money Boxes for
goal-based investing; Nucoin, a proprietary utility token for its loyalty
program; NuInvest, which provides equity, fixed-income, stock options, ETF
products, and multimarket funds; and NuCrypto, a solution for buying and
selling cryptocurrencies through the Nu app. Further, the company provides
borrowing solutions comprising Personal unsecured and secured loans; Pix
financing that enables credit card and digital account customers to make free
and instant peer-to-peer transfers; Boleto financing, which enables credit card
and digital account customers to make payments using their credit line;
purchase financing; and NuPay to make online purchases and pay for services
through Nubank app. Additionally, it offers protection solutions, such as
NuInsurance protection solutions, including life, mobile, auto, home, and
financial protection insurance policies. The company was founded in 2013 and is
headquartered in São Paulo, Brazil.
Video reviewing NU business:
https://youtu.be/CrrxK8Mvh0g?si=Td7SURGgjONRsW2Y-
--------------------------------------
Description:
StoneCo Ltd. provides financial technology
and software solutions to merchants and integrated partners to conduct
electronic commerce across in-store, online, and mobile channels in Brazil. It
distributes its solutions, principally through proprietary Stone Hubs, which
offer hyper-local sales and services; and sells solutions to brick-and-mortar
and digital merchants through sales team. The company served
small-and-medium-sized businesses; and marketplaces, e-commerce platforms, and
integrated software vendors. StoneCo Ltd. was founded in 2000 and is
headquartered in George Town, the Cayman Islands.
---------------------------------
Description:
SoFi Technologies, Inc. provides various
financial services in the United States, Latin America, and Canada. It operates
through three segments: Lending, Technology Platform, and Financial Services.
The company offers lending and financial services and products that allows its
members to borrow, save, spend, invest, and protect money. It offers personal
loans, student loans, home loans, and related services. The company also
operates Galileo, a technology platform that offers services to financial and
non-financial institution; and Technisys, a cloud-native digital and core banking
platform with financial services customers. In addition, it provides SoFi Money
offers checking and savings accounts, debit cards, and cash management
products; and SoFi Invest, a mobile-first investment platform that provides
access to trading and advisory solutions, such as investing and robo-advisory.
Further, the company offers SoFi Credit Card that provides cash backs on every
purchase; Sofi Relay, a personal finance management product that allows to
track all of their financial accounts comprising credit score and spending
behaviors; SoFi Protect, which offers insurance product; SoFi Travel, an
application that manages travel search and booking experience; SoFi At Work
provides financial benefits to employees, including student loan payments made
on their employees' behalf; Lantern Credit, a financial services marketplace
platform for seeking alternative products and provide product comparisons; and
other lending as a service that offers pre-qualified borrower referrals and
sells loans to third-party partner. The company was founded in 2011 and is
based in San Francisco, California.
---------------------
3. Estimation as of 2024-12-13
3.1StoneCo, STNE:US
a. Price estimation
Current price: $8.99 USD
Yahoo’s 1-yr target: $14.58 USD
Morningstar’s fair value: $20.66 USD
Refinitiv target: $17.25 USD (H $21.24 USD –
M $17.88 USD – L $6.93 USD) with consensus rating BUY.
TipRanks ratings: $14.50 USD with Hold
from 2 BUY, 1 HOLD, and 1 SELL
b. Statistics
Valuation Measures
|
Current |
9/30/2024 |
6/30/2024 |
3/31/2024 |
12/31/2023 |
9/30/2023 |
|
|
Market Cap |
2.71B |
3.34B |
3.70B |
5.13B |
5.66B |
3.34B |
|
Enterprise Value |
2.39B |
2.87B |
3.02B |
3.83B |
4.51B |
2.28B |
|
Trailing P/E |
8.38 |
10.32 |
12.64 |
17.50 |
27.87 |
21.75 |
|
Forward P/E |
7.28 |
7.58 |
9.08 |
12.11 |
16.58 |
10.78 |
|
PEG Ratio (5yr expected) |
-- |
-- |
-- |
-- |
-- |
-- |
|
Price/Sales |
1.33 |
1.59 |
1.78 |
2.33 |
2.53 |
1.71 |
|
Price/Book |
1.04 |
1.20 |
1.35 |
1.75 |
1.92 |
1.23 |
|
Enterprise Value/Revenue |
1.13 |
1.29 |
1.41 |
1.68 |
2.02 |
1.12 |
|
Enterprise Value/EBITDA |
3.18 |
3.84 |
4.44 |
2.79 |
3.93 |
2.14 |
3.2NU Holding, NU:US
a. Price estimation
Current price: $11.94 USD
Yahoo’s 1-yr target: $15.64 USD
Morningstar’s fair value: $9.94 USD
Refinitiv target: $15.19 USD (H $19 USD – M $15.55
USD – L $7.70 USD) with consensus rating HOLD.
