Market Cap
US$1.4b
Last Updated
2020/05/25 09:38 UTC
Data Sources
Company Financials +
Executive Summary
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.
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued average dividend payer.
Similar Companies
Share Price & News
How has Navient's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NAVI's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-4.5%
NAVI
4.1%
US Consumer Finance
1.8%
US Market
1 Year Return
-47.3%
NAVI
-34.4%
US Consumer Finance
3.7%
US Market
Return vs Industry: NAVI underperformed the US Consumer Finance industry which returned -34.4% over the past year.
Return vs Market: NAVI underperformed the US Market which returned 3.7% over the past year.
Shareholder returns
| NAVI | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.5% | 4.1% | 1.8% |
| 30 Day | -0.9% | 9.2% | 5.6% |
| 90 Day | -44.0% | -33.9% | -7.4% |
| 1 Year | -44.5%-47.3% | -33.1%-34.4% | 6.1%3.7% |
| 3 Year | -44.1%-51.9% | -2.6%-7.5% | 28.3%19.8% |
| 5 Year | -54.1%-64.0% | -8.5%-15.6% | 52.4%35.1% |
Price Volatility Vs. Market
How volatile is Navient's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
The Navient (NASDAQ:NAVI) Share Price Is Down 59% So Some Shareholders Are Wishing They Sold1 month ago | Simply Wall St
Navient Corporation (NASDAQ:NAVI) Insiders Have Been Selling1 month ago | Simply Wall St
Why Navient Corporation's (NASDAQ:NAVI) CEO Pay Matters To YouValuation
Is Navient undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NAVI ($6.97) is trading below our estimate of fair value ($16.47)
Significantly Below Fair Value: NAVI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NAVI is good value based on its PE Ratio (4.2x) compared to the Consumer Finance industry average (5.8x).
PE vs Market: NAVI is good value based on its PE Ratio (4.2x) compared to the US market (15.1x).
Price to Earnings Growth Ratio
PEG Ratio: NAVI is good value based on its PEG Ratio (0.2x)
Price to Book Ratio
PB vs Industry: NAVI is good value based on its PB Ratio (0.7x) compared to the US Consumer Finance industry average (0.9x).
Next Steps
Future Growth
How is Navient forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
20.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NAVI's forecast earnings growth (20.4% per year) is above the savings rate (2.2%).
Earnings vs Market: NAVI's earnings (20.4% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NAVI's revenue is expected to decline over the next 3 years (-11.8% per year).
High Growth Revenue: NAVI's revenue is forecast to decline over the next 3 years (-11.8% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NAVI's Return on Equity is forecast to be high in 3 years time (20%)
Next Steps
Past Performance
How has Navient performed over the past 5 years?
-24.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NAVI has high quality earnings.
Growing Profit Margin: NAVI's current net profit margins (24.9%) are lower than last year (26.3%).
Past Earnings Growth Analysis
Earnings Trend: NAVI's earnings have declined by -24.9% per year over the past 5 years.
Accelerating Growth: NAVI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NAVI had negative earnings growth (-8.7%) over the past year, making it difficult to compare to the Consumer Finance industry average (-16.9%).
Return on Equity
High ROE: NAVI's Return on Equity (17.7%) is considered low.
Next Steps
Financial Health
How is Navient's financial position?
Financial Position Analysis
Short Term Liabilities: NAVI's short term assets ($91.7B) exceed its short term liabilities ($9.3B).
Long Term Liabilities: NAVI's short term assets ($91.7B) exceed its long term liabilities ($81.9B).
Debt to Equity History and Analysis
Debt Level: NAVI's debt to equity ratio (4424.3%) is considered high.
Reducing Debt: NAVI's debt to equity ratio has increased from 3368.1% to 4424.3% over the past 5 years.
Debt Coverage: NAVI's debt is not well covered by operating cash flow (1.4%).
Interest Coverage: Insufficient data to determine if NAVI's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is Navient's current dividend yield, its reliability and sustainability?
9.18%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: NAVI's dividend (9.18%) is higher than the bottom 25% of dividend payers in the US market (1.75%).
High Dividend: NAVI's dividend (9.18%) is in the top 25% of dividend payers in the US market (4.73%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, NAVI has been paying a dividend for less than 10 years.
Growing Dividend: NAVI's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (38.6%), NAVI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NAVI's dividends in 3 years are forecast to be well covered by earnings (26% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Jack Remondi (56yo)
6.33yrs
Tenure
US$7,793,321
Compensation
Mr. John F. Remondi, also known as Jack, has been the Chief Executive Officer and President of Navient Corporation since April 2014. Mr. Remondi has 25-year history with Navient and its predecessors, in a ...
CEO Compensation Analysis
Compensation vs Market: Jack's total compensation ($USD7.79M) is above average for companies of similar size in the US market ($USD4.91M).
Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.33yrs | US$7.79m | 0.86% $11.6m | |
| CFO & Executive VP | 3.17yrs | US$3.03m | 0.16% $2.2m | |
| Executive VP and Chief Risk & Compliance Officer | 2.92yrs | US$1.48m | 0.025% $333.0k | |
| Chief Legal Officer | 5.25yrs | US$1.84m | 0.15% $2.1m | |
| Executive VP & Group President of Business Processing Solutions | 4.92yrs | US$2.30m | 0.13% $1.8m | |
| Vice President of Investor Relations & Corporate Development | no data | no data | no data | |
| Vice President of Corporate Communications | no data | no data | no data | |
| Chief Human Resources Officer | no data | no data | no data | |
| Executive Vice President of Consumer Lending | 2.92yrs | US$1.95m | no data | |
| Senior VP & Chief Audit Officer | 2.92yrs | no data | no data |
3.2yrs
Average Tenure
49.5yo
Average Age
Experienced Management: NAVI's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.33yrs | US$7.79m | 0.86% $11.6m | |
| Independent Director | 1yr | US$181.77k | 0.0038% $51.2k | |
| Independent Director | 1.75yrs | US$230.05k | 0.018% $245.6k | |
| Independent Director | 5.5yrs | US$250.05k | 0.031% $415.2k | |
| Independent Director | 5.5yrs | US$250.06k | 0.023% $307.2k | |
| Independent Director | 3.17yrs | US$230.05k | 0.015% $205.5k | |
| Independent Chairman | 0.92yr | US$311.18k | 0.039% $529.7k | |
| Independent Director | 5.42yrs | US$260.05k | 0.0094% $127.0k | |
| Independent Director | 1yr | US$181.78k | no data | |
| Independent Director | 6.17yrs | US$255.06k | 0.0032% $43.6k |
4.3yrs
Average Tenure
58.5yo
Average Age
Experienced Board: NAVI's board of directors are considered experienced (4.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NAVI insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Navient Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Navient Corporation
- Ticker: NAVI
- Exchange: NasdaqGS
- Founded: 1973
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: US$1.351b
- Shares outstanding: 193.83m
- Website: https://www.navient.com
Number of Employees
Location
- Navient Corporation
- 123 Justison Street
- Wilmington
- Delaware
- 19801
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NAVI | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Sep 1983 |
| 10D | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 1983 |
| 0K5R | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Sep 1983 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/25 09:38 |
| End of Day Share Price | 2020/05/22 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.