NELNET INC-CL A (NNI) Stock Fundamental Analysis
USA - NYSE:NNI - US64031N1081 - Common Stock
129.66 USD
-1.74 (-1.32%)
129.66 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NNI. NNI was compared to 55 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.
NNI had a positive operating cash flow in the past year.
In the past 5 years NNI has always been profitable.
Each year in the past 5 years NNI had a positive operating cash flow.
1.2 Ratios
NNI has a Return On Assets of 2.36%. This is comparable to the rest of the industry: NNI outperforms 54.55% of its industry peers.
NNI's Return On Equity of 9.05% is in line compared to the rest of the industry. NNI outperforms 49.09% of its industry peers.
NNI has a Return On Invested Capital (1.42%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NNI is significantly below the industry average of 10.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 9.05% | ||
| ROIC | 1.42% |
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
With a decent Profit Margin value of 16.11%, NNI is doing good in the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Profit Margin of NNI has remained more or less at the same level.
NNI's Operating Margin of 12.59% is in line compared to the rest of the industry. NNI outperforms 58.18% of its industry peers.
In the last couple of years the Operating Margin of NNI has grown nicely.
NNI has a Gross Margin (59.07%) which is in line with its industry peers.
NNI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.59% | ||
| PM (TTM) | 16.11% | ||
| GM | 59.07% |
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.
Compared to 1 year ago, NNI has less shares outstanding
The number of shares outstanding for NNI has been reduced compared to 5 years ago.
The debt/assets ratio for NNI has been reduced compared to a year ago.
2.2 Solvency
NNI has an Altman-Z score of 0.72. This is a bad value and indicates that NNI is not financially healthy and even has some risk of bankruptcy.
NNI has a Altman-Z score (0.72) which is in line with its industry peers.
The Debt to FCF ratio of NNI is 18.71, which is on the high side as it means it would take NNI, 18.71 years of fcf income to pay off all of its debts.
NNI has a Debt to FCF ratio (18.71) which is comparable to the rest of the industry.
NNI has a Debt/Equity ratio of 2.60. This is a high value indicating a heavy dependency on external financing.
NNI has a Debt to Equity ratio (2.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.6 | ||
| Debt/FCF | 18.71 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.18
WACC7.77%
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 70.91% 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: 70.91% 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
NNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.84%, which is quite impressive.
NNI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.61% yearly.
Looking at the last year, NNI shows a very negative growth in Revenue. The Revenue has decreased by -24.43% in the last year.
NNI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.92% yearly.
EPS 1Y (TTM)30.84%
EPS 3Y-19.07%
EPS 5Y-0.61%
EPS Q2Q%11.38%
Revenue 1Y (TTM)-24.43%
Revenue growth 3Y13.54%
Revenue growth 5Y3.92%
Sales Q2Q%12.52%
3.2 Future
NNI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.96% yearly.
The Revenue is expected to grow by 7.84% on average over the next years.
EPS Next Y48.16%
EPS Next 2Y33.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.88%
Revenue Next 2Y7.84%
Revenue Next 3YN/A
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.
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
A Price/Earnings ratio of 23.88 indicates a rather expensive valuation of NNI.
Compared to the rest of the industry, the Price/Earnings ratio of NNI indicates a slightly more expensive valuation: NNI is more expensive than 72.73% of the companies listed in the same industry.
NNI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.93, which indicates a correct valuation of NNI.
NNI's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, NNI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 14.93 |
4.2 Price Multiples
NNI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, NNI is valued a bit cheaper than the industry average as 61.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.45 | ||
| EV/EBITDA | 33.6 |
4.3 Compensation for Growth
NNI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NNI's earnings are expected to grow with 33.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y33.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NNI has a yearly dividend return of 0.91%, which is pretty low.
NNI's Dividend Yield is comparable with the industry average which is at 4.39.
Compared to an average S&P500 Dividend Yield of 2.44, NNI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
The dividend of NNI is nicely growing with an annual growth rate of 8.59%!
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 12.56% 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.
