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Nelnet

NYSE:NNI
Snowflake Description

Mediocre balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NNI
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

Nelnet, Inc. provides education related products and services, and loan asset management services worldwide. The last earnings update was 8 days ago. More info.


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NNI Share Price and Events
7 Day Returns
-3.6%
NYSE:NNI
-3.8%
US Consumer Finance
-3.9%
US Market
1 Year Returns
-2.1%
NYSE:NNI
2%
US Consumer Finance
1.4%
US Market
NNI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nelnet (NNI) -3.6% 5% 14.1% -2.1% 72.6% 51.4%
US Consumer Finance -3.8% 1.6% 7.6% 2% 54.4% 29.4%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • NNI underperformed the Consumer Finance industry which returned 2% over the past year.
  • NNI underperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
NNI
Industry
5yr Volatility vs Market

NNI Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nelnet to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nelnet.

NYSE:NNI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $51.62 * 11.4%
$5.87
Book Value of Equity per Share Median Book Value from the past 5 years. $51.62
Discount Rate (Cost of Equity) See below 14.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:NNI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.723 (1 + (1- 21%) (901.29%))
4.263
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (2 * 5.96%)
14.65%

Discounted Cash Flow Calculation for NYSE:NNI using Excess Returns Model Model

The calculations below outline how an intrinsic value for Nelnet is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:NNI Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.4% – 14.65%) * $51.62)
$-1.70
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-1.70 / (14.65% - 2.73%)
$-14.23
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $51.62 + $-14.23
$37.38
NYSE:NNI Discount to Share Price
Calculation Result
Value per share (USD) From above. $37.38
Current discount Discount to share price of $60.82
= -1 x ($60.82 - $37.38) / $37.38
-62.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Nelnet is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nelnet's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nelnet's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:NNI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.82
NYSE:NNI Share Price ** NYSE (2019-05-15) in USD $60.82
United States of America Consumer Finance Industry PE Ratio Median Figure of 29 Publicly-Listed Consumer Finance Companies 8.65x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nelnet.

NYSE:NNI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:NNI Share Price ÷ EPS (both in USD)

= 60.82 ÷ 3.82

15.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nelnet is overvalued based on earnings compared to the US Consumer Finance industry average.
  • Nelnet is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Nelnet's expected growth come at a high price?
Raw Data
NYSE:NNI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.94x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
17.8%per year
United States of America Consumer Finance Industry PEG Ratio Median Figure of 23 Publicly-Listed Consumer Finance Companies 0.72x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Nelnet, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Nelnet's assets?
Raw Data
NYSE:NNI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $58.02
NYSE:NNI Share Price * NYSE (2019-05-15) in USD $60.82
United States of America Consumer Finance Industry PB Ratio Median Figure of 39 Publicly-Listed Consumer Finance Companies 1.58x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:NNI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:NNI Share Price ÷ Book Value per Share (both in USD)

= 60.82 ÷ 58.02

1.05x

* Primary Listing of Nelnet.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nelnet is good value based on assets compared to the US Consumer Finance industry average.
X
Value checks
We assess Nelnet's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Nelnet has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NNI Future Performance

 How is Nelnet expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

  • No analysts cover Nelnet, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nelnet expected to grow at an attractive rate?
  • Nelnet's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Nelnet's earnings growth is expected to exceed the United States of America market average.
  • Nelnet's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:NNI Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:NNI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 17.8%
NYSE:NNI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 7.2%
United States of America Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 5.1%
United States of America Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 7.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:NNI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:NNI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 1,137 1
2019-12-31 1,137 1
NYSE:NNI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 992 73 156
2018-12-31 1,051 271 228
2018-09-30 972 279 254
2018-06-30 928 219 258
2018-03-31 868 332 237
2017-12-31 755 322 173
2017-09-30 855 304 223
2017-06-30 874 325 261
2017-03-31 818 269 259
2016-12-31 862 300 257
2016-09-30 846 343 244
2016-06-30 802 375 208

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nelnet's earnings are expected to grow by 17.8% yearly, however this is not considered high growth (20% yearly).
  • Nelnet's revenue is expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:NNI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Nelnet Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NNI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31
2019-12-31
NYSE:NNI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.82
2018-12-31 5.57
2018-09-30 6.21
2018-06-30 6.27
2018-03-31 5.72
2017-12-31 4.14
2017-09-30 5.30
2017-06-30 6.17
2017-03-31 6.09
2016-12-31 6.02
2016-09-30 5.58
2016-06-30 4.71

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Nelnet will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Nelnet's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nelnet has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NNI Past Performance

