NELNET INC-CL A (NNI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:NNI • US64031N1081
129.21 USD
-1.57 (-1.2%)
Last: Jan 30, 2026, 02:00 PM
We assign a fundamental rating of 5 out of 10 to NNI. NNI was compared to 53 industry peers in the Consumer Finance industry. There are concerns on the financial health of NNI while its profitability can be described as average. NNI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year NNI was profitable.
- In the past year NNI had a positive cash flow from operations.
- NNI had positive earnings in each of the past 5 years.
- Each year in the past 5 years NNI had a positive operating cash flow.
1.2 Ratios
- NNI has a Return On Assets of 3.07%. This is comparable to the rest of the industry: NNI outperforms 58.49% of its industry peers.
- NNI has a Return On Equity (11.66%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 1.87%, NNI is in line with its industry, outperforming 52.83% of the companies in the same industry.
- NNI had an Average Return On Invested Capital over the past 3 years of 1.53%. This is significantly below the industry average of 12.42%.
- The 3 year average ROIC (1.53%) for NNI is below the current ROIC(1.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | 11.66% | ||
| ROIC | 1.87% |
ROA(3y)1.3%
ROA(5y)1.44%
ROE(3y)6.86%
ROE(5y)9.38%
ROIC(3y)1.53%
ROIC(5y)1.39%
1.3 Margins
- NNI has a better Profit Margin (20.79%) than 79.25% of its industry peers.
- NNI's Profit Margin has been stable in the last couple of years.
- NNI has a Operating Margin of 16.50%. This is in the better half of the industry: NNI outperforms 60.38% of its industry peers.
- NNI's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 62.80%, NNI is in the better half of the industry, outperforming 62.26% of the companies in the same industry.
- NNI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.5% | ||
| PM (TTM) | 20.79% | ||
| GM | 62.8% |
OM growth 3Y-28.61%
OM growth 5Y3.31%
PM growth 3Y-31.69%
PM growth 5Y1.26%
GM growth 3Y-11.65%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NNI is destroying value.
- NNI has less shares outstanding than it did 1 year ago.
- NNI has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for NNI has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.74, we must say that NNI is in the distress zone and has some risk of bankruptcy.
- NNI has a Altman-Z score (0.74) which is in line with its industry peers.
- The Debt to FCF ratio of NNI is 20.02, which is on the high side as it means it would take NNI, 20.02 years of fcf income to pay off all of its debts.
- NNI has a Debt to FCF ratio (20.02) which is comparable to the rest of the industry.
- NNI has a Debt/Equity ratio of 2.55. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 2.55, NNI perfoms like the industry average, outperforming 52.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 20.02 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.26
WACC7.3%
2.3 Liquidity
- A Current Ratio of 0.19 indicates that NNI may have some problems paying its short term obligations.
- NNI's Current ratio of 0.19 is on the low side compared to the rest of the industry. NNI is outperformed by 69.81% of its industry peers.
- NNI has a Quick Ratio of 0.19. This is a bad value and indicates that NNI is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.19, NNI is not doing good in the industry: 69.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 170.36% over the past year.
- The Earnings Per Share has been decreasing by -0.61% on average over the past years.
- NNI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.07%.
- The Revenue has been growing slightly by 3.92% on average over the past years.
EPS 1Y (TTM)170.36%
EPS 3Y-19.07%
EPS 5Y-0.61%
EPS Q2Q%4100%
Revenue 1Y (TTM)-21.07%
Revenue growth 3Y13.54%
Revenue growth 5Y3.92%
Sales Q2Q%39.12%
3.2 Future
- NNI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.18% yearly.
- Based on estimates for the next years, NNI will show a small growth in Revenue. The Revenue will grow by 7.59% on average per year.
EPS Next Y44.91%
EPS Next 2Y35.58%
EPS Next 3Y25.18%
EPS Next 5YN/A
Revenue Next Year10.59%
Revenue Next 2Y8.45%
Revenue Next 3Y7.59%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- NNI is valuated correctly with a Price/Earnings ratio of 15.57.
- Based on the Price/Earnings ratio, NNI is valued a bit more expensive than the industry average as 69.81% of the companies are valued more cheaply.
- The average S&P500 Price/Earnings ratio is at 28.39. NNI is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 14.52 indicates a correct valuation of NNI.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NNI indicates a slightly more expensive valuation: NNI is more expensive than 62.26% of the companies listed in the same industry.
- NNI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 14.52 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as NNI.
- NNI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.99 | ||
| EV/EBITDA | 28.43 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of NNI may justify a higher PE ratio.
- NNI's earnings are expected to grow with 25.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y35.58%
EPS Next 3Y25.18%
5. Dividend
5.1 Amount
- NNI has a yearly dividend return of 1.00%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.64, NNI has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, NNI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
- On average, the dividend of NNI grows each year by 8.59%, which is quite nice.
- NNI has been paying a dividend for at least 10 years, so it has a reliable track record.
- NNI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.59%
Div Incr Years10
Div Non Decr Years13
5.3 Sustainability
- NNI pays out 9.70% of its income as dividend. This is a sustainable payout ratio.
- NNI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP9.7%
EPS Next 2Y35.58%
EPS Next 3Y25.18%
NELNET INC-CL A / NNI FAQ
What is the ChartMill fundamental rating of NELNET INC-CL A (NNI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to NNI.
Can you provide the valuation status for NELNET INC-CL A?
ChartMill assigns a valuation rating of 5 / 10 to NELNET INC-CL A (NNI). This can be considered as Fairly Valued.
How profitable is NELNET INC-CL A (NNI) stock?
NELNET INC-CL A (NNI) has a profitability rating of 6 / 10.
What is the expected EPS growth for NELNET INC-CL A (NNI) stock?
The Earnings per Share (EPS) of NELNET INC-CL A (NNI) is expected to grow by 44.91% in the next year.
How sustainable is the dividend of NELNET INC-CL A (NNI) stock?
The dividend rating of NELNET INC-CL A (NNI) is 6 / 10 and the dividend payout ratio is 9.7%.