TipRanks ratings: $17.38 USD with Moderate
Buy from 5 BUY, 1 HOLD, and 1 SELL
b. Statistics
Valuation
Measures
|
Current |
9/30/2024 |
6/30/2024 |
3/31/2024 |
12/31/2023 |
9/30/2023 |
|
|
Market Cap |
58.93B |
65.37B |
61.63B |
56.86B |
39.61B |
34.38B |
|
Enterprise Value |
-- |
-- |
-- |
-- |
-- |
-- |
|
Trailing P/E |
32.89 |
43.49 |
49.54 |
56.25 |
111.96 |
525.36 |
|
Forward P/E |
20.28 |
23.04 |
29.94 |
27.40 |
24.81 |
22.08 |
|
PEG Ratio (5yr expected) |
-- |
-- |
-- |
-- |
-- |
-- |
|
Price/Sales |
7.46 |
9.19 |
9.66 |
10.29 |
8.16 |
8.23 |
|
Price/Book |
7.54 |
9.44 |
9.07 |
8.90 |
6.74 |
6.11 |
|
Enterprise Value/Revenue |
7.26 |
9.04 |
9.69 |
10.30 |
8.30 |
8.28 |
|
Enterprise Value/EBITDA |
-- |
-- |
-- |
-- |
-- |
-- |
3.3 SOFI Technologies, SOFI:US
a. Price estimation
Current price: $16.27 USD
Yahoo’s 1-yr target: $11.00 USD
Morningstar’s fair value: $14.00 USD
Refinitiv target: $11.31 USD (H $19.00 USD –
M $11.00 USD – L $5.00 USD) with consensus rating HOLD.
TipRanks ratings: $11.46 USD with Hold
from 5 BUY, 5 HOLD, and 3 SELL
b. Statistics
Valuation
Measures
|
Current |
9/30/2024 |
6/30/2024 |
3/31/2024 |
12/31/2023 |
9/30/2023 |
|
|
Market Cap |
17.30B |
8.52B |
6.99B |
7.71B |
9.54B |
7.59B |
|
Enterprise Value |
-- |
-- |
-- |
-- |
-- |
-- |
|
Trailing P/E |
132.50 |
-- |
-- |
-- |
-- |
-- |
|
Forward P/E |
79.37 |
32.79 |
73.53 |
104.17 |
181.82 |
769.23 |
|
PEG Ratio (5yr expected) |
-- |
-- |
-- |
-- |
-- |
-- |
|
Price/Sales |
6.73 |
3.38 |
2.90 |
3.27 |
4.74 |
4.00 |
|
Price/Book |
2.82 |
1.44 |
1.21 |
1.47 |
1.92 |
1.46 |
|
Enterprise Value/Revenue |
8.28 |
5.05 |
4.64 |
6.35 |
8.26 |
7.85 |
|
Enterprise Value/EBITDA |
-- |
-- |
-- |
-- |
-- |
-- |
Digital
banking is the digitization of banking services and processes, allowing
customers to access their accounts and perform banking functions online.
Customers can use digital banking through mobile apps, websites, and other
digital platforms.
Digital
banking allows customers to: Pay bills, Transfer money, Make direct deposits,
Send money to friends and family, and Add cards to digital wallets.
