NELNET INC-CL A (NNI) Stock Fundamental Analysis
NYSE:NNI - New York Stock Exchange, Inc. - US64031N1081 - Common Stock - Currency: USD
NNI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 53 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. NNI is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
Each year in the past 5 years NNI had a positive operating cash flow.
1.2 Ratios
NNI has a Return On Assets (1.84%) which is in line with its industry peers.
NNI has a Return On Equity of 7.65%. This is comparable to the rest of the industry: NNI outperforms 45.28% of its industry peers.
NNI's Return On Invested Capital of 1.95% is in line compared to the rest of the industry. NNI outperforms 50.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NNI is significantly below the industry average of 10.42%.
The last Return On Invested Capital (1.95%) for NNI is above the 3 year average (1.53%), which is a sign of increasing profitability.
| 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 54.72% of its industry peers.
In the last couple of years the Profit Margin of NNI has remained more or less at the same level.
The Operating Margin of NNI (14.00%) is comparable to the rest of the industry.
NNI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 56.72%, NNI perfoms like the industry average, outperforming 58.49% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NNI is destroying value.
Compared to 1 year ago, NNI has less shares outstanding
The number of shares outstanding for NNI has been reduced compared to 5 years ago.
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.
NNI has a Altman-Z score (0.74) which is in line with its industry peers.
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.
The Debt to FCF ratio of NNI (18.43) is comparable to the rest of the industry.
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 (2.92) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.92 | ||
| Debt/FCF | 18.43 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.26
WACC7.61%
2.3 Liquidity
NNI has a Current Ratio of 0.20. 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 0.20 is on the low side compared to the rest of the industry. NNI is outperformed by 71.70% of its industry peers.
NNI has a Quick Ratio of 0.20. 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 0.20, NNI is doing worse than 71.70% of the companies in the same industry.
| 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.
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 has grown by 20.69% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 3.92% on average over the past years.
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
Based on estimates for the next years, NNI will show a very strong growth in Earnings Per Share. The EPS will grow by 33.17% on average per year.
Based on estimates for the next years, NNI will show a quite strong growth in Revenue. The Revenue will grow by 9.55% on average per year.
EPS Next Y58.2%
EPS Next 2Y33.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.73%
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
NNI is valuated rather expensively with a Price/Earnings ratio of 23.73.
Based on the Price/Earnings ratio, NNI is valued a bit more expensive than the industry average as 71.70% of the companies are valued more cheaply.
NNI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.62, NNI is valued correctly.
Based on the Price/Forward Earnings ratio, NNI is valued a bit more expensive than 60.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.28, NNI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.73 | ||
| Fwd PE | 14.62 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NNI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NNI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.43 | ||
| EV/EBITDA | 26.88 |
4.3 Compensation for Growth
NNI's 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 33.17% in the coming years.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y33.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NNI has a yearly dividend return of 0.90%, which is pretty low.
NNI's Dividend Yield is comparable with the industry average which is at 4.16.
Compared to an average S&P500 Dividend Yield of 2.40, NNI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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 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
5.3 Sustainability
15.54% of the earnings are spent on dividend by NNI. This is a low number and sustainable payout ratio.
NNI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.54%
EPS Next 2Y33.17%
EPS Next 3YN/A
NYSE:NNI (8/6/2025, 1:07:05 PM)
125.54
+0.76 (+0.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners49.39%
Inst Owner Change-2.16%
Ins Owners33.9%
Ins Owner Change13.96%
Market Cap4.56B
Analysts45
Price Target132.6 (5.62%)
Short Float %1.98%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)4%
PT rev (3m)13.04%
EPS NQ rev (1m)3.41%
EPS NQ rev (3m)22.84%
EPS NY rev (1m)-0.89%
EPS NY rev (3m)15.71%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)4.77%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)2.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.73 | ||
| Fwd PE | 14.62 | ||
| P/S | 1.77 | ||
| P/FCF | 8.43 | ||
| P/OCF | 8.42 | ||
| P/B | 1.33 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 26.88 |
EPS(TTM)5.29
EY4.21%
EPS(NY)8.58
Fwd EY6.84%
FCF(TTM)14.89
FCFY11.86%
OCF(TTM)14.91
OCFY11.88%
SpS70.91
BVpS94.07
TBVpS88.77
PEG (NY)0.41
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 | 0.74 |
F-Score8
WACC7.61%
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 Y58.2%
EPS Next 2Y33.17%
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 Year13.73%
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%