NELNET INC-CL A (NNI) Stock Fundamental Analysis
USA - NYSE:NNI - US64031N1081 - Common Stock
128.34 USD
+0.12 (+0.09%)
128.34 USD
0 (0%)
Taking everything into account, NNI scores 4 out of 10 in our fundamental rating. NNI was compared to 55 industry peers in the Consumer Finance industry. While NNI is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
Each year in the past 5 years NNI has 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 has a Return On Equity (9.05%) which is comparable to the rest of the industry.
The Return On Invested Capital of NNI (1.42%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for NNI is significantly below the industry average of 10.97%.
| 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
Looking at the Profit Margin, with a value of 16.11%, NNI is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
NNI's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 12.59%, NNI perfoms like the industry average, outperforming 58.18% of the companies in the same industry.
In the last couple of years the Operating Margin of NNI has grown nicely.
The Gross Margin of NNI (59.07%) is comparable to the rest of the industry.
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
NNI has less shares outstanding than it did 5 years ago.
NNI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that NNI is in the distress zone and 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 in line with its industry peers.
A Debt/Equity ratio of 2.60 is on the high side and indicates that NNI has dependencies on debt financing.
NNI has a Debt to Equity ratio (2.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.6 | ||
| Debt/FCF | 18.71 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.18
WACC7.73%
2.3 Liquidity
NNI has a Current 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.
NNI has a Current ratio of 0.19. This is in the lower half of the industry: NNI underperforms 70.91% of its industry peers.
A Quick Ratio of 0.19 indicates that NNI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.19, NNI is doing worse than 70.91% of the companies in the same industry.
| 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 30.84% over the past year.
The Earnings Per Share has been decreasing by -0.61% on average over the past years.
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
Based on estimates for the next years, NNI will show a very strong growth in Earnings Per Share. The EPS will grow by 35.03% on average per year.
NNI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.07% yearly.
EPS Next Y47.1%
EPS Next 2Y35.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.88%
Revenue Next 2Y8.07%
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
The Price/Earnings ratio is 23.64, which indicates a rather expensive current 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 70.91% 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 26.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.54, which indicates a correct valuation of NNI.
NNI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of NNI to the average of the S&P500 Index (22.50), we can say NNI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.64 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NNI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NNI indicates a somewhat cheap valuation: NNI is cheaper than 61.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.35 | ||
| EV/EBITDA | 33.47 |
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.
NNI's earnings are expected to grow with 35.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y35.03%
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 4.71.
With a Dividend Yield of 0.91, NNI pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
On average, the dividend of NNI grows each year by 8.59%, which is quite nice.
NNI has paid a dividend for at least 10 years, which is 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
12.56% of the earnings are spent on dividend by NNI. This is a low number and sustainable payout ratio.
NNI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12.56%
EPS Next 2Y35.03%
EPS Next 3YN/A
128.34
+0.12 (+0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners49.56%
Inst Owner Change-0.11%
Ins Owners38.76%
Ins Owner Change14.15%
Market Cap4.64B
Revenue(TTM)2.01B
Net Income(TTM)323.48M
Analysts45
Price Target132.6 (3.32%)
Short Float %2.16%
Short Ratio3.95
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)0%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-1.94%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-7.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.64 | ||
| Fwd PE | 14.54 | ||
| P/S | 2.31 | ||
| P/FCF | 9.35 | ||
| P/OCF | 9.46 | ||
| P/B | 1.3 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 33.47 |
EPS(TTM)5.43
EY4.23%
EPS(NY)8.83
Fwd EY6.88%
FCF(TTM)13.72
FCFY10.69%
OCF(TTM)13.56
OCFY10.57%
SpS55.52
BVpS98.84
TBVpS93.55
PEG (NY)0.5
PEG (5Y)N/A
Graham Number109.89
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%
ROICexgc growth 3Y-4.39%
ROICexgc 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
WACC7.73%
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 Y47.1%
EPS Next 2Y35.03%
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 2Y8.07%
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%
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 4 / 10 to NNI.
What is the valuation status of NELNET INC-CL A (NNI) stock?
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 5 / 10.
Can you provide the PE and PB ratios for NNI stock?
The Price/Earnings (PE) ratio for NELNET INC-CL A (NNI) is 23.64 and the Price/Book (PB) ratio is 1.3.
Can you provide the expected EPS growth for NNI stock?
The Earnings per Share (EPS) of NELNET INC-CL A (NNI) is expected to grow by 47.1% in the next year.