NELNET INC-CL A (NNI) Fundamental Analysis & Valuation

NYSE:NNI • US64031N1081

Current stock price

127.69 USD
+0.94 (+0.74%)
At close:
127.69 USD
0 (0%)
After Hours:

This NNI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. NNI Profitability Analysis

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 4 of the past 5 years.
  • NNI had a positive operating cash flow in 4 of the past 5 years.
NNI Yearly Net Income VS EBIT VS OCF VS FCFNNI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

1.2 Ratios

  • NNI has a Return On Assets of 3.07%. This is comparable to the rest of the industry: NNI outperforms 55.56% of its industry peers.
  • Looking at the Return On Equity, with a value of 11.66%, NNI is in line with its industry, outperforming 44.44% of the companies in the same industry.
  • NNI has a Return On Invested Capital (1.87%) which 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 12.41%.
  • The 3 year average ROIC (1.53%) for NNI is below the current ROIC(1.87%), indicating increased profibility in the last year.
Industry RankSector 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%
NNI Yearly ROA, ROE, ROICNNI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

  • With a decent Profit Margin value of 20.79%, NNI is doing good in the industry, outperforming 79.63% of the companies in the same industry.
  • In the last couple of years the Profit Margin of NNI has remained more or less at the same level.
  • Looking at the Operating Margin, with a value of 16.50%, NNI is in line with its industry, outperforming 57.41% of the companies in the same industry.
  • In the last couple of years the Operating Margin of NNI has grown nicely.
  • NNI has a better Gross Margin (62.80%) than 61.11% 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 RankSector 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%
NNI Yearly Profit, Operating, Gross MarginsNNI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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1

2. NNI Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NNI is destroying value.
  • NNI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
NNI Yearly Shares OutstandingNNI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
NNI Yearly Total Debt VS Total AssetsNNI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

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.
  • With a Altman-Z score value of 0.73, NNI perfoms like the industry average, outperforming 55.56% 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 has a Debt to FCF ratio (20.02) which is in line with its industry peers.
  • NNI has a Debt/Equity ratio of 2.55. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 2.55, NNI perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.55
Debt/FCF 20.02
Altman-Z 0.73
ROIC/WACC0.27
WACC6.91%
NNI Yearly LT Debt VS Equity VS FCFNNI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

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 68.52% of its industry peers.
  • A Quick Ratio of 0.19 indicates that NNI may have some problems paying its short term obligations.
  • NNI's Quick ratio of 0.19 is on the low side compared to the rest of the industry. NNI is outperformed by 68.52% of its industry peers.
Industry RankSector Rank
Current Ratio 0.19
Quick Ratio 0.19
NNI Yearly Current Assets VS Current LiabilitesNNI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. NNI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 67.98% over the past year.
  • The Earnings Per Share has been decreasing by -3.17% on average over the past years.
EPS 1Y (TTM)67.98%
EPS 3Y-10.13%
EPS 5Y-3.17%
EPS Q2Q%-9.83%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-2.39%

3.2 Future

  • NNI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.07% yearly.
  • Based on estimates for the next years, NNI will show a small growth in Revenue. The Revenue will grow by 6.12% on average per year.
EPS Next Y9.44%
EPS Next 2Y8.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.34%
Revenue Next 2Y6.12%
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.
NNI Yearly Revenue VS EstimatesNNI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B
NNI Yearly EPS VS EstimatesNNI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

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3

4. NNI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 15.71, the valuation of NNI can be described as correct.
  • NNI's Price/Earnings ratio is a bit more expensive when compared to the industry. NNI is more expensive than 64.81% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.79. NNI is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 14.35 indicates a correct valuation of NNI.
  • 61.11% of the companies in the same industry are cheaper than NNI, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 23.80. NNI is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 15.71
Fwd PE 14.35
NNI Price Earnings VS Forward Price EarningsNNI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as NNI.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as NNI.
Industry RankSector Rank
P/FCF 9.86
EV/EBITDA 28.07
NNI Per share dataNNI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • NNI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.66
PEG (5Y)N/A
EPS Next 2Y8.07%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. NNI Dividend Analysis

5.1 Amount

  • NNI has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 3.13, NNI has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.91, NNI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.02%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.59%
Div Incr Years10
Div Non Decr Years13
NNI Yearly Dividends per shareNNI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.7%
EPS Next 2Y8.07%
EPS Next 3YN/A
NNI Yearly Income VS Free CF VS DividendNNI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
NNI Dividend Payout.NNI Dividend Payout, showing the Payout Ratio.NNI Dividend Payout.PayoutRetained Earnings

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NNI Fundamentals: All Metrics, Ratios and Statistics

NELNET INC-CL A

NYSE:NNI (3/19/2026, 4:15:00 PM)

After market: 127.69 0 (0%)

127.69

+0.94 (+0.74%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)02-26
Earnings (Next)05-06
Inst Owners48.42%
Inst Owner Change-1.7%
Ins Owners31.83%
Ins Owner Change1.33%
Market Cap4.58B
Revenue(TTM)N/A
Net Income(TTM)425.89M
Analysts45
Price Target142.8 (11.83%)
Short Float %1.75%
Short Ratio2.63
Dividend
Industry RankSector Rank
Dividend Yield 1.02%
Yearly Dividend1.11
Dividend Growth(5Y)8.59%
DP9.7%
Div Incr Years10
Div Non Decr Years13
Ex-Date02-27
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)0%
PT rev (3m)3.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)34.65%
EPS NY rev (1m)0%
EPS NY rev (3m)6.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 15.71
Fwd PE 14.35
P/S 2.24
P/FCF 9.86
P/OCF 9.83
P/B 1.25
P/tB 1.32
EV/EBITDA 28.07
EPS(TTM)8.13
EY6.37%
EPS(NY)8.9
Fwd EY6.97%
FCF(TTM)12.95
FCFY10.14%
OCF(TTM)12.99
OCFY10.17%
SpS57.12
BVpS101.85
TBVpS96.56
PEG (NY)1.66
PEG (5Y)N/A
Graham Number136.49
Profitability
Industry RankSector 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 RankSector 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
WACC6.91%
ROIC/WACC0.27
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)67.98%
EPS 3Y-10.13%
EPS 5Y-3.17%
EPS Q2Q%-9.83%
EPS Next Y9.44%
EPS Next 2Y8.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-2.39%
Revenue Next Year6.34%
Revenue Next 2Y6.12%
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 Fundamental Analysis FAQ

What is the ChartMill fundamental rating of NELNET INC-CL A (NNI) stock?

ChartMill assigns a fundamental rating of 3 / 10 to NNI.


Can you provide the valuation status for NELNET INC-CL A?

ChartMill assigns a valuation rating of 3 / 10 to NELNET INC-CL A (NNI). This can be considered as Overvalued.


How profitable is NELNET INC-CL A (NNI) stock?

NELNET INC-CL A (NNI) has a profitability rating of 5 / 10.


What is the expected EPS growth for NELNET INC-CL A (NNI) stock?

The Earnings per Share (EPS) of NELNET INC-CL A (NNI) is expected to grow by 9.44% in the next year.


How sustainable is the dividend of NELNET INC-CL A (NNI) stock?

The dividend rating of NELNET INC-CL A (NNI) is 5 / 10 and the dividend payout ratio is 9.7%.