NAVIENT CORP (NAVI) Stock Fundamental Analysis
NASDAQ:NAVI - Nasdaq - US63938C1080 - Common Stock - Currency: USD
Taking everything into account, NAVI scores 3 out of 10 in our fundamental rating. NAVI was compared to 53 industry peers in the Consumer Finance industry. While NAVI is still in line with the averages on profitability rating, there are concerns on its financial health. NAVI is valued correctly, but it does not seem to be growing. NAVI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NAVI was profitable.
In the past year NAVI had a positive cash flow from operations.
Each year in the past 5 years NAVI has been profitable.
Each year in the past 5 years NAVI had a positive operating cash flow.
1.2 Ratios
NAVI has a worse Return On Assets (0.11%) than 67.92% of its industry peers.
NAVI has a Return On Equity of 2.16%. This is in the lower half of the industry: NAVI underperforms 67.92% of its industry peers.
NAVI's Return On Invested Capital of 0.09% is on the low side compared to the rest of the industry. NAVI is outperformed by 60.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NAVI is significantly below the industry average of 10.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.11% | ||
| ROE | 2.16% | ||
| ROIC | 0.09% |
ROA(3y)0.51%
ROA(5y)0.58%
ROE(3y)11.63%
ROE(5y)15.89%
ROIC(3y)0.44%
ROIC(5y)0.59%
1.3 Margins
NAVI's Profit Margin of 7.65% is in line compared to the rest of the industry. NAVI outperforms 45.28% of its industry peers.
In the last couple of years the Profit Margin of NAVI has declined.
Looking at the Operating Margin, with a value of 8.33%, NAVI is in line with its industry, outperforming 50.94% of the companies in the same industry.
NAVI's Operating Margin has declined in the last couple of years.
NAVI's Gross Margin of 106.83% is amongst the best of the industry. NAVI outperforms 100.00% of its industry peers.
NAVI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.33% | ||
| PM (TTM) | 7.65% | ||
| GM | 106.83% |
OM growth 3Y-38.66%
OM growth 5Y-23.58%
PM growth 3Y-24.9%
PM growth 5Y-14.58%
GM growth 3Y-0.7%
GM growth 5Y-1.38%
2. Health
2.1 Basic Checks
Compared to 1 year ago, NAVI has less shares outstanding
Compared to 5 years ago, NAVI has less shares outstanding
NAVI has a better debt/assets ratio than last year.
2.2 Solvency
NAVI has an Altman-Z score of 0.10. This is a bad value and indicates that NAVI is not financially healthy and even has some risk of bankruptcy.
NAVI has a worse Altman-Z score (0.10) than 66.04% of its industry peers.
NAVI has a debt to FCF ratio of 137.15. This is a negative value and a sign of low solvency as NAVI would need 137.15 years to pay back of all of its debts.
The Debt to FCF ratio of NAVI (137.15) is worse than 66.04% of its industry peers.
NAVI has a Debt/Equity ratio of 18.43. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 18.43, NAVI is not doing good in the industry: 88.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.43 | ||
| Debt/FCF | 137.15 | ||
| Altman-Z | 0.1 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
NAVI has a Current Ratio of 0.48. This is a bad value and indicates that NAVI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of NAVI (0.48) is worse than 62.26% of its industry peers.
A Quick Ratio of 0.48 indicates that NAVI may have some problems paying its short term obligations.
NAVI's Quick ratio of 0.48 is on the low side compared to the rest of the industry. NAVI is outperformed by 62.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.97% over the past year.
The Earnings Per Share has been decreasing by -5.62% on average over the past years.
NAVI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -38.60%.
The Revenue for NAVI have been decreasing by -13.57% on average. This is quite bad
EPS 1Y (TTM)15.97%
EPS 3Y-13.56%
EPS 5Y-5.62%
EPS Q2Q%-27.59%
Revenue 1Y (TTM)-38.6%
Revenue growth 3Y-24.44%
Revenue growth 5Y-13.57%
Sales Q2Q%20%
3.2 Future
NAVI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.32% yearly.
The Revenue is expected to grow by 7.54% on average over the next years.
EPS Next Y-44.38%
EPS Next 2Y-16.73%
EPS Next 3Y-9.32%
EPS Next 5YN/A
Revenue Next Year-3.22%
Revenue Next 2Y-1.39%
Revenue Next 3Y7.54%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NAVI is valuated cheaply with a Price/Earnings ratio of 7.64.
Based on the Price/Earnings ratio, NAVI is valued a bit cheaper than 73.58% of the companies in the same industry.
NAVI is valuated cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.34 indicates a reasonable valuation of NAVI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NAVI is on the same level as its industry peers.
NAVI is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 9.34 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, NAVI is valued a bit cheaper than 67.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.71 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
NAVI's earnings are expected to decrease with -9.32% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.73%
EPS Next 3Y-9.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.06%, NAVI is a good candidate for dividend investing.