Some
examples of digital banking platforms include:
·
nCino Cloud Banking Platform
·
Finacle Digital Engagement Suite
·
NETinfo Digital Banking Platform
·
Appway Digital Banking
·
Backbase Engagement Banking Platform
·
Cyberbank Digital
·
Digital Banking Software Hub
·
Five Degrees Matrix
Canadians
can use digital banking services offered by traditional banks or go with a
digital-first bank.
* Description
source from the Internet.
In recent days, analyst sentiment toward StoneCo has turned increasingly positive, fueled by upward revisions in earnings estimates and a strong Zacks Rank, with the company also trading at a relatively low price-to-book ratio compared to peers.
ReplyDeleteThis wave of upgrades highlights renewed confidence in StoneCo’s earnings trajectory, prompting value-focused investors to take particular interest in its perceived potential for sustained growth.
To be a StoneCo shareholder today, you’d need to believe in the accelerating shift to digital payments among Brazil’s small businesses, and StoneCo’s ability to win market share in financial services amid intensifying competition and evolving macro conditions. The recent surge in analyst optimism, driven by higher earnings estimates and a low price-to-book ratio, does strengthen the near-term outlook but does not materially change the biggest short-term catalyst, StoneCo’s execution on revenue and profit growth, or the main risk, which remains its reliance on payment and financial services after divesting core software assets.
Among the latest developments, StoneCo’s August announcement raising 2025 earnings guidance stands out, with management now projecting a 32% EPS increase for the year, up from earlier forecasts. This directly strengthens the earnings growth catalyst for the stock, aligning with improved consensus estimates and may be part of what’s fueling analysts’ renewed optimism.
StoneCo's narrative projects R$17.4 billion revenue and R$5.0 billion earnings by 2028. This requires 8.2% yearly revenue growth and a R$6.3 billion increase in earnings from R$-1.3 billion today.
source - https://finance.yahoo.com/news/stoneco-stne-wave-analyst-upgrades-140011709.html
- SoFi stands out in the crowded digital-bank sector due to its broad array of services and tools.
ReplyDeleteSoFi likes to call itself the only one-stop shop for digital money management. It sees itself as differentiated from the large pack of neo-banks because it offers a broad array of services, and that model resonates with an upwardly mobile class of younger consumers who want to engage with financial management from their smartphones.
Growth has been impressive. Adjusted net revenue increased 44% year over year in the second quarter, an acceleration. Management attributes the faster increase to an upward spiral that starts with an easy-to-use platform that attracts new clients; a complete assortment of services that generates higher engagement; and more money plowed back into the business to upgrade, add new tools, and become even more attractive.
It's also a low-cost model that breeds loyalty. There are no physical branches, and customers typically start out with one product, which means a relatively low acquisition cost. But as each customer signs up for more products, they come with a high lifetime value.
- Nu has many growth drivers, including adding new customers and entering new markets, and the opportunity is wide open.
Nu is taking banking to a new level in its home country of Brazil, as well as its newer markets of Mexico and Colombia. Its founders were frustrated by the barriers to banking services for the mass market, and Nu's all-digital platform provides access to the financial system for every type of customer.
Its low-fee, user-friendly model appeals to these customers, who were previously locked out of the system, but it's also catching on with affluent consumers who are dissatisfied with the stodgy incumbent banks.
That's leading to consistently outstanding results. Revenue increased 40% year over year in the second quarter (on a currency neutral basis), and it added 4.1 million customers in the quarter and 18 million in the trailing 12 months, a 17% increase. As an all-digital player, it has low costs, and profitability has been soaring; second-quarter net income increased 42% to $637 million.
Even in Brazil, where it already has 60% of the adult population as customers, it's adding new members at a rapid pace. It's also finding new ways to monetize them, cross-selling and upselling new products and services to users who are still getting started in engaging with the financial system.
It has many growth drivers, from adding new customers to monetizing existing ones, as well as entering new markets and adding new features and tools to the app. Nu has an incredible future, and now is a great time to buy.
Source: https://finance.yahoo.com/news/best-growth-stocks-buy-100-083000413.html