NasdaqGS:NAVI

Stock Analysis Report

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

Fundamentals

Good value 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


Market Performance


7 Day Return

2.9%

NAVI

1.7%

US Consumer Finance

0.07%

US Market


1 Year Return

2.5%

NAVI

9.9%

US Consumer Finance

8.9%

US Market

Return vs Industry: NAVI underperformed the US Consumer Finance industry which returned 9.9% over the past year.

Return vs Market: NAVI underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

NAVIIndustryMarket
7 Day2.9%1.7%0.07%
30 Day-9.3%-1.2%-0.3%
90 Day-14.3%-7.2%-1.6%
1 Year8.1%2.5%11.8%9.9%11.3%8.9%
3 Year6.7%-7.5%55.7%48.2%46.3%36.8%
5 Year-20.6%-36.9%38.4%28.3%62.1%44.3%

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?

25.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NAVI ($12.15) is trading below our estimate of fair value ($16.4)

Significantly Below Fair Value: NAVI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NAVI is good value based on its PE Ratio (6.5x) compared to the Consumer Finance industry average (8.5x).

PE vs Market: NAVI is good value based on its PE Ratio (6.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: NAVI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NAVI is good value based on its PB Ratio (0.8x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is Navient forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAVI's earnings are forecast to decline over the next 3 years (-8.1% per year).

Earnings vs Market: NAVI's earnings are forecast to decline over the next 3 years (-8.1% per year).

High Growth Earnings: NAVI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NAVI's revenue is expected to decline over the next 3 years (-7.8% per year).

High Growth Revenue: NAVI's revenue is forecast to decline over the next 3 years (-7.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NAVI's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has Navient performed over the past 5 years?

-27.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NAVI's earnings have declined by -27% per year over the past 5 years.

Accelerating Growth: NAVI's earnings growth over the past year (54.3%) exceeds its 5-year average (-27% per year).

Earnings vs Industry: NAVI earnings growth over the past year (54.3%) exceeded the Consumer Finance industry 25.5%.


Return on Equity

High ROE: NAVI's Return on Equity (14.1%) is considered low.


Return on Assets

ROA vs Industry: NAVI's Return on Assets is below or equal to the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate NAVI's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Navient's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: NAVI has a low level of unsold assets or inventory.

Debt Coverage by Assets: NAVI's debt is covered by short term assets (assets are 1.025840x debt).


Financial Institutions Analysis

Asset Level: NAVI's level of assets compared to its equity is very high.

Allowance for Bad Loans: Insufficient data to determine if NAVI has a sufficient allowance for bad loans.

Low Risk Liabilities: NAVI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if NAVI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NAVI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if NAVI has an appropriate level of bad loans.


Next Steps

Dividend

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

5.27%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years5.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NAVI's dividend (5.27%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NAVI's dividend (5.27%) is in the top 25% of dividend payers in the US market (3.68%)

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 (34%), 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 (28.8% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Jack Remondi (56yo)

5.8yrs

Tenure

US$6,904,105

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 ($USD6.90M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.6yrs

Average Tenure

49.5yo

Average Age

Experienced Management: NAVI's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

58.5yo

Average Age

Experienced Board: NAVI's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,488,75125 Jul 19
Canyon Capital Advisors, LLC
EntityCompany
Shares97,304
Max PriceUS$15.30
SellUS$52,325,00025 Jul 19
Canyon Capital Advisors, LLC
EntityCompany
Shares3,500,000
Max PriceUS$14.95
SellUS$122,67418 May 19
Stephen Hauber
EntityIndividual
Role
Chief Compliance Officer
Senior VP
Shares9,000
Max PriceUS$13.63

Ownership Breakdown


Management Team

  • Jack Remondi (56yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$6.90m
  • Jon Kroehler

    Chief Human Resources Officer

    • Tenure: 0yrs
  • Mark Heleen (56yo)

    Chief Legal Officer

    • Tenure: 4.7yrs
    • Compensation: US$1.88m
  • Steve Hauber (44yo)

    Senior VP

    • Tenure: 2.3yrs
    • Compensation: US$1.33m
  • Tim Hynes (49yo)

    Executive Vice President of Consumer Lending

    • Tenure: 2.3yrs
    • Compensation: US$1.95m
  • John Kane (50yo)

    Group President of Business Processing Solutions

    • Tenure: 4.3yrs
    • Compensation: US$2.49m
  • Chris Lown (49yo)

    CFO & Executive VP

    • Tenure: 2.6yrs
    • Compensation: US$3.10m
  • Jennifer Walker

    Senior VP & Chief Audit Officer

    • Tenure: 2.3yrs
  • Joe Fisher

    Vice President of Investor Relations & Corporate Development

    • Tenure: 0yrs
  • Paul Hartwick

    Vice President of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Jack Remondi (56yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$6.90m
  • Larry Klane (58yo)

    Director

    • Tenure: 0.4yrs
  • Fred Arnold (64yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$131.83k
  • Kate Lehman (44yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: US$245.05k
  • Laura Unger (58yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$250.05k
  • David Yowan (62yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$230.06k
  • Linda Mills (69yo)

    Chairman

    • Tenure: 0.3yrs
    • Compensation: US$236.30k
  • Anna Cabral (59yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$260.06k
  • Marjorie Bowen (54yo)

    Director

    • Tenure: 0.4yrs
  • Jane Thompson (67yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$248.81k

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$2.801b
  • Shares outstanding: 230.49m
  • 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 o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:24
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.