NELNET INC-CL A (NNI)
US64031N1081 - Common Stock
Taking everything into account, NNI scores 4 out of 10 in our fundamental rating. NNI was compared to 52 industry peers in the Consumer Finance industry. NNI has a medium profitability rating, but doesn't score so well on its financial health evaluation. NNI is valied quite expensively at the moment, while it does show a decent growth rate.
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.
NNI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NNI has a Return On Assets of 1.29%. This is comparable to the rest of the industry: NNI outperforms 47.06% of its industry peers.
NNI has a Return On Equity (5.53%) which is in line with its industry peers.
NNI's Return On Invested Capital of 1.83% is in line compared to the rest of the industry. NNI outperforms 49.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NNI is significantly below the industry average of 7.32%.
The last Return On Invested Capital (1.83%) for NNI is above the 3 year average (1.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 5.53% | ||
| ROIC | 1.83% |
ROA(3y)1.46%
ROA(5y)1.3%
ROE(3y)9.45%
ROE(5y)9.48%
ROIC(3y)1.62%
ROIC(5y)1.21%
1.3 Margins
NNI has a Profit Margin of 7.02%. This is comparable to the rest of the industry: NNI outperforms 41.18% of its industry peers.
In the last couple of years the Profit Margin of NNI has declined.
NNI has a Operating Margin of 12.76%. This is comparable to the rest of the industry: NNI outperforms 58.82% of its industry peers.
NNI's Operating Margin has declined in the last couple of years.
The Gross Margin of NNI (51.92%) is better than 60.78% of its industry peers.
In the last couple of years the Gross Margin of NNI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.76% | ||
| PM (TTM) | 7.02% | ||
| GM | 51.92% |
OM growth 3Y-6.77%
OM growth 5Y-9.53%
PM growth 3Y-44.38%
PM growth 5Y-20.3%
GM growth 3Y-10.6%
GM growth 5Y-2.52%
2. Health
2.1 Basic Checks
NNI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NNI has about the same amount of 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 0.71. 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 (0.71) which is in line with its industry peers.
The Debt to FCF ratio of NNI is 19.92, which is on the high side as it means it would take NNI, 19.92 years of fcf income to pay off all of its debts.
NNI has a worse Debt to FCF ratio (19.92) than 60.78% of its industry peers.
NNI has a Debt/Equity ratio of 3.04. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.04, NNI is in line with its industry, outperforming 41.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.04 | ||
| Debt/FCF | 19.92 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.27
WACC6.82%
2.3 Liquidity
NNI has a Current Ratio of 0.25. This is a bad value and indicates that NNI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of NNI (0.25) is worse than 72.55% of its industry peers.
NNI has a Quick Ratio of 0.25. 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 (0.25) than 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
The earnings per share for NNI have decreased strongly by -15.66% in the last year.
The earnings per share for NNI have been decreasing by -14.54% on average. This is quite bad
Looking at the last year, NNI shows a very strong growth in Revenue. The Revenue has grown by 22.30%.
Measured over the past years, NNI shows a small growth in Revenue. The Revenue has been growing by 4.35% on average per year.
EPS 1Y (TTM)-15.66%
EPS 3Y-35.77%
EPS 5Y-14.54%
EPS Q2Q%-93.91%
Revenue 1Y (TTM)22.3%
Revenue growth 3Y14.43%
Revenue growth 5Y4.35%
Sales Q2Q%-6.69%
3.2 Future
The Earnings Per Share is expected to grow by 53.46% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.03% on average over the next years.
EPS Next Y80.44%
EPS Next 2Y53.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.5%
Revenue Next 2Y5.03%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 34.66 indicates a quite expensive valuation of NNI.
Based on the Price/Earnings ratio, NNI is valued a bit more expensive than 70.59% of the companies in the same industry.
When comparing the Price/Earnings ratio of NNI to the average of the S&P500 Index (27.41), we can say NNI is valued slightly more expensively.
NNI is valuated rather expensively with a Price/Forward Earnings ratio of 17.86.
Based on the Price/Forward Earnings ratio, NNI is valued a bit more expensive than 62.75% of the companies in the same industry.
NNI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.66 | ||
| Fwd PE | 17.86 |
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.
NNI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.69 | ||
| EV/EBITDA | 27.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NNI's earnings are expected to grow with 53.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y53.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NNI has a Yearly Dividend Yield of 1.06%. Purely for dividend investing, there may be better candidates out there.
NNI's Dividend Yield is comparable with the industry average which is at 4.55.
Compared to an average S&P500 Dividend Yield of 2.33, NNI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
On average, the dividend of NNI grows each year by 9.98%, which is quite nice.
NNI has been paying a dividend for at least 10 years, so it has a reliable track record.