NAVI's Dividend Yield is rather good when compared to the industry average which is at 4.14. NAVI pays more dividend than 83.02% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, NAVI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
5.2 History
The dividend of NAVI has a limited annual growth rate of 0.28%.
NAVI has paid a dividend for at least 10 years, which is a reliable track record.
NAVI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.28%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
121.43% of the earnings are spent on dividend by NAVI. This is not a sustainable payout ratio.
The Dividend Rate of NAVI has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP121.43%
EPS Next 2Y-16.73%
EPS Next 3Y-9.32%
NASDAQ:NAVI (8/4/2025, 2:18:15 PM)
12.7609
+0.1 (+0.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners103.17%
Inst Owner Change0.15%
Ins Owners1.91%
Ins Owner Change2%
Market Cap1.29B
Analysts51.43
Price Target14.85 (16.37%)
Short Float %8%
Short Ratio10.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
Yearly Dividend0.65
Dividend Growth(5Y)0.28%
DP121.43%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-91.18%
Min EPS beat(2)-205.47%
Max EPS beat(2)23.1%
EPS beat(4)2
Avg EPS beat(4)64.17%
Min EPS beat(4)-205.47%
Max EPS beat(4)472.75%
EPS beat(8)2
Avg EPS beat(8)14.85%
EPS beat(12)4
Avg EPS beat(12)10.08%
EPS beat(16)7
Avg EPS beat(16)0.24%
Revenue beat(2)1
Avg Revenue beat(2)-5.19%
Min Revenue beat(2)-11.17%
Max Revenue beat(2)0.78%
Revenue beat(4)1
Avg Revenue beat(4)-12.96%
Min Revenue beat(4)-21.76%
Max Revenue beat(4)0.78%
Revenue beat(8)2
Avg Revenue beat(8)-7.26%
Revenue beat(12)6
Avg Revenue beat(12)1.95%
Revenue beat(16)10
Avg Revenue beat(16)15.1%
PT rev (1m)10.08%
PT rev (3m)11.02%
EPS NQ rev (1m)-11.1%
EPS NQ rev (3m)-10.17%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)3.92%
Revenue NQ rev (1m)1.23%
Revenue NQ rev (3m)2.01%
Revenue NY rev (1m)-3.64%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 9.34 | ||
| P/S | 1.76 | ||
| P/FCF | 3.71 | ||
| P/OCF | 3.71 | ||
| P/B | 0.5 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.67
EY13.09%
EPS(NY)1.37
Fwd EY10.7%
FCF(TTM)3.44
FCFY26.96%
OCF(TTM)3.44
OCFY26.96%
SpS7.24
BVpS25.6
TBVpS21.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.11% | ||
| ROE | 2.16% | ||
| ROCE | 0.13% | ||
| ROIC | 0.09% | ||
| ROICexc | 0.09% | ||
| ROICexgc | 0.09% | ||
| OM | 8.33% | ||
| PM (TTM) | 7.65% | ||
| GM | 106.83% | ||
| FCFM | 47.54% |
ROA(3y)0.51%
ROA(5y)0.58%
ROE(3y)11.63%
ROE(5y)15.89%
ROIC(3y)0.44%
ROIC(5y)0.59%
ROICexc(3y)0.44%
ROICexc(5y)0.6%
ROICexgc(3y)0.45%
ROICexgc(5y)0.61%
ROCE(3y)0.64%
ROCE(5y)0.86%
ROICexcg growth 3Y-44.69%
ROICexcg growth 5Y-24.15%
ROICexc growth 3Y-44.69%
ROICexc growth 5Y-24.15%
OM growth 3Y-38.66%
OM growth 5Y-23.58%
PM growth 3Y-24.9%
PM growth 5Y-14.58%
GM growth 3Y-0.7%
GM growth 5Y-1.38%
F-Score6
Asset Turnover0.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.43 | ||
| Debt/FCF | 137.15 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.02 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 621.43% | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 0.1 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)231.39%
Profit Quality(5y)206.33%
High Growth Momentum
Growth
EPS 1Y (TTM)15.97%
EPS 3Y-13.56%
EPS 5Y-5.62%
EPS Q2Q%-27.59%
EPS Next Y-44.38%
EPS Next 2Y-16.73%
EPS Next 3Y-9.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-38.6%
Revenue growth 3Y-24.44%
Revenue growth 5Y-13.57%
Sales Q2Q%20%
Revenue Next Year-3.22%
Revenue Next 2Y-1.39%
Revenue Next 3Y7.54%
Revenue Next 5YN/A
EBIT growth 1Y-75.2%
EBIT growth 3Y-53.65%
EBIT growth 5Y-33.95%
EBIT Next Year-50.41%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-37.75%
FCF growth 3Y-13.21%
FCF growth 5Y-14.74%
OCF growth 1Y-37.75%
OCF growth 3Y-13.21%
OCF growth 5Y-14.74%