NAVIENT CORP (NAVI) Stock Fundamental Analysis
USA - NASDAQ:NAVI - US63938C1080 - Common Stock
12.6 USD
-0.26 (-2.02%)
12.6 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to NAVI. NAVI was compared to 55 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.
1. Profitability
1.1 Basic Checks
NAVI had positive earnings in the past year.
In the past year NAVI had a positive cash flow from operations.
In the past 5 years NAVI has always been profitable.
NAVI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NAVI (0.07%) is worse than 69.09% of its industry peers.
NAVI has a worse Return On Equity (1.33%) than 69.09% of its industry peers.
With a Return On Invested Capital value of 0.05%, NAVI perfoms like the industry average, outperforming 41.82% of the companies in the same industry.
NAVI had an Average Return On Invested Capital over the past 3 years of 0.44%. This is significantly below the industry average of 10.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.07% | ||
| ROE | 1.33% | ||
| ROIC | 0.05% |
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
With a Profit Margin value of 5.24%, NAVI is not doing good in the industry: 65.45% of the companies in the same industry are doing better.
NAVI's Profit Margin has declined in the last couple of years.
NAVI has a Operating Margin of 4.93%. This is comparable to the rest of the industry: NAVI outperforms 47.27% of its industry peers.
In the last couple of years the Operating Margin of NAVI has declined.
NAVI has a Gross Margin of 107.09%. This is amongst the best in the industry. NAVI outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of NAVI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.93% | ||
| PM (TTM) | 5.24% | ||
| GM | 107.09% |
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
The number of shares outstanding for NAVI has been reduced compared to 1 year ago.
The number of shares outstanding for NAVI has been reduced compared to 5 years ago.
The debt/assets ratio for NAVI has been reduced compared to a year ago.
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 63.64% of its industry peers.
The Debt to FCF ratio of NAVI is 241.52, which is on the high side as it means it would take NAVI, 241.52 years of fcf income to pay off all of its debts.
NAVI has a worse Debt to FCF ratio (241.52) than 60.00% of its industry peers.
A Debt/Equity ratio of 18.37 is on the high side and indicates that NAVI has dependencies on debt financing.
NAVI has a worse Debt to Equity ratio (18.37) than 85.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.37 | ||
| Debt/FCF | 241.52 | ||
| Altman-Z | 0.1 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.50 indicates that NAVI may have some problems paying its short term obligations.
With a Current ratio value of 0.50, NAVI is not doing good in the industry: 61.82% of the companies in the same industry are doing better.
NAVI has a Quick Ratio of 0.50. This is a bad value and indicates that NAVI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.50, NAVI is not doing good in the industry: 61.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
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.
The Revenue for NAVI has decreased by -38.60% in the past year. This is quite bad
Measured over the past years, NAVI shows a very negative growth in Revenue. The Revenue has been decreasing by -13.57% on average per year.
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 -9.01% yearly.
Based on estimates for the next years, NAVI will show a quite strong growth in Revenue. The Revenue will grow by 8.76% on average per year.
EPS Next Y-49.02%
EPS Next 2Y-18%
EPS Next 3Y-9.01%
EPS Next 5YN/A
Revenue Next Year5.42%
Revenue Next 2Y2.46%
Revenue Next 3Y8.76%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.54, the valuation of NAVI can be described as very cheap.
NAVI's Price/Earnings ratio is a bit cheaper when compared to the industry. NAVI is cheaper than 70.91% of the companies in the same industry.
NAVI is valuated cheaply when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.51 indicates a reasonable valuation of NAVI.
The rest of the industry has a similar Price/Forward Earnings ratio as NAVI.
NAVI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 9.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NAVI indicates a somewhat cheap valuation: NAVI is cheaper than 65.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.46 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as NAVI's earnings are expected to decrease with -9.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-18%
EPS Next 3Y-9.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.86%, NAVI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.39, NAVI pays a bit more dividend than its industry peers.
NAVI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.28%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
NAVI pays out 197.06% of its income as dividend. This is not a sustainable payout ratio.
NAVI's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP197.06%
EPS Next 2Y-18%
EPS Next 3Y-9.01%
12.6
-0.26 (-2.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners104.33%
Inst Owner Change0%
Ins Owners1.91%
Ins Owner Change-0.6%
Market Cap1.26B
Analysts50
Price Target14.28 (13.33%)
Short Float %7.54%
Short Ratio8.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
Yearly Dividend0.65
Dividend Growth(5Y)0.28%
DP197.06%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-23.4%
Max EPS beat(2)23.1%
EPS beat(4)2
Avg EPS beat(4)66.75%
Min EPS beat(4)-205.47%
Max EPS beat(4)472.75%
EPS beat(8)2
Avg EPS beat(8)12.8%
EPS beat(12)3
Avg EPS beat(12)6.91%
EPS beat(16)6
Avg EPS beat(16)-1.78%
Revenue beat(2)2
Avg Revenue beat(2)4.35%
Min Revenue beat(2)0.78%
Max Revenue beat(2)7.92%
Revenue beat(4)2
Avg Revenue beat(4)-6.06%
Min Revenue beat(4)-21.76%
Max Revenue beat(4)7.92%
Revenue beat(8)3
Avg Revenue beat(8)-3.55%
Revenue beat(12)6
Avg Revenue beat(12)-1.5%
Revenue beat(16)10
Avg Revenue beat(16)12.07%
PT rev (1m)-2.33%
PT rev (3m)5.88%
EPS NQ rev (1m)-1.61%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.19%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)4.55%
Revenue NY rev (1m)6.05%
Revenue NY rev (3m)4.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 9.51 | ||
| P/S | 1.94 | ||
| P/FCF | 6.46 | ||
| P/OCF | 6.46 | ||
| P/B | 0.49 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.67
EY13.25%
EPS(NY)1.32
Fwd EY10.51%
FCF(TTM)1.95
FCFY15.48%
OCF(TTM)1.95
OCFY15.48%
SpS6.49
BVpS25.64
TBVpS21.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.07% | ||
| ROE | 1.33% | ||
| ROCE | 0.07% | ||
| ROIC | 0.05% | ||
| ROICexc | 0.05% | ||
| ROICexgc | 0.05% | ||
| OM | 4.93% | ||
| PM (TTM) | 5.24% | ||
| GM | 107.09% | ||
| FCFM | 30.05% |
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-Score5
Asset Turnover0.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.37 | ||
| Debt/FCF | 241.52 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.01 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 573.53% | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 0.1 |
F-Score5
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-49.02%
EPS Next 2Y-18%
EPS Next 3Y-9.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-38.6%
Revenue growth 3Y-24.44%
Revenue growth 5Y-13.57%
Sales Q2Q%20%
Revenue Next Year5.42%
Revenue Next 2Y2.46%
Revenue Next 3Y8.76%
Revenue Next 5YN/A
EBIT growth 1Y-84.83%
EBIT growth 3Y-53.65%
EBIT growth 5Y-33.95%
EBIT Next Year-47.56%
EBIT Next 3Y-9.36%
EBIT Next 5YN/A
FCF growth 1Y-62.43%
FCF growth 3Y-13.21%
FCF growth 5Y-14.74%
OCF growth 1Y-62.43%
OCF growth 3Y-13.21%
OCF growth 5Y-14.74%