From Financial Modeling Prep: 2025-03-14 07:00:05

Nu Holdings Ltd. (NYSE:NU) is a key player in digital banking in Latin America, competing with companies like STNE, SOFI, GRAB, AFRM, and TOST. NU’s ROIC is 4.55% with a WACC of 13.56%, leading to a ratio of 0.34, indicating it outperforms most peers in generating returns lower than its cost of capital.

STNE has a ROIC of 1.67% and a WACC of 13.97%, resulting in a ratio of 0.12, showing it is relatively more efficient in generating returns compared to its cost of capital than NU.

SOFI, GRAB, and AFRM have negative ROIC to WACC ratios, with SOFI at -0.01, GRAB at -0.37, and AFRM at -0.19, indicating challenges in generating enough returns to cover their cost of capital.

TOST has a ratio of 0.08, lower than NU and STNE, showing it generates returns above its cost of capital but less efficiently. NU stands out for its commendable performance in ROIC to WACC ratio among its peers.



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