NAVIENT CORP (NAVI) Stock Fundamental Analysis
USA - NASDAQ:NAVI - US63938C1080 - Common Stock
13.11 USD
+0.14 (+1.08%)
13.11 USD
0 (0%)
NAVI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 54 industry peers in the Consumer Finance industry. There are concerns on the financial health of NAVI while its profitability can be described as average. NAVI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NAVI had positive earnings in the past year.
NAVI had a positive operating cash flow in the past year.
NAVI had positive earnings in each of the past 5 years.
Each year in the past 5 years NAVI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NAVI (0.07%) is worse than 70.37% of its industry peers.
Looking at the Return On Equity, with a value of 1.33%, NAVI is doing worse than 70.37% of the companies in the same industry.
NAVI has a Return On Invested Capital of 0.05%. This is comparable to the rest of the industry: NAVI outperforms 40.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NAVI is significantly below the industry average of 11.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.07% | ||
| ROE | 1.33% | ||
| ROIC | 0.05% |
ROA(3y)0.51%
ROA(5y)0.58%
ROE(3y)11.63%
ROE(5y)15.89%
ROIC(3y)0.44%
ROIC(5y)0.59%
1.3 Margins
NAVI has a Profit Margin of 5.24%. This is in the lower half of the industry: NAVI underperforms 66.67% of its industry peers.
NAVI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.93%, NAVI is in line with its industry, outperforming 46.30% of the companies in the same industry.
NAVI's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 107.09%, NAVI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of NAVI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.93% | ||
| PM (TTM) | 5.24% | ||
| GM | 107.09% |
OM growth 3Y-38.66%
OM growth 5Y-23.58%
PM growth 3Y-24.9%
PM growth 5Y-14.58%
GM growth 3Y-0.7%
GM growth 5Y-1.38%
2. Health
2.1 Basic Checks
NAVI has less shares outstanding than it did 1 year ago.
NAVI has less shares outstanding than it did 5 years ago.
NAVI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.11, we must say that NAVI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.11, NAVI is doing worse than 64.81% of the companies in the same industry.
The Debt to FCF ratio of NAVI is 241.52, which is on the high side as it means it would take NAVI, 241.52 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NAVI (241.52) is worse than 62.96% of its industry peers.
A Debt/Equity ratio of 18.37 is on the high side and indicates that NAVI has dependencies on debt financing.
NAVI has a worse Debt to Equity ratio (18.37) than 87.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.37 | ||
| Debt/FCF | 241.52 | ||
| Altman-Z | 0.11 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.50 indicates that NAVI may have some problems paying its short term obligations.
NAVI has a worse Current ratio (0.50) than 62.96% of its industry peers.
A Quick Ratio of 0.50 indicates that NAVI may have some problems paying its short term obligations.
NAVI has a worse Quick ratio (0.50) than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.97% over the past year.
Measured over the past years, NAVI shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.62% on average per year.
Looking at the last year, NAVI shows a very negative growth in Revenue. The Revenue has decreased by -38.60% in the last year.
Measured over the past years, NAVI shows a very negative growth in Revenue. The Revenue has been decreasing by -13.57% on average per year.
EPS 1Y (TTM)15.97%
EPS 3Y-13.56%
EPS 5Y-5.62%
EPS Q2Q%-27.59%
Revenue 1Y (TTM)-38.6%
Revenue growth 3Y-24.44%
Revenue growth 5Y-13.57%
Sales Q2Q%20%
3.2 Future
NAVI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.01% yearly.
Based on estimates for the next years, NAVI will show a small growth in Revenue. The Revenue will grow by 6.98% on average per year.
EPS Next Y-49.02%
EPS Next 2Y-18.53%
EPS Next 3Y-9.01%
EPS Next 5YN/A
Revenue Next Year0.71%
Revenue Next 2Y0.56%
Revenue Next 3Y6.98%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 7.85, the valuation of NAVI can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of NAVI indicates a somewhat cheap valuation: NAVI is cheaper than 74.07% of the companies listed in the same industry.
NAVI is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.03, the valuation of NAVI can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NAVI is on the same level as its industry peers.
NAVI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 10.03 |
4.2 Price Multiples
NAVI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NAVI is cheaper than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.72 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
NAVI's earnings are expected to decrease with -9.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-18.53%
EPS Next 3Y-9.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.85%, NAVI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.46, NAVI pays a bit more dividend than its industry peers.
NAVI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
5.2 History
The dividend of NAVI has a limited annual growth rate of 0.28%.
