NAVIENT CORP (NAVI) Stock Fundamental Analysis
NASDAQ:NAVI - Nasdaq - US63938C1080 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to NAVI. NAVI was compared to 53 industry peers in the Consumer Finance industry. While NAVI is still in line with the averages on profitability rating, there are concerns on its financial health. NAVI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NAVI was profitable.
In the past year NAVI had a positive cash flow from operations.
In the past 5 years NAVI has always been profitable.
Of the past 5 years NAVI 4 years had a positive operating cash flow.
1.2 Ratios
NAVI's Return On Assets of 0.15% is on the low side compared to the rest of the industry. NAVI is outperformed by 73.08% of its industry peers.
The Return On Equity of NAVI (2.93%) is worse than 69.23% of its industry peers.
NAVI has a Return On Invested Capital of 0.15%. This is comparable to the rest of the industry: NAVI outperforms 40.38% of its industry peers.
NAVI had an Average Return On Invested Capital over the past 3 years of 0.44%. This is significantly below the industry average of 7.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.15% | ||
| ROE | 2.93% | ||
| ROIC | 0.15% |
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 (9.07%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of NAVI has declined.
With a Operating Margin value of 12.06%, NAVI perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
NAVI's Operating Margin has declined in the last couple of years.
NAVI has a better Gross Margin (107.35%) than 100.00% of its industry peers.
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 | 12.06% | ||
| PM (TTM) | 9.07% | ||
| GM | 107.35% |
OM growth 3Y-36.89%
OM growth 5Y-22.27%
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.
Compared to 5 years ago, NAVI has less shares outstanding
The debt/assets ratio for NAVI has been reduced compared to a year ago.
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 65.38% of the companies in the same industry.
The Debt to FCF ratio of NAVI is 65.70, which is on the high side as it means it would take NAVI, 65.70 years of fcf income to pay off all of its debts.
NAVI's Debt to FCF ratio of 65.70 is on the low side compared to the rest of the industry. NAVI is outperformed by 67.31% of its industry peers.
NAVI has a Debt/Equity ratio of 18.56. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 18.56, NAVI is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.56 | ||
| Debt/FCF | 65.7 | ||
| Altman-Z | 0.11 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
NAVI has a Current Ratio of 0.55. This is a bad value and indicates that NAVI is not financially healthy enough and could expect problems in meeting its short term obligations.
NAVI has a worse Current ratio (0.55) than 63.46% of its industry peers.
A Quick Ratio of 0.55 indicates that NAVI may have some problems paying its short term obligations.
NAVI's Quick ratio of 0.55 is on the low side compared to the rest of the industry. NAVI is outperformed by 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
NAVI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.92%.
The Earnings Per Share has been decreasing by -5.62% on average over the past years.
NAVI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -31.76%.
The Revenue for NAVI have been decreasing by -13.57% on average. This is quite bad
EPS 1Y (TTM)-17.92%
EPS 3Y-13.56%
EPS 5Y-5.62%
EPS Q2Q%-214.29%
Revenue 1Y (TTM)-31.76%
Revenue growth 3Y-24.44%
Revenue growth 5Y-13.57%
Sales Q2Q%-30.05%
3.2 Future
The Earnings Per Share is expected to decrease by -8.08% on average over the next years.
The Revenue is expected to decrease by -0.56% on average over the next years.
EPS Next Y-43.65%
EPS Next 2Y-14.18%
EPS Next 3Y-8.08%
EPS Next 5YN/A
Revenue Next Year1.64%
Revenue Next 2Y-0.56%
Revenue Next 3YN/A
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
A Price/Earnings ratio of 7.12 indicates a rather cheap valuation of NAVI.
86.54% of the companies in the same industry are more expensive than NAVI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.62, NAVI is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.63, NAVI is valued correctly.
NAVI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of NAVI to the average of the S&P500 Index (22.70), we can say NAVI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 12.63 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, NAVI is valued cheaply inside the industry as 82.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.9 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as NAVI's earnings are expected to decrease with -8.08% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.18%
EPS Next 3Y-8.08%
5. Dividend
5.1 Amount
NAVI has a Yearly Dividend Yield of 4.55%, which is a nice return.
