NELNET INC-CL A (NNI) Stock Fundamental Analysis
NYSE:NNI - New York Stock Exchange, Inc. - US64031N1081 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NNI. NNI was compared to 52 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 priced too expensively while it is growing strongly. Keep and eye on this one!
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.
NNI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.84%, NNI is in line with its industry, outperforming 51.92% of the companies in the same industry.
NNI has a Return On Equity of 7.65%. This is comparable to the rest of the industry: NNI outperforms 44.23% of its industry peers.
The Return On Invested Capital of NNI (1.95%) 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 10.35%.
The 3 year average ROIC (1.53%) for NNI is below the current ROIC(1.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 7.65% | ||
| ROIC | 1.95% |
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's Profit Margin of 10.15% is in line compared to the rest of the industry. NNI outperforms 55.77% of its industry peers.
In the last couple of years the Profit Margin of NNI has remained more or less at the same level.
NNI has a Operating Margin of 14.00%. This is comparable to the rest of the industry: NNI outperforms 57.69% 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 56.72%, NNI is in line with its industry, outperforming 57.69% 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 | 14% | ||
| PM (TTM) | 10.15% | ||
| GM | 56.72% |
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
NNI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, NNI has an improved debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 0.72, NNI is in line with its industry, outperforming 51.92% of the companies in the same industry.
The Debt to FCF ratio of NNI is 18.43, which is on the high side as it means it would take NNI, 18.43 years of fcf income to pay off all of its debts.
NNI's Debt to FCF ratio of 18.43 is in line compared to the rest of the industry. NNI outperforms 40.38% of its industry peers.
NNI has a Debt/Equity ratio of 2.92. This is a high value indicating a heavy dependency on external financing.
NNI has a Debt to Equity ratio of 2.92. This is comparable to the rest of the industry: NNI outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.92 | ||
| Debt/FCF | 18.43 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.26
WACC7.58%
2.3 Liquidity
A Current Ratio of 0.20 indicates that NNI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.20, NNI is doing worse than 75.00% of the companies in the same industry.
A Quick Ratio of 0.20 indicates that NNI may have some problems paying its short term obligations.
NNI has a Quick ratio of 0.20. This is in the lower half of the industry: NNI underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
NNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.73%, which is quite impressive.
The Earnings Per Share has been decreasing by -0.61% on average over the past years.
NNI shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.69%.
NNI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.92% yearly.
EPS 1Y (TTM)45.73%
EPS 3Y-19.07%
EPS 5Y-0.61%
EPS Q2Q%24.86%
Revenue 1Y (TTM)20.69%
Revenue growth 3Y13.54%
Revenue growth 5Y3.92%
Sales Q2Q%3.4%
3.2 Future
The Earnings Per Share is expected to grow by 33.21% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.55% on average over the next years. This is quite good.
EPS Next Y59.62%
EPS Next 2Y33.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.95%
Revenue Next 2Y9.55%
Revenue Next 3YN/A
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 accelerating.
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 21.66 indicates a rather expensive valuation of NNI.
NNI's Price/Earnings ratio is a bit more expensive when compared to the industry. NNI is more expensive than 65.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.52, NNI is valued at the same level.
The Price/Forward Earnings ratio is 13.34, which indicates a correct valuation of NNI.
The rest of the industry has a similar Price/Forward Earnings ratio as NNI.
NNI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.66 | ||
| Fwd PE | 13.34 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.7 | ||
| EV/EBITDA | 26.06 |
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 33.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y33.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, NNI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.37, NNI has a dividend in line with its industry peers.
With a Dividend Yield of 0.98, NNI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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
NNI pays out 15.54% of its income as dividend. This is a sustainable payout ratio.
The dividend of NNI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.54%
EPS Next 2Y33.21%
EPS Next 3YN/A
114.59
+0.7 (+0.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners49.34%
Inst Owner Change-2.64%
Ins Owners37.87%
Ins Owner Change0.22%
Market Cap4.17B
Analysts45
Price Target127.5 (11.27%)
Short Float %2.52%
Short Ratio5.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend1.11
Dividend Growth(5Y)8.59%
DP15.54%
Div Incr Years10
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.87%
Min EPS beat(2)16.48%
Max EPS beat(2)39.26%
EPS beat(4)2
Avg EPS beat(4)-11.87%
Min EPS beat(4)-94.9%
Max EPS beat(4)39.26%
EPS beat(8)3
Avg EPS beat(8)-21.8%
EPS beat(12)5
Avg EPS beat(12)-13.19%
EPS beat(16)8
Avg EPS beat(16)-0.04%
Revenue beat(2)2
Avg Revenue beat(2)9.43%
Min Revenue beat(2)0.33%
Max Revenue beat(2)18.53%
Revenue beat(4)2
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-10.5%
Max Revenue beat(4)18.53%
Revenue beat(8)3
Avg Revenue beat(8)-3.65%
Revenue beat(12)6
Avg Revenue beat(12)9.24%
Revenue beat(16)10
Avg Revenue beat(16)12.86%
PT rev (1m)0%
PT rev (3m)4.55%
EPS NQ rev (1m)18.79%
EPS NQ rev (3m)26.01%
EPS NY rev (1m)16.74%
EPS NY rev (3m)29.62%
Revenue NQ rev (1m)3.95%
Revenue NQ rev (3m)8.51%
Revenue NY rev (1m)2.97%
Revenue NY rev (3m)7.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.66 | ||
| Fwd PE | 13.34 | ||
| P/S | 1.62 | ||
| P/FCF | 7.7 | ||
| P/OCF | 7.68 | ||
| P/B | 1.22 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 26.06 |
EPS(TTM)5.29
EY4.62%
EPS(NY)8.59
Fwd EY7.5%
FCF(TTM)14.89
FCFY12.99%
OCF(TTM)14.91
OCFY13.02%
SpS70.91
BVpS94.07
TBVpS88.77
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 7.65% | ||
| ROCE | 2.89% | ||
| ROIC | 1.95% | ||
| ROICexc | 1.98% | ||
| ROICexgc | 2.04% | ||
| OM | 14% | ||
| PM (TTM) | 10.15% | ||
| GM | 56.72% | ||
| FCFM | 20.99% |
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-Score8
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.92 | ||
| Debt/FCF | 18.43 | ||
| Debt/EBITDA | 20.66 | ||
| Cap/Depr | 0.87% | ||
| Cap/Sales | 0.04% | ||
| Interest Coverage | 0.62 | ||
| Cash Conversion | 112.35% | ||
| Profit Quality | 206.91% | ||
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 | ||
| Altman-Z | 0.72 |
F-Score8
WACC7.58%
ROIC/WACC0.26
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)45.73%
EPS 3Y-19.07%
EPS 5Y-0.61%
EPS Q2Q%24.86%
EPS Next Y59.62%
EPS Next 2Y33.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)20.69%
Revenue growth 3Y13.54%
Revenue growth 5Y3.92%
Sales Q2Q%3.4%
Revenue Next Year13.95%
Revenue Next 2Y9.55%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y36.88%
EBIT growth 3Y-18.94%
EBIT growth 5Y7.36%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.71%
FCF growth 3Y9.73%
FCF growth 5Y25.48%
OCF growth 1Y1.98%
OCF growth 3Y6.75%
OCF growth 5Y17.27%