NELNET INC-CL A (NNI) Stock Fundamental Analysis
USA - NYSE:NNI - US64031N1081 - Common Stock
130.24 USD
-1.14 (-0.87%)
130.24 USD
0 (0%)
Taking everything into account, NNI scores 4 out of 10 in our fundamental rating. NNI was compared to 55 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NNI was profitable.
NNI had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.36%, NNI is in line with its industry, outperforming 54.55% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.05%, NNI is in line with its industry, outperforming 49.09% of the companies in the same industry.
NNI has a Return On Invested Capital (1.42%) which is in line with its industry peers.
NNI had an Average Return On Invested Capital over the past 3 years of 1.53%. This is significantly below the industry average of 10.97%.
| 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
NNI has a better Profit Margin (16.11%) than 72.73% of its industry peers.
NNI's Profit Margin has been stable in the last couple of years.
NNI has a Operating Margin of 12.59%. This is comparable to the rest of the industry: NNI outperforms 58.18% of its industry peers.
In the last couple of years the Operating Margin of NNI has grown nicely.
NNI has a Gross Margin of 59.07%. This is comparable to the rest of the industry: NNI outperforms 60.00% of its industry peers.
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
NNI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NNI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NNI has less shares outstanding
Compared to 1 year ago, NNI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that NNI is in the distress zone and has some risk of bankruptcy.
NNI has a Altman-Z score (0.72) which is in line with 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.
NNI's Debt to FCF ratio of 18.71 is in line compared to the rest of the industry. NNI outperforms 47.27% of its industry peers.
A Debt/Equity ratio of 2.60 is on the high side and indicates that NNI has dependencies on debt financing.
With a Debt to Equity ratio value of 2.60, NNI perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.6 | ||
| Debt/FCF | 18.71 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.18
WACC7.75%
2.3 Liquidity
A Current Ratio of 0.19 indicates that NNI may have some problems paying its short term obligations.
NNI has a worse Current ratio (0.19) than 70.91% of its industry peers.
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 Quick ratio of 0.19. This is in the lower half of the industry: NNI underperforms 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.84% over the past year.
The Earnings Per Share has been decreasing by -0.61% on average over the past years.
NNI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.43%.
Measured over the past years, NNI shows a small growth in Revenue. The Revenue has been growing by 3.92% on average per year.
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
The Earnings Per Share is expected to grow by 35.03% on average over the next years. This is a very strong growth
Based on estimates for the next years, NNI will show a quite strong growth in Revenue. The Revenue will grow by 8.07% on average per year.
EPS Next Y47.1%
EPS Next 2Y35.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.88%
Revenue Next 2Y8.07%
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.
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
The Price/Earnings ratio is 23.99, which indicates a rather expensive current valuation of NNI.
72.73% of the companies in the same industry are cheaper than NNI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.83. NNI is around the same levels.
Based on the Price/Forward Earnings ratio of 14.76, the valuation of NNI can be described as correct.
NNI's Price/Forward Earnings is on the same level as the industry average.
NNI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 14.76 |
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 ratio is a bit cheaper when compared to the industry. NNI is cheaper than 61.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.49 | ||
| EV/EBITDA | 33.76 |
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 35.03% in the coming years.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y35.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NNI has a yearly dividend return of 0.91%, which is pretty low.
NNI's Dividend Yield is comparable with the industry average which is at 4.52.
With a Dividend Yield of 0.91, NNI pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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
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 2Y35.03%
EPS Next 3YN/A
130.24
-1.14 (-0.87%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners49.56%
Inst Owner Change-0.11%
Ins Owners38.76%
Ins Owner Change14.15%
Market Cap4.71B
Revenue(TTM)2.01B
Net Income(TTM)323.48M
Analysts45
Price Target132.6 (1.81%)
Short Float %2.16%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)0%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-1.94%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-7.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 14.76 | ||
| P/S | 2.35 | ||
| P/FCF | 9.49 | ||
| P/OCF | 9.6 | ||
| P/B | 1.32 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 33.76 |
EPS(TTM)5.43
EY4.17%
EPS(NY)8.83
Fwd EY6.78%
FCF(TTM)13.72
FCFY10.54%
OCF(TTM)13.56
OCFY10.41%
SpS55.52
BVpS98.84
TBVpS93.55
PEG (NY)0.51
PEG (5Y)N/A
Graham Number109.89
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%
ROICexgc growth 3Y-4.39%
ROICexgc 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 | 0.72 |
F-Score7
WACC7.75%
ROIC/WACC0.18
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 Y47.1%
EPS Next 2Y35.03%
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 2Y8.07%
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%
NELNET INC-CL A / NNI FAQ
What is the ChartMill fundamental rating of NELNET INC-CL A (NNI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to NNI.
What is the valuation status of NELNET INC-CL A (NNI) stock?
ChartMill assigns a valuation rating of 5 / 10 to NELNET INC-CL A (NNI). This can be considered as Fairly Valued.
How profitable is NELNET INC-CL A (NNI) stock?
NELNET INC-CL A (NNI) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for NNI stock?
The Price/Earnings (PE) ratio for NELNET INC-CL A (NNI) is 23.99 and the Price/Book (PB) ratio is 1.32.
Can you provide the expected EPS growth for NNI stock?
The Earnings per Share (EPS) of NELNET INC-CL A (NNI) is expected to grow by 47.1% in the next year.