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Navient

LSE:0K5R
Snowflake Description

Good value average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
0K5R
LSE
$3B
Market Cap
  1. Home
  2. GB
  3. Diversified Financials
Company description

Navient Corporation provides education loan management and business processing solutions for education, healthcare, and government clients at the federal, state, and local levels in the United States. The last earnings update was 54 days ago. More info.


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0K5R Share Price and Events
7 Day Returns
0%
LSE:0K5R
0%
GB Consumer Finance
0.6%
GB Market
1 Year Returns
-9.1%
LSE:0K5R
-23.7%
GB Consumer Finance
1.1%
GB Market
0K5R Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Navient (0K5R) 0% -0.6% 12.8% -9.1% - -
GB Consumer Finance 0% 5.9% -3.2% -23.7% -69.6% -61.5%
GB Market 0.6% 1.9% 6.9% 1.1% 15.6% 6.2%
1 Year Return vs Industry and Market
  • 0K5R outperformed the Consumer Finance industry which returned -23.7% over the past year.
  • 0K5R underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.1% over the past year.
Price Volatility
0K5R
Industry
5yr Volatility vs Market

Value

 Is Navient undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Navient to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Navient.

LSE:0K5R Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= $16.49 * 13.9%
$2.30
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. $16.49
Discount Rate (Cost of Equity) See below 13.1%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:0K5R
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.694 (1 + (1- 21%) (3345.7%))
13.088
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (2 * 5.96%)
13.15%

Discounted Cash Flow Calculation for LSE:0K5R using Excess Returns Model Model

The calculations below outline how an intrinsic value for Navient is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:0K5R Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.9% – 13.15%) * $16.49)
$0.13
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.13 / (13.15% - 1.23%)
$1.10
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $16.49 + $1.10
$17.59
LSE:0K5R Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:0K5R represents 0.98606x of NasdaqGS:NAVI
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.98606x
Value per Share
(Listing Adjusted, USD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 17.59 x 0.98606
$17.35
Value per share (USD) From above. $17.35
Current discount Discount to share price of $12.02
= -1 x ($12.02 - $17.35) / $17.35
30.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Navient is available for.
Intrinsic value
31%
Share price is $12.02 vs Future cash flow value of $17.35
Current Discount Checks
For Navient to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Navient's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Navient's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Navient's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Navient's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:0K5R PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.52
NasdaqGS:NAVI Share Price ** NasdaqGS (2019-04-03) in USD $12.19
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry PE Ratio Median Figure of 12 Publicly-Listed Consumer Finance Companies 12.42x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Navient.

LSE:0K5R PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:NAVI Share Price ÷ EPS (both in USD)

= 12.19 ÷ 1.52

8.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Navient is good value based on earnings compared to the GB Consumer Finance industry average.
  • Navient is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Navient's expected growth come at a high price?
Raw Data
LSE:0K5R PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
-2.3%per year
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry PEG Ratio Median Figure of 7 Publicly-Listed Consumer Finance Companies 0.66x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:0K5R PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.02x ÷ -2.3%

-3.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Navient earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Navient's assets?
Raw Data
LSE:0K5R PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $14.22
NasdaqGS:NAVI Share Price * NasdaqGS (2019-04-03) in USD $12.19
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry PB Ratio Median Figure of 14 Publicly-Listed Consumer Finance Companies 1.71x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:0K5R PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:NAVI Share Price ÷ Book Value per Share (both in USD)

= 12.19 ÷ 14.22

0.86x

* Primary Listing of Navient.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Navient is good value based on assets compared to the GB Consumer Finance industry average.
X
Value checks
We assess Navient's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Navient has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Navient expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-2.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Navient expected to grow at an attractive rate?
  • Navient's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Navient's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
  • Navient's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:0K5R Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:0K5R Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts -2.3%
LSE:0K5R Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts -14.7%
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 23.8%
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 13.2%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:0K5R Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:0K5R Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,204 342 1
2020-12-31 1,088 402 7
2019-12-31 1,165 444 7
LSE:0K5R Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,553 1,140 395
2018-09-30 1,688 898 239
2018-06-30 1,775 1,009 302
2018-03-31 1,853 1,084 330
2017-12-31 1,785 1,158 292
2017-09-30 1,808 1,157 522
2017-06-30 1,910 1,216 576
2017-03-31 1,944 1,372 588
2016-12-31 2,094 1,347 681
2016-09-30 2,244 1,565 808
2016-06-30 2,239 1,626 814
2016-03-31 2,349 1,753 872

