Analysts say there are issues to tackle to make the company’s operation profitable. The first is precisely the need for the company to show results. Understand in depth the controversies surrounding Nubank, its history on the Stock Exchange and whether it is worth investing, according to the opinion of experts heard by the UOL.
The disclosure of executive salaries, which resulted in controversy on the internet, came to light after the digital bank delivered to the Securities and Exchange Commission (CVM) the reference form for the year 2022, the annual obligation of publicly traded companies.
In 2021 the adjusted profit of the Nubank was $6.6 million, compared to a loss of $26.8 million a year earlier. In the same period, Itaú (ITUB3/ITUB4) recorded net income of R$ 25 billion, and Bradesco (BBDC3/BBDC4), of R$ 26.2 billion.
When we look from the IPO [abertura de capital], the company failed to deliver a representative profit. It made a very small profit and still runs at a loss. Clearly, it’s a growth stock, which suffers when interest rates rise.
Danielle Lopes, partner and analyst at Nord Research
Despite the lower-than-expected numbers, Nubank has a customer base that increased 61.9% in the last year, to 53.9 million.
This has been the company’s strategy so far: increasing the base to seek results later. For Danielle Lopes, partner and analyst at Nord Research, however, the market is already a little more skeptical about the company continuing to grow.
“The company has a very organic reach, little marketing brings a lot of customers into the house in a cheap way. But it cannot monetize, and now credit operations are also increasingly expensive because interest rates are rising”, says the analyst. .
Higher interest rates could hurt the company
With the increase in interest rates in several countries to contain inflation, the cost of credit for companies and individuals becomes more expensive — and this tends to impact the company’s operation.
In Brazil, adjustments to the basic interest rate (Selic) by the Central Bank since April 2021 brought interest rates to 11.75% per year.
The new interest rate scenario also makes investors withdraw assets from variable income and invest in more conservative options, such as fixed income.
An additional component is that investors are starting to review their positions in risky assets, such as listed startups and technology companies.
For the CEO of Box Asset Management, Fabrício Gonçalvez, investors should be very cautious when entering companies that went public on the Stock Exchange.
“It is necessary to understand the business model, evaluate how the organization will make the shareholders profitable and analyze the way in which the executives will direct the business”, says Gonçalvez.
Only after that, according to him, is it possible to weigh the risk and the expected return to make the decision whether or not to include a particular stock in the portfolio.
“The drop in Nubank’s shares has to do with the fall in risk assets, in general, and Brazilian risk assets, which have been performing very poorly since last Friday. [29 de abril]. The month of April was very bad”, says Felipe Miranda, CEO of the Empiricus analysis house.
Nubank debuted on the New York Stock Exchange (NYSE) in December, with a price of US$ 9 per share and a market value of US$ 41.5 billion.
On Tuesday (3), the company’s shares were quoted at US$ 5.47, down 64.5%. Its current market value is $28 billion.
For Miranda, shares and BDRs (Brazilian Depositary Receipts) —that is, receipts for foreign shares that can be traded on the Brazilian stock exchange — were not suffering because of the high remuneration. “Stocks had been falling before,” she says. However, he understands that this is “an additional move”.
The Empiricus analyst recalls that the bank’s lock-up, a kind of quarantine in which IPO investors cannot get rid of the shares, ends on May 17, the day after the company’s results for the 1st quarter of this year were released. . According to Bloomberg, US$ 26 billion in shares can be traded on the market.
Many people who bought before the IPO can now sell the shares, and the expectation is that some of these investors will actually sell their shares.
Felipe Miranda, CEO of empiricus
For now, both Empiricus and Nord Research do not indicate the purchase of Nubank shares and BDRs.
In a statement, Nubank states that the compensation of its eight executives, including CEO David Vélez, is conditioned to the achievement of “ambitious goals” – which should represent “practically 100% of Vélez’s total compensation over the next five years”.
Of the amount of BRL 804.4 million forecast for 2022, BRL 678.9 million (84%) is earmarked for the Contingent Share Award (CSA or Contingent Share Award).
“The CSA sets challenging targets that reflect market capitalization levels that are attractive to our shareholders. In this way, the CSA creates a strong and transparent alignment of long-term interests between Mr. Vélez and our shareholders”, says the company. company, in note.
This remuneration will be made, according to the digital bank, if the average price of the Class A common share — shares that give investors the right to vote and participate in the company’s decisions– hold from $18.69 for 60 straight days. Thus, the CEO will receive a number of shares equivalent to 1% of the company’s share capital.
The same will occur if the average value of the Class A common share remains at or above US$ 35.30 in the period (60 days).
At 1:30 pm (Brasília time) this Wednesday (4), Nubank’s share traded on the American Stock Exchange was at US$ 5.48. Nubank’s BDR (NUBR33) was traded at R$4.68.