NELNET INC-CL A (NNI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NNI - US64031N1081 - Common Stock
127.77 USD
+3.03 (+2.43%)
127.77 USD
0 (0%)
NNI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NNI had positive earnings in the past year.
NNI had a positive operating cash flow in the past year.
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 better Return On Assets (3.07%) than 63.64% of its industry peers.
With a Return On Equity value of 11.66%, NNI perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.87%, NNI is in line with its industry, outperforming 56.36% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NNI is significantly below the industry average of 11.61%.
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 80.00% of its industry peers.
NNI's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 16.50%, NNI is doing good in the industry, outperforming 63.64% of the companies in the same industry.
NNI's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 62.80%, NNI is doing good in the industry, outperforming 61.82% of the companies in the same industry.
In the last couple of years the Gross Margin of NNI has remained more or less at the same level.
| 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
NNI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NNI has less shares outstanding
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 0.73, we must say that NNI is in the distress zone and has some risk of bankruptcy.
NNI has a Altman-Z score (0.73) which is comparable to the rest of the industry.
NNI has a debt to FCF ratio of 20.02. This is a negative value and a sign of low solvency as NNI would need 20.02 years to pay back of all of its debts.
With a Debt to FCF ratio value of 20.02, NNI perfoms like the industry average, outperforming 47.27% of the companies in the same industry.
NNI has a Debt/Equity ratio of 2.55. This is a high value indicating a heavy dependency on external financing.
NNI's Debt to Equity ratio of 2.55 is in line compared to the rest of the industry. NNI outperforms 50.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 20.02 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.24
WACC7.72%
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'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.
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 170.36% over the past year.
Measured over the past years, NNI shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.61% on average per year.
The Revenue for NNI has decreased by -21.07% in the past year. This is quite bad
NNI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.92% yearly.
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
The Earnings Per Share is expected to grow by 35.03% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.07% on average over the next years. This is quite good.
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
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.
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
The Price/Earnings ratio is 15.39, which indicates a correct valuation of NNI.
65.45% of the companies in the same industry are cheaper than NNI, based on the Price/Earnings ratio.
NNI is valuated rather cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.48, the valuation of NNI can be described as correct.
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 60.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NNI to the average of the S&P500 Index (34.46), we can say NNI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 14.48 |
4.2 Price Multiples
NNI's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as NNI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.95 | ||
| EV/EBITDA | 28.25 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NNI's earnings are expected to grow with 35.03% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y35.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.06%, NNI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.07, NNI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, NNI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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 9.70% 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.
DP9.7%
EPS Next 2Y35.03%
EPS Next 3YN/A
127.77
+3.03 (+2.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners49.56%
Inst Owner Change-68.59%
Ins Owners38.76%
Ins Owner Change15.57%
Market Cap4.62B
Revenue(TTM)2.05B
Net Income(TTM)425.89M
Analysts45
Price Target137.7 (7.77%)
Short Float %2.27%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend1.11
Dividend Growth(5Y)8.59%
DP9.7%
Div Incr Years10
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)31.34%
Min EPS beat(2)-28.95%
Max EPS beat(2)91.63%
EPS beat(4)3
Avg EPS beat(4)29.61%
Min EPS beat(4)-28.95%
Max EPS beat(4)91.63%
EPS beat(8)4
Avg EPS beat(8)-7.29%
EPS beat(12)4
Avg EPS beat(12)-16.53%
EPS beat(16)8
Avg EPS beat(16)3.59%
Revenue beat(2)1
Avg Revenue beat(2)4.62%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)13.85%
Revenue beat(4)3
Avg Revenue beat(4)7.02%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)18.53%
Revenue beat(8)4
Avg Revenue beat(8)-1.45%
Revenue beat(12)5
Avg Revenue beat(12)2.4%
Revenue beat(16)9
Avg Revenue beat(16)11.89%
PT rev (1m)3.85%
PT rev (3m)3.85%
EPS NQ rev (1m)-35.6%
EPS NQ rev (3m)-37.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)1%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 14.48 | ||
| P/S | 2.26 | ||
| P/FCF | 9.95 | ||
| P/OCF | 9.92 | ||
| P/B | 1.27 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 28.25 |
EPS(TTM)8.3
EY6.5%
EPS(NY)8.83
Fwd EY6.91%
FCF(TTM)12.84
FCFY10.05%
OCF(TTM)12.88
OCFY10.08%
SpS56.65
BVpS101
TBVpS95.76
PEG (NY)0.33
PEG (5Y)N/A
Graham Number137.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | 11.66% | ||
| ROCE | 2.83% | ||
| ROIC | 1.87% | ||
| ROICexc | 1.91% | ||
| ROICexgc | 1.97% | ||
| OM | 16.5% | ||
| PM (TTM) | 20.79% | ||
| GM | 62.8% | ||
| FCFM | 22.67% |
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 | 2.55 | ||
| Debt/FCF | 20.02 | ||
| Debt/EBITDA | 21.48 | ||
| Cap/Depr | 1.44% | ||
| Cap/Sales | 0.07% | ||
| Interest Coverage | 0.68 | ||
| Cash Conversion | 107.63% | ||
| Profit Quality | 109.08% | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 0.73 |
F-Score7
WACC7.72%
ROIC/WACC0.24
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)170.36%
EPS 3Y-19.07%
EPS 5Y-0.61%
EPS Q2Q%4100%
EPS Next Y47.1%
EPS Next 2Y35.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-21.07%
Revenue growth 3Y13.54%
Revenue growth 5Y3.92%
Sales Q2Q%39.12%
Revenue Next Year10.88%
Revenue Next 2Y8.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.09%
EBIT growth 3Y-18.94%
EBIT growth 5Y7.36%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y48.51%
FCF growth 3Y9.73%
FCF growth 5Y25.48%
OCF growth 1Y22.48%
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 15.39 and the Price/Book (PB) ratio is 1.27.
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.