NAVI has paid a dividend for at least 10 years, which is a reliable track record.
NAVI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.28%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
NAVI pays out 197.06% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of NAVI has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP197.06%
EPS Next 2Y-18.53%
EPS Next 3Y-9.01%
13.11
+0.14 (+1.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners103.4%
Inst Owner Change-0.57%
Ins Owners1.89%
Ins Owner Change-0.6%
Market Cap1.31B
Analysts51.43
Price Target14.28 (8.92%)
Short Float %7.82%
Short Ratio7.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
Yearly Dividend0.65
Dividend Growth(5Y)0.28%
DP197.06%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-23.4%
Max EPS beat(2)23.1%
EPS beat(4)2
Avg EPS beat(4)66.75%
Min EPS beat(4)-205.47%
Max EPS beat(4)472.75%
EPS beat(8)2
Avg EPS beat(8)12.8%
EPS beat(12)3
Avg EPS beat(12)6.91%
EPS beat(16)6
Avg EPS beat(16)-1.78%
Revenue beat(2)2
Avg Revenue beat(2)4.35%
Min Revenue beat(2)0.78%
Max Revenue beat(2)7.92%
Revenue beat(4)2
Avg Revenue beat(4)-6.06%
Min Revenue beat(4)-21.76%
Max Revenue beat(4)7.92%
Revenue beat(8)3
Avg Revenue beat(8)-3.55%
Revenue beat(12)6
Avg Revenue beat(12)-1.5%
Revenue beat(16)10
Avg Revenue beat(16)12.07%
PT rev (1m)-2.33%
PT rev (3m)5.88%
EPS NQ rev (1m)-1.61%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)-8.34%
EPS NY rev (3m)-9.19%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)4.55%
Revenue NY rev (1m)4.06%
Revenue NY rev (3m)3.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 10.03 | ||
| P/S | 2.02 | ||
| P/FCF | 6.72 | ||
| P/OCF | 6.72 | ||
| P/B | 0.51 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.67
EY12.74%
EPS(NY)1.31
Fwd EY9.97%
FCF(TTM)1.95
FCFY14.87%
OCF(TTM)1.95
OCFY14.87%
SpS6.49
BVpS25.64
TBVpS21.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.07% | ||
| ROE | 1.33% | ||
| ROCE | 0.07% | ||
| ROIC | 0.05% | ||
| ROICexc | 0.05% | ||
| ROICexgc | 0.05% | ||
| OM | 4.93% | ||
| PM (TTM) | 5.24% | ||
| GM | 107.09% | ||
| FCFM | 30.05% |
ROA(3y)0.51%
ROA(5y)0.58%
ROE(3y)11.63%
ROE(5y)15.89%
ROIC(3y)0.44%
ROIC(5y)0.59%
ROICexc(3y)0.44%
ROICexc(5y)0.6%
ROICexgc(3y)0.45%
ROICexgc(5y)0.61%
ROCE(3y)0.64%
ROCE(5y)0.86%
ROICexcg growth 3Y-44.69%
ROICexcg growth 5Y-24.15%
ROICexc growth 3Y-44.69%
ROICexc growth 5Y-24.15%
OM growth 3Y-38.66%
OM growth 5Y-23.58%
PM growth 3Y-24.9%
PM growth 5Y-14.58%
GM growth 3Y-0.7%
GM growth 5Y-1.38%
F-Score5
Asset Turnover0.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.37 | ||
| Debt/FCF | 241.52 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.01 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 573.53% | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 0.11 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)231.39%
Profit Quality(5y)206.33%
High Growth Momentum
Growth
EPS 1Y (TTM)15.97%
EPS 3Y-13.56%
EPS 5Y-5.62%
EPS Q2Q%-27.59%
EPS Next Y-49.02%
EPS Next 2Y-18.53%
EPS Next 3Y-9.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-38.6%
Revenue growth 3Y-24.44%
Revenue growth 5Y-13.57%
Sales Q2Q%20%
Revenue Next Year0.71%
Revenue Next 2Y0.56%
Revenue Next 3Y6.98%
Revenue Next 5YN/A
EBIT growth 1Y-84.83%
EBIT growth 3Y-53.65%
EBIT growth 5Y-33.95%
EBIT Next Year-47.56%
EBIT Next 3Y-9.36%
EBIT Next 5YN/A
FCF growth 1Y-62.43%
FCF growth 3Y-13.21%
FCF growth 5Y-14.74%
OCF growth 1Y-62.43%
OCF growth 3Y-13.21%
OCF growth 5Y-14.74%