Compared to an average industry Dividend Yield of 3.98, NAVI pays a better dividend. On top of this NAVI pays more dividend than 82.69% of the companies listed in the same industry.
NAVI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
5.2 History
The dividend of NAVI decreases each year by -0.36%.
NAVI has paid a dividend for at least 10 years, which is a reliable track record.
NAVI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.36%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
91.14% of the earnings are spent on dividend by NAVI. This is not a sustainable payout ratio.
The Dividend Rate of NAVI has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP91.14%
EPS Next 2Y-14.18%
EPS Next 3Y-8.08%
14.02
-0.05 (-0.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners103.3%
Inst Owner Change-97.99%
Ins Owners2.64%
Ins Owner Change2.37%
Market Cap1.44B
Analysts52
Price Target14.39 (2.64%)
Short Float %7.36%
Short Ratio8.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
Yearly Dividend0.64
Dividend Growth(5Y)-0.36%
DP91.14%
Div Incr Years0
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)219.52%
Min EPS beat(2)-33.71%
Max EPS beat(2)472.75%
EPS beat(4)1
Avg EPS beat(4)86.43%
Min EPS beat(4)-72.68%
Max EPS beat(4)472.75%
EPS beat(8)2
Avg EPS beat(8)38.96%
EPS beat(12)4
Avg EPS beat(12)14.2%
EPS beat(16)8
Avg EPS beat(16)19.38%
Revenue beat(2)0
Avg Revenue beat(2)-20.72%
Min Revenue beat(2)-21.76%
Max Revenue beat(2)-19.67%
Revenue beat(4)0
Avg Revenue beat(4)-12.33%
Min Revenue beat(4)-21.76%
Max Revenue beat(4)-1.96%
Revenue beat(8)3
Avg Revenue beat(8)-3.61%
Revenue beat(12)7
Avg Revenue beat(12)11.63%
Revenue beat(16)11
Avg Revenue beat(16)24.18%
PT rev (1m)-3.79%
PT rev (3m)-5.22%
EPS NQ rev (1m)-12.85%
EPS NQ rev (3m)-13.53%
EPS NY rev (1m)-26.74%
EPS NY rev (3m)-26.54%
Revenue NQ rev (1m)-5.1%
Revenue NQ rev (3m)-5.1%
Revenue NY rev (1m)-6.58%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 12.63 | ||
| P/S | 1.66 | ||
| P/FCF | 1.9 | ||
| P/OCF | 1.9 | ||
| P/B | 0.54 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.97
EY14.05%
EPS(NY)1.11
Fwd EY7.92%
FCF(TTM)7.39
FCFY52.7%
OCF(TTM)7.39
OCFY52.7%
SpS8.46
BVpS26.16
TBVpS21.9
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.15% | ||
| ROE | 2.93% | ||
| ROCE | 0.22% | ||
| ROIC | 0.15% | ||
| ROICexc | 0.15% | ||
| ROICexgc | 0.15% | ||
| OM | 12.06% | ||
| PM (TTM) | 9.07% | ||
| GM | 107.35% | ||
| FCFM | 87.37% |
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)0.85%
ROICexcg growth 3Y-43.81%
ROICexcg growth 5Y-23.43%
ROICexc growth 3Y-44.69%
ROICexc growth 5Y-24.15%
OM growth 3Y-36.89%
OM growth 5Y-22.27%
PM growth 3Y-24.9%
PM growth 5Y-14.58%
GM growth 3Y-0.7%
GM growth 5Y-1.38%
F-Score6
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.56 | ||
| Debt/FCF | 65.7 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.03 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 963.29% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 0.11 |
F-Score6
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)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.92%
EPS 3Y-13.56%
EPS 5Y-5.62%
EPS Q2Q%-214.29%
EPS Next Y-43.65%
EPS Next 2Y-14.18%
EPS Next 3Y-8.08%
EPS Next 5YN/A
Revenue 1Y (TTM)-31.76%
Revenue growth 3Y-24.44%
Revenue growth 5Y-13.57%
Sales Q2Q%-30.05%
Revenue Next Year1.64%
Revenue Next 2Y-0.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-76.92%
EBIT growth 3Y-52.32%
EBIT growth 5Y-32.82%
EBIT Next Year-50.41%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y32.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.81%
OCF growth 3YN/A
OCF growth 5YN/A