DP12.56%
EPS Next 2Y33.96%
EPS Next 3YN/A
129.66
-1.74 (-1.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners49.56%
Inst Owner Change0%
Ins Owners38.76%
Ins Owner Change14.12%
Market Cap4.69B
Analysts45
Price Target132.6 (2.27%)
Short Float %2.27%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend1.11
Dividend Growth(5Y)8.59%
DP12.56%
Div Incr Years10
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.23%
Min EPS beat(2)-28.95%
Max EPS beat(2)16.48%
EPS beat(4)2
Avg EPS beat(4)-17.03%
Min EPS beat(4)-94.9%
Max EPS beat(4)39.26%
EPS beat(8)3
Avg EPS beat(8)-21.07%
EPS beat(12)4
Avg EPS beat(12)-19.33%
EPS beat(16)7
Avg EPS beat(16)-3.9%
Revenue beat(2)1
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)0.33%
Revenue beat(4)2
Avg Revenue beat(4)0.94%
Min Revenue beat(4)-10.5%
Max Revenue beat(4)18.53%
Revenue beat(8)3
Avg Revenue beat(8)-3.44%
Revenue beat(12)5
Avg Revenue beat(12)5.89%
Revenue beat(16)9
Avg Revenue beat(16)11.85%
PT rev (1m)0%
PT rev (3m)4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 14.93 | ||
| P/S | 2.34 | ||
| P/FCF | 9.45 | ||
| P/OCF | 9.56 | ||
| P/B | 1.31 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 33.6 |
EPS(TTM)5.43
EY4.19%
EPS(NY)8.69
Fwd EY6.7%
FCF(TTM)13.72
FCFY10.58%
OCF(TTM)13.56
OCFY10.46%
SpS55.52
BVpS98.84
TBVpS93.55
PEG (NY)0.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 9.05% | ||
| ROCE | 2.13% | ||
| ROIC | 1.42% | ||
| ROICexc | 1.44% | ||
| ROICexgc | 1.49% | ||
| OM | 12.59% | ||
| PM (TTM) | 16.11% | ||
| GM | 59.07% | ||
| FCFM | 24.72% |
ROA(3y)1.3%
ROA(5y)1.44%
ROE(3y)6.86%
ROE(5y)9.38%
ROIC(3y)1.53%
ROIC(5y)1.39%
ROICexc(3y)1.55%
ROICexc(5y)1.4%
ROICexgc(3y)1.58%
ROICexgc(5y)1.43%
ROCE(3y)2.18%
ROCE(5y)1.95%
ROICexcg growth 3Y-4.39%
ROICexcg growth 5Y20.55%
ROICexc growth 3Y-4.81%
ROICexc growth 5Y20.27%
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%
F-Score7
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.6 | ||
| Debt/FCF | 18.71 | ||
| Debt/EBITDA | 25.22 | ||
| Cap/Depr | 5.09% | ||
| Cap/Sales | 0.29% | ||
| Interest Coverage | 0.47 | ||
| Cash Conversion | 133.24% | ||
| Profit Quality | 153.45% | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 0.72 |
F-Score7
WACC7.77%
ROIC/WACC0.18
Cap/Depr(3y)33.47%
Cap/Depr(5y)40.42%
Cap/Sales(3y)2.5%
Cap/Sales(5y)3.94%
Profit Quality(3y)306.36%
Profit Quality(5y)214.66%
High Growth Momentum
Growth
EPS 1Y (TTM)30.84%
EPS 3Y-19.07%
EPS 5Y-0.61%
EPS Q2Q%11.38%
EPS Next Y48.16%
EPS Next 2Y33.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-24.43%
Revenue growth 3Y13.54%
Revenue growth 5Y3.92%
Sales Q2Q%12.52%
Revenue Next Year10.88%
Revenue Next 2Y7.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-33.46%
EBIT growth 3Y-18.94%
EBIT growth 5Y7.36%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y47.33%
FCF growth 3Y9.73%
FCF growth 5Y25.48%
OCF growth 1Y22.81%
OCF growth 3Y6.75%
OCF growth 5Y17.27%