NELNET INC-CL A (NNI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NNI - US64031N1081 - Common Stock
132.99 USD
-0.13 (-0.1%)
132.99 USD
0 (0%)
Overall NNI gets a fundamental rating of 5 out of 10. We evaluated NNI against 55 industry peers in the Consumer Finance industry. NNI has a medium profitability rating, but doesn't score so well on its financial health evaluation. NNI has a correct valuation and a medium 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.
NNI had positive earnings in each of the past 5 years.
In the past 5 years NNI always reported a positive cash flow from operatings.
1.2 Ratios
NNI's Return On Assets of 3.07% is fine compared to the rest of the industry. NNI outperforms 63.64% of its industry peers.
NNI has a Return On Equity (11.66%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 1.87%, NNI perfoms like the industry average, outperforming 56.36% of the companies in the same industry.
NNI had an Average Return On Invested Capital over the past 3 years of 1.53%. This is significantly below the industry average of 12.59%.
The last Return On Invested Capital (1.87%) for NNI is above the 3 year average (1.53%), which is a sign of increasing profitability.
| 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.
NNI has a Operating Margin of 16.50%. This is in the better half of the industry: NNI outperforms 63.64% of its industry peers.
NNI's Operating Margin has improved in the last couple of years.
NNI's Gross Margin of 62.80% is fine compared to the rest of the industry. NNI outperforms 61.82% of its industry peers.
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.
NNI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NNI has less shares outstanding
The debt/assets ratio for NNI has been reduced compared to a year ago.
2.2 Solvency
NNI has an Altman-Z score of 0.74. This is a bad value and indicates that NNI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.74, NNI perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
The Debt to FCF ratio of NNI is 20.02, which is on the high side as it means it would take NNI, 20.02 years of fcf income to pay off all of its debts.
NNI's Debt to FCF ratio of 20.02 is in line compared to the rest of the industry. NNI outperforms 49.09% of its industry peers.
A Debt/Equity ratio of 2.55 is on the high side and indicates that NNI has dependencies on debt financing.
NNI has a Debt to Equity ratio of 2.55. This is comparable 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 | 0.74 |
ROIC/WACC0.24
WACC7.83%
2.3 Liquidity
A Current Ratio of 0.19 indicates that NNI may have some problems paying its short term obligations.
The Current ratio of NNI (0.19) is worse than 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.
NNI has a Quick ratio of 0.19. This is in the lower half of the industry: NNI underperforms 70.91% of its industry peers.
| 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.
Looking at the last year, NNI shows a very negative growth in Revenue. The Revenue has decreased by -21.07% in the last year.
The Revenue has been growing slightly by 3.92% on average over the past years.
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 35.54% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.41% on average over the next years. This is quite good.
EPS Next Y36.18%
EPS Next 2Y35.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.59%
Revenue Next 2Y8.41%
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 16.02 indicates a correct 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 65.45% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NNI to the average of the S&P500 Index (26.54), we can say NNI is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.96, 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 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 14.96 |
4.2 Price Multiples
NNI's Enterprise Value to EBITDA is on the same level as the industry average.
NNI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.29 | ||
| EV/EBITDA | 28.61 |
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.
The decent profitability rating of NNI may justify a higher PE ratio.
A more expensive valuation may be justified as NNI's earnings are expected to grow with 35.54% in the coming years.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y35.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NNI has a yearly dividend return of 0.99%, which is pretty low.
Compared to an average industry Dividend Yield of 2.99, NNI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.96, NNI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
The dividend of NNI is nicely growing with an annual growth rate of 8.59%!
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 9.70% 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.
DP9.7%
EPS Next 2Y35.54%
EPS Next 3YN/A
132.99
-0.13 (-0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners50.61%
Inst Owner Change-0.69%
Ins Owners32.09%
Ins Owner Change16.64%
Market Cap4.78B
Revenue(TTM)2.05B
Net Income(TTM)425.89M
Analysts45
Price Target137.7 (3.54%)
Short Float %1.87%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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)-7.42%
EPS NY rev (3m)-8.08%
Revenue NQ rev (1m)1%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 14.96 | ||
| P/S | 2.33 | ||
| P/FCF | 10.29 | ||
| P/OCF | 10.26 | ||
| P/B | 1.31 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 28.61 |
EPS(TTM)8.3
EY6.24%
EPS(NY)8.89
Fwd EY6.69%
FCF(TTM)12.93
FCFY9.72%
OCF(TTM)12.97
OCFY9.75%
SpS57.02
BVpS101.68
TBVpS96.4
PEG (NY)0.44
PEG (5Y)N/A
Graham Number137.8
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 | 0.74 |
F-Score7
WACC7.83%
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 Y36.18%
EPS Next 2Y35.54%
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 Year10.59%
Revenue Next 2Y8.41%
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 5 / 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 6 / 10.
Can you provide the PE and PB ratios for NNI stock?
The Price/Earnings (PE) ratio for NELNET INC-CL A (NNI) is 16.02 and the Price/Book (PB) ratio is 1.31.
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 36.18% in the next year.