NasdaqGS:NAVI

Stock Analysis Report

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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.


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

NAVIIndustryMarket
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

Valuation

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

NamePositionTenureCompensationOwnership
John Remondi
President6.33yrsUS$7.79m0.86% $11.6m
Christian Lown
CFO & Executive VP3.17yrsUS$3.03m0.16% $2.2m
Stephen Hauber
Executive VP and Chief Risk & Compliance Officer2.92yrsUS$1.48m0.025% $333.0k
Mark Heleen
Chief Legal Officer5.25yrsUS$1.84m0.15% $2.1m
John Kane
Executive VP & Group President of Business Processing Solutions4.92yrsUS$2.30m0.13% $1.8m
Joe Fisher
Vice President of Investor Relations & Corporate Developmentno datano datano data
Paul Hartwick
Vice President of Corporate Communicationsno datano datano data
Jonathan Kroehler
Chief Human Resources Officerno datano datano data
Timothy Hynes
Executive Vice President of Consumer Lending2.92yrsUS$1.95mno data
Jennifer Walker
Senior VP & Chief Audit Officer2.92yrsno datano 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

NamePositionTenureCompensationOwnership
John Remondi
President6.33yrsUS$7.79m0.86% $11.6m
Larry Klane
Independent Director1yrUS$181.77k0.0038% $51.2k
Frederick Arnold
Independent Director1.75yrsUS$230.05k0.018% $245.6k
Katherine Lehman
Independent Director5.5yrsUS$250.05k0.031% $415.2k
Laura Unger
Independent Director5.5yrsUS$250.06k0.023% $307.2k
David Yowan
Independent Director3.17yrsUS$230.05k0.015% $205.5k
Linda Mills
Independent Chairman0.92yrUS$311.18k0.039% $529.7k
Anna Cabral
Independent Director5.42yrsUS$260.05k0.0094% $127.0k
Marjorie Bowen
Independent Director1yrUS$181.78kno data
Jane Thompson
Independent Director6.17yrsUS$255.06k0.0032% $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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NAVINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1983
10DDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1983
0K5RLSE (London Stock Exchange)YesCommon StockGBUSDSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 09:38
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.