| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 4/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
NNI Stock Overview
Nelnet, Inc. engages in loan servicing, communications, and education technology, services, and payment processing businesses worldwide.
Nelnet Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$89.45 |
| 52 Week High | US$99.79 |
| 52 Week Low | US$67.93 |
| Beta | 0.65 |
| 1 Month Change | -6.22% |
| 3 Month Change | 6.02% |
| 1 Year Change | 25.53% |
| 3 Year Change | 68.46% |
| 5 Year Change | 76.95% |
| Change since IPO | 310.32% |
Recent News & Updates
Student Loan Servicing - Nelnet Is The Big Man On Campus
With some level of student loan forgiveness or cancelation on the horizon, investors should begin preparing for the effects of this policy on the overall economy. Student loan debt in the United States has risen to $1.56 trillion across 44 million Americans. President Biden has extended the CARES Act of 2020 through May 1, 2022. With interest/collections suspended on student loans, many major players in the loan servicing industry have announced that they are done. I use this article to explain the effects of federal policy on the federal loan servicing industry - and focus on its remaining major publicly traded player, Nelnet.
Nelnet (NYSE:NNI) Will Pay A Larger Dividend Than Last Year At US$0.24
Nelnet, Inc.'s ( NYSE:NNI ) dividend will be increasing to US$0.24 on 15th of December. This takes the annual payment...
If You Like EPS Growth Then Check Out Nelnet (NYSE:NNI) Before It's Too Late
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
Shareholder Returns
| NNI | US Consumer Finance | US Market | |
|---|---|---|---|
| 7D | -5.5% | -6.4% | -4.6% |
| 1Y | 25.5% | 10.0% | 7.7% |
Return vs Industry: NNI exceeded the US Consumer Finance industry which returned 13.2% over the past year.
Return vs Market: NNI exceeded the US Market which returned 10.2% over the past year.
Price Volatility
| NNI volatility | |
|---|---|
| NNI Average Weekly Movement | 2.8% |
| Consumer Finance Industry Average Movement | 7.8% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: NNI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: NNI's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1978 | 6,199 | Jeff Noordhoek | https://www.nelnet.com |
Nelnet, Inc. engages in loan servicing, communications, and education technology, services, and payment processing businesses worldwide. The company's Loan Servicing and Systems is involved in loan servicing activities, such as loan conversion, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliation, and claim processing activities for student loan portfolio and third-party clients. This segment also provides student loan servicing software; business process outsourcing services specialized in contact center management, such as inbound calls, outreach campaigns and sales, and interacting with customers through multi-channels.
Nelnet Fundamentals Summary
| NNI fundamental statistics | |
|---|---|
| Market Cap | US$3.42b |
| Earnings (TTM) | US$495.59m |
| Revenue (TTM) | US$1.23b |
6.9x
P/E Ratio2.8x
P/S RatioIs NNI overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| NNI income statement (TTM) | |
|---|---|
| Revenue | US$1.23b |
| Cost of Revenue | US$102.42m |
| Gross Profit | US$1.12b |
| Expenses | US$629.32m |
| Earnings | US$495.59m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 12.96 |
| Gross Margin | 91.66% |
| Net Profit Margin | 40.38% |
| Debt/Equity Ratio | 651.4% |
How did NNI perform over the long term?
See historical performance and comparisonDividends
1.1%
Current Dividend Yield7%
Payout RatioValuation
Is Nelnet undervalued compared to its fair value and its price relative to the market?
6.9x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NNI ($89.45) is trading above our estimate of fair value ($33.11)
Significantly Below Fair Value: NNI is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NNI is good value based on its PE Ratio (6.9x) compared to the US Consumer Finance industry average (7.1x).
PE vs Market: NNI is good value based on its PE Ratio (6.9x) compared to the US market (17x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NNI's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NNI is good value based on its PB Ratio (1.2x) compared to the US Consumer Finance industry average (1.4x).
Future Growth
How is Nelnet forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
-3.5%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if NNI's forecast earnings growth is above the savings rate (2%).
Earnings vs Market: Insufficient data to determine if NNI's earnings are forecast to grow faster than the US market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NNI's revenue is expected to decline over the next 3 years (-3.5% per year).
High Growth Revenue: NNI's revenue is forecast to decline over the next 3 years (-3.5% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NNI's Return on Equity is forecast to be low in 3 years time (7.2%).
Past Performance
How has Nelnet performed over the past 5 years?
11.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NNI has a large one-off gain of $251.1M impacting its September 30 2021 financial results.
Growing Profit Margin: NNI's current net profit margins (40.4%) are higher than last year (14.6%).
Past Earnings Growth Analysis
Earnings Trend: NNI's earnings have grown by 11.6% per year over the past 5 years.
Accelerating Growth: NNI's earnings growth over the past year (210.1%) exceeds its 5-year average (11.6% per year).
Earnings vs Industry: NNI earnings growth over the past year (210.1%) exceeded the Consumer Finance industry 122.5%.
Return on Equity
High ROE: NNI's Return on Equity (17.1%) is considered low.
Financial Health
How is Nelnet's financial position?
Financial Position Analysis
Short Term Liabilities: NNI's short term assets ($20.7B) exceed its short term liabilities ($559.6M).
Long Term Liabilities: NNI's short term assets ($20.7B) exceed its long term liabilities ($19.0B).
Debt to Equity History and Analysis
Debt Level: NNI's net debt to equity ratio (644.7%) is considered high.
Reducing Debt: NNI's debt to equity ratio has reduced from 1280.4% to 651.4% over the past 5 years.
Debt Coverage: NNI's debt is not well covered by operating cash flow (2.3%).
Interest Coverage: Insufficient data to determine if NNI's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is Nelnet current dividend yield, its reliability and sustainability?
1.07%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NNI's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: NNI's dividend (1.07%) is low compared to the top 25% of dividend payers in the US market (3.48%).
Stability and Growth of Payments
Stable Dividend: NNI's dividends per share have been stable in the past 10 years.
Growing Dividend: NNI's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (6.9%), NNI's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of NNI's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.0yrs
Average management tenure
CEO
Jeff Noordhoek (55 yo)
8yrs
Tenure
US$1,568,311
Compensation
Mr. Jeffrey R. Noordhoek, also known as Jeff, is an Independent Director at Federal Home Loan Bank of Topeka since July 1, 2020. He has been the Chief Executive Officer at Nelnet, Inc., since January 1, 20...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD1.57M) is below average for companies of similar size in the US market ($USD5.14M).
Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: NNI's management team is seasoned and experienced (8 years average tenure).
Board Members
Experienced Board: NNI's board of directors are seasoned and experienced ( 14.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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
Nelnet, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Nelnet, Inc.
- Ticker: NNI
- Exchange: NYSE
- Founded: 1978
- Industry: Consumer Finance
- Sector: Diversified Financials
- Implied Market Cap: US$3.421b
- Shares outstanding: 38.24m
- Website: https://www.nelnet.com
Number of Employees
Location
- Nelnet, Inc.
- 121 South 13th Street
- Suite 100
- Lincoln
- Nebraska
- 68508
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 23:41 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.