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Navient's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Navient's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:0K5R Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Navient Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0K5R Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.94 1.94 1.94 1.00
2020-12-31 1.94 2.10 1.73 5.00
2019-12-31 1.85 2.02 1.65 5.00
LSE:0K5R Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.52
2018-09-30 0.91
2018-06-30 1.14
2018-03-31 1.23
2017-12-31 1.06
2017-09-30 1.85
2017-06-30 1.97
2017-03-31 1.94
2016-12-31 2.16
2016-09-30 2.43
2016-06-30 2.35
2016-03-31 2.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Navient is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Navient's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Navient has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Navient performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Navient's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Navient's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Navient's 1-year earnings growth exceeds its 5-year average (35.3% vs -27%)
  • Navient's earnings growth has exceeded the GB Consumer Finance industry average in the past year (35.3% vs 19.9%).
Earnings and Revenue History
Navient's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Navient Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0K5R Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,553.00 395.00 507.00
2018-09-30 1,688.00 239.00 518.00
2018-06-30 1,775.00 302.00 525.00
2018-03-31 1,853.00 330.00 523.00
2017-12-31 1,785.00 292.00 519.00
2017-09-30 1,808.00 522.00 502.00
2017-06-30 1,910.00 576.00 497.00
2017-03-31 1,944.00 588.00 498.00
2016-12-31 2,094.00 681.00 500.00
2016-09-30 2,244.00 808.00 502.00
2016-06-30 2,239.00 814.00 485.00
2016-03-31 2,349.00 872.00 476.00
2015-12-31 2,521.00 983.00 467.00
2015-09-30 2,518.00 973.00 456.00
2015-06-30 2,621.00 1,098.00 459.00
2015-03-31 2,791.00 1,221.00 460.00
2014-12-31 2,927.00 1,131.00 479.00
2014-09-30 3,004.00 1,085.00 491.00
2014-06-30 2,951.00 971.00 510.00
2014-03-31 3,395.00 1,166.00 521.00
2013-12-31 3,414.00 1,292.00 504.00
2013-09-30 3,196.00 1,430.00 494.00
2013-06-30 3,009.00 1,366.00 479.00
2013-03-31 2,339.00 1,153.00 457.00
2012-12-31 2,426.00 921.00 457.00
2012-09-30 2,355.00 1,082.00 438.00
2012-06-30 2,013.00 824.00 462.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Navient has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Navient used its assets less efficiently than the GB Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if Navient improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Navient's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Navient has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Navient's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Navient's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Navient is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Navient's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Navient's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Navient Company Filings, last reported 3 months ago.

