NELNET INC-CL A (NNI)
US64031N1081 - Common Stock
We assign a fundamental rating of 3 out of 10 to NNI. NNI was compared to 51 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. While showing a medium growth rate, NNI is valued expensive at the moment.
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.
In the past 5 years NNI has always been profitable.
In the past 5 years NNI always reported a positive cash flow from operatings.
1.2 Ratios
NNI has a Return On Assets (0.88%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 4.10%, NNI is in line with its industry, outperforming 41.18% of the companies in the same industry.
NNI has a Return On Invested Capital (1.35%) 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 6.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 4.1% | ||
| ROIC | 1.35% |
ROA(3y)1.46%
ROA(5y)1.3%
ROE(3y)9.45%
ROE(5y)9.48%
ROIC(3y)1.62%
ROIC(5y)1.21%
1.3 Margins
With a Profit Margin value of 6.34%, NNI perfoms like the industry average, outperforming 43.14% of the companies in the same industry.
NNI's Profit Margin has declined in the last couple of years.
NNI's Operating Margin of 12.58% is in line compared to the rest of the industry. NNI outperforms 54.90% of its industry peers.
NNI's Operating Margin has declined in the last couple of years.
NNI has a Gross Margin (50.05%) which is comparable to the rest of the industry.
NNI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.58% | ||
| PM (TTM) | 6.34% | ||
| GM | 50.05% |
OM growth 3Y-6.77%
OM growth 5Y-9.53%
PM growth 3Y-44.38%
PM growth 5Y-20.3%
GM growth 3Y-10.6%
GM growth 5Y-2.52%
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 about the same amout of shares outstanding than it did 1 year ago.
NNI has less shares outstanding than it did 5 years ago.
NNI has a better debt/assets ratio than last year.
2.2 Solvency
NNI has an Altman-Z score of 0.64. This is a bad value and indicates that NNI is not financially healthy and even has some risk of bankruptcy.
NNI's Altman-Z score of 0.64 is in line compared to the rest of the industry. NNI outperforms 45.10% of its industry peers.
The Debt to FCF ratio of NNI is 25.34, which is on the high side as it means it would take NNI, 25.34 years of fcf income to pay off all of its debts.
NNI has a Debt to FCF ratio (25.34) which is in line with its industry peers.
NNI has a Debt/Equity ratio of 3.44. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NNI (3.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.44 | ||
| Debt/FCF | 25.34 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.19
WACC6.9%
2.3 Liquidity
A Current Ratio of 0.28 indicates that NNI may have some problems paying its short term obligations.
NNI has a Current ratio of 0.28. This is in the lower half of the industry: NNI underperforms 72.55% of its industry peers.
NNI has a Quick Ratio of 0.28. 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 Quick ratio of 0.28 is on the low side compared to the rest of the industry. NNI is outperformed by 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The earnings per share for NNI have decreased strongly by -48.14% in the last year.
The earnings per share for NNI have been decreasing by -14.54% on average. This is quite bad
The Revenue has been growing slightly by 7.18% in the past year.
Measured over the past years, NNI shows a small growth in Revenue. The Revenue has been growing by 4.35% on average per year.
EPS 1Y (TTM)-48.14%
EPS 3Y-35.77%
EPS 5Y-14.54%
EPS growth Q2Q154.93%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y14.43%
Revenue growth 5Y4.35%
Revenue growth Q2Q5.55%
3.2 Future
NNI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.51% yearly.
NNI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.93% yearly.
EPS Next Y107.59%
EPS Next 2Y51.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.31%
Revenue Next 2Y7.93%
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.
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
With a Price/Earnings ratio of 30.48, NNI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NNI is valued a bit more expensive than the industry average as 72.55% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of NNI to the average of the S&P500 Index (28.91), we can say NNI is valued inline with the index average.
The Price/Forward Earnings ratio is 19.05, which indicates a rather expensive current 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 60.78% of the companies listed in the same industry.
NNI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.48 | ||
| Fwd PE | 19.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NNI is on the same level as its industry peers.
NNI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.08 | ||
| EV/EBITDA | 34.99 |
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.
A more expensive valuation may be justified as NNI's earnings are expected to grow with 51.51% in the coming years.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y51.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NNI has a Yearly Dividend Yield of 1.01%.
NNI's Dividend Yield is comparable with the industry average which is at 5.93.
With a Dividend Yield of 1.01, NNI pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
On average, the dividend of NNI grows each year by 9.98%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.98%
Div Incr Years9
Div Non Decr Years10
5.3 Sustainability
NNI pays out 29.60% 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.
DP29.6%
EPS Next 2Y51.51%
EPS Next 3YN/A
NELNET INC-CL A
NYSE:NNI (5/15/2024, 7:04:01 PM)
After market: 110.66 0 (0%)110.66
+0.48 (+0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.48 | ||
| Fwd PE | 19.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 4.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.58% | ||
| PM (TTM) | 6.34% | ||
| GM | 50.05% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-48.14%
EPS 3Y-35.77%
EPS 5Y
EPS growth Q2Q
EPS Next Y107.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.18%
Revenue growth 3Y14.43%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y