NNI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.98%
Div Incr Years10
Div Non Decr Years13
5.3 Sustainability
NNI pays out 22.57% of its income as dividend. This is a sustainable payout ratio.
The dividend of NNI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.57%
EPS Next 2Y53.46%
EPS Next 3YN/A
NELNET INC-CL A
NYSE:NNI (1/3/2025, 8:04:01 PM)
After market: 106.4 0 (0%)106.4
+0.71 (+0.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners48.77%
Inst Owner Change1.24%
Ins Owners37.79%
Ins Owner Change5.41%
Market Cap3.86B
Analysts45
Price Target108.12 (1.62%)
Short Float %1.58%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Dividend Growth(5Y)9.98%
DP22.57%
Div Incr Years10
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-51.6%
Min EPS beat(2)-94.9%
Max EPS beat(2)-8.3%
EPS beat(4)1
Avg EPS beat(4)-44.18%
Min EPS beat(4)-103.84%
Max EPS beat(4)30.33%
EPS beat(8)1
Avg EPS beat(8)-39.6%
EPS beat(12)5
Avg EPS beat(12)-5.09%
EPS beat(16)8
Avg EPS beat(16)1.59%
Revenue beat(2)0
Avg Revenue beat(2)-10.42%
Min Revenue beat(2)-10.5%
Max Revenue beat(2)-10.33%
Revenue beat(4)1
Avg Revenue beat(4)-9.92%
Min Revenue beat(4)-23.6%
Max Revenue beat(4)4.75%
Revenue beat(8)2
Avg Revenue beat(8)0.09%
Revenue beat(12)6
Avg Revenue beat(12)13.51%
Revenue beat(16)9
Avg Revenue beat(16)10.83%
PT rev (1m)0%
PT rev (3m)8.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.66 | ||
| Fwd PE | 17.86 | ||
| P/S | 1.49 | ||
| P/FCF | 7.69 | ||
| P/OCF | 6.87 | ||
| P/B | 1.17 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 27.71 |
EPS(TTM)3.07
EY2.89%
EPS(NY)5.96
Fwd EY5.6%
FCF(TTM)13.84
FCFY13.01%
OCF(TTM)15.49
OCFY14.56%
SpS71.53
BVpS90.68
TBVpS85.26
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 5.53% | ||
| ROCE | 2.63% | ||
| ROIC | 1.83% | ||
| ROICexc | 1.86% | ||
| ROICexgc | 1.92% | ||
| OM | 12.76% | ||
| PM (TTM) | 7.02% | ||
| GM | 51.92% | ||
| FCFM | 19.35% |
ROA(3y)1.46%
ROA(5y)1.3%
ROE(3y)9.45%
ROE(5y)9.48%
ROIC(3y)1.62%
ROIC(5y)1.21%
ROICexc(3y)1.63%
ROICexc(5y)1.22%
ROICexgc(3y)1.66%
ROICexgc(5y)1.24%
ROCE(3y)2.21%
ROCE(5y)1.65%
ROICexcg growth 3Y19.22%
ROICexcg growth 5Y3.07%
ROICexc growth 3Y18.73%
ROICexc growth 5Y2.83%
OM growth 3Y-6.77%
OM growth 5Y-9.53%
PM growth 3Y-44.38%
PM growth 5Y-20.3%
GM growth 3Y-10.6%
GM growth 5Y-2.52%
F-Score8
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.04 | ||
| Debt/FCF | 19.92 | ||
| Debt/EBITDA | 22.05 | ||
| Cap/Depr | 48.68% | ||
| Cap/Sales | 2.3% | ||
| Interest Coverage | 0.47 | ||
| Cash Conversion | 123.84% | ||
| Profit Quality | 275.87% | ||
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 0.71 |
F-Score8
WACC6.82%
ROIC/WACC0.27
Cap/Depr(3y)43.08%
Cap/Depr(5y)46.86%
Cap/Sales(3y)3.56%
Cap/Sales(5y)4.83%
Profit Quality(3y)227.49%
Profit Quality(5y)171.73%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.66%
EPS 3Y-35.77%
EPS 5Y-14.54%
EPS Q2Q%-93.91%
EPS Next Y80.44%
EPS Next 2Y53.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)22.3%
Revenue growth 3Y14.43%
Revenue growth 5Y4.35%
Sales Q2Q%-6.69%
Revenue Next Year4.5%
Revenue Next 2Y5.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y86.91%
EBIT growth 3Y6.68%
EBIT growth 5Y-5.6%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-33.13%
FCF growth 3Y53.36%
FCF growth 5Y19.73%
OCF growth 1Y-30.78%
OCF growth 3Y26.72%
OCF growth 5Y9.83%