The market has a wild ride so far in 2025, and the S&P 500 briefly correction territory Last week before going up. For new investors, this could be a frightening period. But experienced investors know that not only are for the course, but there is a silver lining: you can find excellent actions at great prices.
Nu Holdings (Nyse: naked) The market underperform in the past year, up less than 1% while the S&P 500 is up 10%. However, he begins to bounce back. Is now the time to buy?
NU provides digital and financial banking services in Brazil, Mexico and Colombia. He has dug a niche by opening in a region with significant obstacles to banking customers, and members are attracted by the ease of use of naked. It brings in coherent solid quarterly growth, and the regions where it operates still have little digital financial access, which gives it a healthy track.
During the fourth quarter of 2024, revenues increased by 50% from one year on the other neutral currency and net profit increased from $ 360.9 million to $ 552.6 million. The cost to serve has remained stable in the quarter in the quarter at $ 0.80 per customer, which was a drop compared to $ 0.90 in the previous year.
Naked was originally created to meet the needs of a mass population that could not access the highly regulated and costly banking system in Brazil, but it makes anyone looking for a better banking experience. Although it already has 58% of the adult population of Brazil as customers, it continues to add 1 million new members monthly, and 61% of its monthly assets use naked as the main bank account. Naked is now the third bank in Brazil in terms of members, but there is so much more growth to capture in Brazil. For example, Ultravioleta customers, its wealthy consumption service, increased by 132% from one year to the next, but the number is still low to 688,000.
Nu’s just has a modest presence in Mexico and Colombia, where he was launched after Brazil and he still has no complete operations. It has deployed a high -speed savings account on these two markets which attracts new members, and growth is faster there than in Brazil. It finished 2024 with 10 million customers in Mexico, an increase of 91% from one year to the next, or 12% of the adult population. Below, there are many other adjacent countries that naked can enter that have no optimal fintech solutions.
Naked is a warren Buffett stockEven if this does not quite correspond to the classic buffett mold, because it is a young growth group. He likes banking actions, but there is something else about naked that Buffett has mentioned several times that is crucial in a large company: a high equity yield (ROE). The low -cost model of nude allows high profits, and the nude Roe was 28% in 2024, placing it in the higher level of financial institutions in the world.