LSE:0K5R Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,547.00 99,720.00 1,443.00
2018-09-30 3,755.00 101,851.00 2,285.00
2018-06-30 3,745.00 104,178.00 1,791.00
2018-03-31 3,668.00 108,591.00 2,898.00
2017-12-31 3,485.00 110,476.00 1,956.00
2017-09-30 3,550.00 112,364.00 1,694.00
2017-06-30 3,564.00 115,473.00 1,585.00
2017-03-31 3,672.00 112,956.00 1,787.00
2016-12-31 3,723.00 116,372.00 1,787.00
2016-09-30 3,734.00 120,069.00 2,753.00
2016-06-30 3,703.00 123,081.00 2,460.00
2016-03-31 3,839.00 126,119.00 2,185.00
2015-12-31 3,933.00 128,402.00 2,272.00
2015-09-30 3,887.00 131,931.00 2,188.00
2015-06-30 3,933.00 134,192.00 2,225.00
2015-03-31 4,091.00 137,751.00 2,861.00
2014-12-31 4,198.00 140,094.00 2,224.00
2014-09-30 4,156.00 133,663.00 1,942.00
2014-06-30 4,021.00 136,641.00 3,288.00
2014-03-31 5,598.00 148,483.00 5,335.00
2013-12-31 5,642.00 151,237.00 6,814.00
2013-09-30 5,632.00 153,308.00 6,058.00
2013-06-30 5,434.00 153,467.00 4,703.00
2013-03-31 5,154.00 166,255.00 5,369.00
2012-12-31 5,066.00 173,239.00 6,141.00
2012-09-30 4,946.00 176,242.00 5,132.00
2012-06-30 4,938.00 181,075.00 4,865.00
  • Navient's level of debt (2811.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (2680.2% vs 2811.4% today).
  • Debt is not well covered by operating cash flow (1.1%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Navient's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Navient's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Navient has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Navient's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.25%
Current annual income from Navient dividends. Estimated to be 5.34% next year.
If you bought $2,000 of Navient shares you are expected to receive $105 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Navient's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • Navient's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:0K5R Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:0K5R Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.64 2.00
2020-12-31 0.66 8.00
2019-12-31 0.65 8.00
LSE:0K5R Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-06 0.640 5.351
2018-11-09 0.640 6.084
2018-11-02 0.640 5.185
2018-10-23 0.640 5.419
2018-04-04 0.640 4.742
2018-02-05 0.640 4.801
2017-11-14 0.640 4.813
2017-08-10 0.640 4.869
2017-04-05 0.640 4.231
2017-02-06 0.640 4.297
2016-10-06 0.640 4.117
2016-08-04 0.640 4.514
2016-04-04 0.640 4.955
2016-01-26 0.640 6.096
2015-10-29 0.640 5.604
2015-07-30 0.640 4.935
2015-05-21 0.640 3.529
2015-01-26 0.640 3.153
2014-10-09 0.600 2.973
2014-08-14 0.600 3.412
2014-08-01 0.600 3.507
2014-07-16 0.600 3.382
2013-08-05 0.600 2.663
2013-07-17 0.600 2.446
2013-05-03 0.600 2.632
2013-04-17 0.600 2.920
2013-02-26 0.600 3.014
2013-01-16 0.500 2.818
2011-05-06 0.400 2.690
2011-04-20 0.400 2.458
2009-04-22 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Navient has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Navient only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Navient's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).
X
Income/ dividend checks
We assess Navient's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Navient afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Navient has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Navient's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jack Remondi
COMPENSATION $6,456,736
AGE 55
TENURE AS CEO 5.3 years
CEO Bio

Mr. John F. Remondi, also known as Jack, has been the Chief Executive Officer and President of Navient Corporation since April 2014. Mr. Remondi has 25-year history with Navient and its predecessors, in a variety of leadership roles. He served as the Chief Financial Officer of Navient Solutions, Inc. He served as the Chief Executive Officer and President of Sallie Mae, Inc. from May 29, 2013 to April 30, 2014. He served as Chief Financial Officer of SLM Corporation from January 2008 to January 2011 and served as its Principal Accounting Officer until January 2011. He served as the Chief Operating Officer of SLM Corporation from January 2011 to April 30, 2014 and served as its Principal Accounting Officer until April 30, 2014. He served as the Chief Executive Officer of SLM predecessors. Prior to rejoining Navient in 2008, Mr. Remondi served as Portfolio Manager of PAR Capital Management, Inc. from 2005 to 2008 and his responsibilities included managing investments in public companies. He served as an Executive Vice President of Finance and Principal Financial Officer at Navient Corporation since joining from 1999 to August 1, 2005, Senior Vice President from 1999 to 2001 and Executive Vice President since 2001 until 2005. Mr. Remondi served in corporate finance positions with New England Education Loan Marketing Corporation and BayBank Boston. He served as a Senior Vice President at Nellie Mae Corporation from 1990 to 2001 and Chief Financial Officer from 1988 to 1999. He has held various finance positions at Bay Bank Boston from 1984 to 1988. He served as Vice Chairman at Navient Corporation from January 2008 to January 2011. He serves as a Director of Xaverian Brothers High School, Inc. He has been Independent Trustee of CubeSmart, the general Partner of CubeSmart, L.P. since November 05, 2009. He is a Director of Cubesmart Real Estate Investment Trust since 2009. He served as a Director of Navient Corporation since May 30, 2013 until April 30, 2014. He served as a Board Member of SLM Corporation. He serves as the Chairman of Reading is Fundamental. He is a Trustee at Nellie Mae Education Foundation. Mr. Remondi received his Bachelors degree in Economics from Connecticut College.

