NELNET INC-CL A (NNI) Stock Fundamental Analysis
USA - NYSE:NNI - US64031N1081 - Common Stock
123.28 USD
-1.49 (-1.19%)
123.28 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NNI. NNI was compared to 54 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year NNI was profitable.
In the past year NNI had a positive cash flow from operations.
Each year in the past 5 years NNI has 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 of 2.36%. This is comparable to the rest of the industry: NNI outperforms 53.70% of its industry peers.
Looking at the Return On Equity, with a value of 9.05%, NNI is in line with its industry, outperforming 48.15% of the companies in the same industry.
With a Return On Invested Capital value of 1.42%, NNI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NNI is significantly below the industry average of 11.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 9.05% | ||
| ROIC | 1.42% |
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
The Profit Margin of NNI (16.11%) is better than 72.22% of its industry peers.
NNI's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 12.59%, NNI perfoms like the industry average, 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 Gross Margin (59.07%) which is comparable to the rest of the 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 | 12.59% | ||
| PM (TTM) | 16.11% | ||
| GM | 59.07% |
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.
The number of shares outstanding for NNI has been reduced compared to 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
Based on the Altman-Z score of 0.71, we must say that NNI is in the distress zone and has some risk of bankruptcy.
NNI's Altman-Z score of 0.71 is in line compared to the rest of the industry. NNI outperforms 51.85% of its industry peers.
The Debt to FCF ratio of NNI is 18.71, which is on the high side as it means it would take NNI, 18.71 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 18.71, NNI perfoms like the industry average, outperforming 46.30% of the companies in the same industry.
NNI has a Debt/Equity ratio of 2.60. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.60, NNI is in line with its industry, outperforming 51.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.6 | ||
| Debt/FCF | 18.71 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.19
WACC7.63%
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.
Looking at the Current ratio, with a value of 0.19, NNI is doing worse than 72.22% of the companies in the same industry.
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 worse Quick ratio (0.19) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
NNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.84%, which is quite impressive.
The Earnings Per Share has been decreasing by -0.61% on average over the past years.
The Revenue for NNI has decreased by -24.43% in the past year. This is quite bad
The Revenue has been growing slightly by 3.92% on average over the past years.
EPS 1Y (TTM)30.84%
EPS 3Y-19.07%
EPS 5Y-0.61%
EPS Q2Q%11.38%
Revenue 1Y (TTM)-24.43%
Revenue growth 3Y13.54%
Revenue growth 5Y3.92%
Sales Q2Q%12.52%
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 33.96% on average per year.
Based on estimates for the next years, NNI will show a small growth in Revenue. The Revenue will grow by 7.84% on average per year.
EPS Next Y48.16%
EPS Next 2Y33.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.88%
Revenue Next 2Y7.84%
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 22.70 indicates a rather expensive valuation of NNI.
Based on the Price/Earnings ratio, NNI is valued a bit more expensive than the industry average as 70.37% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of NNI to the average of the S&P500 Index (27.30), we can say NNI is valued inline with the index average.
NNI is valuated correctly with a Price/Forward Earnings ratio of 14.19.
NNI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of NNI to the average of the S&P500 Index (22.73), we can say NNI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.7 | ||
| Fwd PE | 14.19 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as NNI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.98 | ||
| EV/EBITDA | 32.97 |
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 33.96% in the coming years.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y33.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NNI has a yearly dividend return of 0.96%, which is pretty low.
NNI's Dividend Yield is comparable with the industry average which is at 4.46.
Compared to an average S&P500 Dividend Yield of 2.38, NNI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
5.3 Sustainability
12.56% of the earnings are spent on dividend by NNI. This is a low number and sustainable payout ratio.
The dividend of NNI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.56%
EPS Next 2Y33.96%
EPS Next 3YN/A
123.28
-1.49 (-1.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners48.95%
Inst Owner Change-0.98%
Ins Owners38.55%
Ins Owner Change14.12%
Market Cap4.46B
Analysts45
Price Target132.6 (7.56%)
Short Float %2.25%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend1.11
Dividend Growth(5Y)8.59%
DP12.56%
Div Incr Years10
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.23%
Min EPS beat(2)-28.95%
Max EPS beat(2)16.48%
EPS beat(4)2
Avg EPS beat(4)-17.03%
Min EPS beat(4)-94.9%
Max EPS beat(4)39.26%
EPS beat(8)3
Avg EPS beat(8)-21.07%
EPS beat(12)4
Avg EPS beat(12)-19.33%
EPS beat(16)7
Avg EPS beat(16)-3.9%
Revenue beat(2)1
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)0.33%
Revenue beat(4)2
Avg Revenue beat(4)0.94%
Min Revenue beat(4)-10.5%
Max Revenue beat(4)18.53%
Revenue beat(8)3
Avg Revenue beat(8)-3.44%
Revenue beat(12)5
Avg Revenue beat(12)5.89%
Revenue beat(16)9
Avg Revenue beat(16)11.85%
PT rev (1m)0%
PT rev (3m)4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.44%
EPS NY rev (1m)-6.34%
EPS NY rev (3m)-7.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)-2.5%
Revenue NY rev (3m)-2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.7 | ||
| Fwd PE | 14.19 | ||
| P/S | 2.22 | ||
| P/FCF | 8.98 | ||
| P/OCF | 9.09 | ||
| P/B | 1.25 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 32.97 |
EPS(TTM)5.43
EY4.4%
EPS(NY)8.69
Fwd EY7.05%
FCF(TTM)13.72
FCFY11.13%
OCF(TTM)13.56
OCFY11%
SpS55.52
BVpS98.84
TBVpS93.55
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 9.05% | ||
| ROCE | 2.13% | ||
| ROIC | 1.42% | ||
| ROICexc | 1.44% | ||
| ROICexgc | 1.49% | ||
| OM | 12.59% | ||
| PM (TTM) | 16.11% | ||
| GM | 59.07% | ||
| FCFM | 24.72% |
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-Score7
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.6 | ||
| Debt/FCF | 18.71 | ||
| Debt/EBITDA | 25.22 | ||
| Cap/Depr | 5.09% | ||
| Cap/Sales | 0.29% | ||
| Interest Coverage | 0.47 | ||
| Cash Conversion | 133.24% | ||
| Profit Quality | 153.45% | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 0.71 |
F-Score7
WACC7.63%
ROIC/WACC0.19
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)30.84%
EPS 3Y-19.07%
EPS 5Y-0.61%
EPS Q2Q%11.38%
EPS Next Y48.16%
EPS Next 2Y33.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-24.43%
Revenue growth 3Y13.54%
Revenue growth 5Y3.92%
Sales Q2Q%12.52%
Revenue Next Year10.88%
Revenue Next 2Y7.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-33.46%
EBIT growth 3Y-18.94%
EBIT growth 5Y7.36%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y47.33%
FCF growth 3Y9.73%
FCF growth 5Y25.48%
OCF growth 1Y22.81%
OCF growth 3Y6.75%
OCF growth 5Y17.27%