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

Average dividend payer and fair value.


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

-1.0%

NasdaqGS:NAVI

-1.2%

US Consumer Finance

-0.7%

US Market


1 Year Return

-1.8%

NasdaqGS:NAVI

4.5%

US Consumer Finance

-0.5%

US Market

NAVI underperformed the Consumer Finance industry which returned 5% over the past year.

NAVI underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

NAVIIndustryMarket
7 Day-1.0%-1.2%-0.7%
30 Day-3.1%-2.5%-3.0%
90 Day-3.2%-0.4%0.9%
1 Year3.4%-1.8%6.2%4.5%1.7%-0.5%
3 Year5.3%-8.6%61.3%53.9%39.5%30.4%
5 Year-6.6%-25.5%40.3%30.4%54.1%37.0%

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

19%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Navient's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Navient's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Navient is good value based on earnings compared to the US Consumer Finance industry average.

Navient is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

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

Navient is good value based on assets compared to the US Consumer Finance industry average.


Next Steps

Future Growth

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

-15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Navient's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Navient's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Navient's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Navient's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Navient's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Navient is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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 (54.3% vs -27%)

Navient's earnings growth has exceeded the US Consumer Finance industry average in the past year (54.3% vs 37.7%).


Return on Equity

Navient has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Navient used its assets less efficiently than the US Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

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.


Next Steps

Financial Health

How is Navient's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Navient's level of debt (2846%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (3396.1% vs 2846% today).

Debt is not well covered by operating cash flow (1.3%, 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.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

5.00%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Navient before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Navient's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Navient's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

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

Dividends paid are well covered by earnings (2.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Jack Remondi (56yo)

5.6yrs

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

Jack's remuneration is higher than average for companies of similar size in United States of America.

Jack's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.4yrs

Average Tenure

49.5yo

Average Age

The tenure for the Navient management team is about average.


Board Age and Tenure

3.5yrs

Average Tenure

58.5yo

Average Age

The tenure for the Navient board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$52,325,00025 Jul 19
Canyon Capital Advisors, LLC
EntityCompany
Shares3,500,000
Max PriceUS$14.95
SellUS$1,488,75125 Jul 19
Canyon Capital Advisors, LLC
EntityCompany
Shares97,304
Max PriceUS$15.30
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: 5.6yrs
    • Compensation: US$6.90m
  • Jon Kroehler

    Chief Human Resources Officer

    • Tenure: 0.0yrs
  • Mark Heleen (56yo)

    Chief Legal Officer

    • Tenure: 4.5yrs
    • Compensation: US$1.88m
  • Steve Hauber (44yo)

    Senior VP

    • Tenure: 2.2yrs
    • Compensation: US$1.33m
  • Tim Hynes (49yo)

    Executive Vice President of Consumer Lending

    • Tenure: 2.2yrs
    • Compensation: US$1.95m
  • John Kane (50yo)

    Group President of Business Processing Solutions

    • Tenure: 4.2yrs
    • Compensation: US$2.49m
  • Chris Lown (49yo)

    CFO & Executive VP

    • Tenure: 2.4yrs
    • Compensation: US$3.10m
  • Jennifer Walker

    Senior VP & Chief Audit Officer

    • Tenure: 2.2yrs
  • Joe Fisher

    Vice President of Investor Relations & Corporate Development

    • Tenure: 0.0yrs
  • Paul Hartwick

    Vice President of Corporate Communications

    • Tenure: 0.0yrs

Board Members

  • Jack Remondi (56yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$6.90m
  • Larry Klane (58yo)

    Director

    • Tenure: 0.3yrs
  • Fred Arnold (64yo)

    Director

    • Tenure: 1.0yrs
    • Compensation: US$131.83k
  • Kate Lehman (44yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$245.05k
  • Laura Unger (58yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$250.05k
  • David Yowan (62yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$230.06k
  • Linda Mills (69yo)

    Chairman

    • Tenure: 0.2yrs
    • Compensation: US$236.30k
  • Anna Cabral (59yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$260.06k
  • Marjorie Bowen (54yo)

    Director

    • Tenure: 0.3yrs
  • Jane Thompson (67yo)

    Director

    • Tenure: 5.4yrs
    • 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$3.026b
  • 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 Analysis2019/08/19 00:50
End of Day Share Price2019/08/16 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.