CEO Compensation
  • Jack's compensation has been consistent with company performance over the past year.
  • Jack's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Navient management team in years:

2
Average Tenure
49
Average Age
  • The average tenure for the Navient management team is less than 2 years, this suggests a new team.
Management Team

Jack Remondi

TITLE
President
COMPENSATION
$6M
AGE
55
TENURE
5.3 yrs

Chris Lown

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
48
TENURE
2.1 yrs

Tim Hynes

TITLE
Executive VP & Chief Information Officer
COMPENSATION
$2M
AGE
48
TENURE
1.3 yrs

Mark Heleen

TITLE
Chief Legal Officer
COMPENSATION
$2M
AGE
55
TENURE
4.2 yrs

John Kane

TITLE
Group President of Business Processing Solutions
COMPENSATION
$3M
AGE
49

Joe Fisher

TITLE
Vice President of Investor Relations & Corporate Development

Steve Hauber

TITLE
Chief Risk & Compliance Officer and Senior VP
AGE
44
TENURE
1.8 yrs

Jennifer Walker

TITLE
Senior VP & Chief Audit Officer
TENURE
1.8 yrs

Robert Crawford

TITLE
Senior VP & Controller
AGE
55
Board of Directors Tenure

Average tenure and age of the Navient board of directors in years:

4.7
Average Tenure
62
Average Age
  • The tenure for the Navient board of directors is about average.
Board of Directors

Bill Diefenderfer

TITLE
Chairman of the Board
COMPENSATION
$317K
AGE
72
TENURE
5.1 yrs

Jack Remondi

TITLE
President
COMPENSATION
$6M
AGE
55
TENURE
5.9 yrs

Jane Thompson

TITLE
Director
COMPENSATION
$208K
AGE
66
TENURE
5.1 yrs

Kate Lehman

TITLE
Director
COMPENSATION
$208K
AGE
43
TENURE
4.4 yrs

Laura Unger

TITLE
Director
COMPENSATION
$223K
AGE
57
TENURE
4.4 yrs

Anna Cabral

TITLE
Director
COMPENSATION
$228K
AGE
58
TENURE
4.3 yrs

Barry Williams

TITLE
Director
COMPENSATION
$208K
AGE
74
TENURE
5.2 yrs

Linda Mills

TITLE
Director
COMPENSATION
$224K
AGE
68
TENURE
4.9 yrs

David Yowan

TITLE
Director
COMPENSATION
$228K
AGE
61
TENURE
2.1 yrs

Fred Arnold

TITLE
Director
AGE
63
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
04. May 18 Buy Canyon Capital Advisors, LLC Company 16. Apr 18 04. May 18 4,993,768 $13.54 $66,477,726
X
Management checks
We assess Navient's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Navient has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Navient Corporation provides education loan management and business processing solutions for education, healthcare, and government clients at the federal, state, and local levels in the United States. It operates in three segments: Federal Education Loans, Consumer Lending, and Business Processing. The company holds and acquires Federal Family Education Loan Program loans that are insured or guaranteed by state or not-for-profit agencies; and performs servicing and asset recovery services on its own loan portfolio, and federal education loans owned by the United States Department of Education and other institutions. It also holds, originates, and acquires consumer loans; and performs servicing activities on its own education loan portfolio, including primarily private education loans, and private education refinance loans. In addition, the company offers revenue cycle management and business processing services; and healthcare services that include revenue cycle outsourcing, accounts receivable management, extended business office support, and consulting engagement for federal, state, and municipal clients; public authorities; and healthcare organizations. Further, it provides customizable solutions for its clients that include non-profit/religious-affiliated hospital systems, teaching hospitals, urban medical centers, for-profit healthcare systems, critical access hospitals, children’s hospitals, and various physician groups. The company was founded in 1973 and is headquartered in Wilmington, Delaware.

Details
Name: Navient Corporation
0K5R
Exchange: LSE
Founded: 1973
$2,980,544,242
244,507,321
Website: http://www.navient.com
Address: Navient Corporation
123 Justison Street,
Wilmington,
Delaware, 19801,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS NAVI Common Stock Nasdaq Global Select US USD 23. Sep 1983
DB 10D Common Stock Deutsche Boerse AG DE EUR 23. Sep 1983
LSE 0K5R Common Stock London Stock Exchange GB USD 23. Sep 1983
Number of employees
Current staff
Staff numbers
6,500
Navient employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/21 22:07
End of day share price update: 2019/04/03 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.