  How has Nelnet performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nelnet's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Nelnet's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Nelnet's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Nelnet's 1-year earnings growth is negative, it can't be compared to the US Consumer Finance industry average.
Earnings and Revenue History
Nelnet's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nelnet Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NNI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 992.13 155.58 454.47
2018-12-31 1,051.23 227.91 437.18
2018-09-30 971.51 254.39 404.03
2018-06-30 928.39 257.76 364.06
2018-03-31 868.42 237.07 327.57
2017-12-31 755.34 173.17 302.79
2017-09-30 855.33 223.41 288.70
2017-06-30 874.24 261.40 278.25
2017-03-31 818.26 258.82 264.55
2016-12-31 862.46 256.75 256.82
2016-09-30 846.24 243.72 252.77
2016-06-30 802.23 207.86 252.24
2016-03-31 904.67 251.86 250.11
2015-12-31 871.29 267.98 247.91
2015-09-30 788.61 255.48 243.66
2015-06-30 802.48 291.38 241.54
2015-03-31 789.53 295.49 236.65
2014-12-31 895.15 307.61 228.08
2014-09-30 879.65 301.63 219.59
2014-06-30 909.55 279.56 207.20
2014-03-31 955.27 305.65 200.75
2013-12-31 917.12 300.04 196.17
2013-09-30 915.04 286.34 192.68
2013-06-30 857.86 260.60 190.37
2013-03-31 688.91 201.30 191.64
2012-12-31 713.75 176.65 192.83
2012-09-30 649.35 184.94 191.22
2012-06-30 568.57 195.55 188.96

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Nelnet has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Nelnet used its assets less efficiently than the US Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if Nelnet improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Nelnet's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nelnet has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NNI Health

 How is Nelnet's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Nelnet's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Nelnet is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Nelnet's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Nelnet's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nelnet Company Filings, last reported 1 month ago.

NYSE:NNI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,330.29 21,870.61 75.05
2018-12-31 2,314.78 22,218.74 123.17
2018-09-30 2,327.13 22,255.66 85.58
2018-06-30 2,286.70 22,473.42 69.82
2018-03-31 2,245.23 21,232.95 71.18
2017-12-31 2,165.39 21,363.64 67.57
2017-09-30 2,130.44 22,270.38 255.39
2017-06-30 2,130.41 22,837.19 70.86
2017-03-31 2,127.67 23,673.61 147.91
2016-12-31 2,070.93 24,748.62 157.29
2016-09-30 1,981.10 25,385.93 81.88
2016-06-30 1,906.22 26,501.46 73.85
2016-03-31 1,886.93 27,412.30 74.44
2015-12-31 1,892.16 28,183.50 103.17
2015-09-30 1,835.40 28,910.96 146.24
2015-06-30 1,805.49 28,141.26 232.02
2015-03-31 1,781.49 27,904.79 143.17
2014-12-31 1,725.68 28,071.99 202.70
2014-09-30 1,657.56 28,765.80 156.90
2014-06-30 1,580.13 29,522.93 166.70
2014-03-31 1,513.67 25,621.25 182.73
2013-12-31 1,443.99 25,989.40 136.73
2013-09-30 1,377.91 24,893.99 190.15
2013-06-30 1,319.60 24,730.44 177.61
2013-03-31 1,226.40 25,194.19 121.81
2012-12-31 1,165.21 25,185.86 173.93
2012-09-30 1,176.24 22,981.02 172.14
2012-06-30 1,144.90 23,915.70 113.86
  • Nelnet's level of debt (938.5%) 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 (1694.7% vs 938.5% today).
  • Debt is not well covered by operating cash flow (0.3%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Nelnet's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Nelnet's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nelnet has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NNI Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.18%
Current annual income from Nelnet dividends. Estimated to be 0.99% next year.
If you bought $2,000 of Nelnet shares you are expected to receive $24 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Nelnet's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Nelnet's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment

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

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:NNI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:NNI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.60 1.00
2019-12-31 0.60 1.00
NYSE:NNI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-30 0.720 1.294
2018-11-08 0.720 1.369
2018-08-07 0.640 1.128
2018-02-05 0.640 1.134
2017-11-07 0.640 1.195
2017-08-07 0.560 1.115
2017-02-03 0.560 1.240
2016-11-09 0.560 1.107
2016-08-04 0.480 1.272
2016-02-04 0.480 1.287
2015-11-05 0.480 1.511
2015-08-06 0.400 1.090
2015-02-06 0.400 0.904
2014-11-06 0.400 0.880
2014-08-07 0.400 0.902
2014-05-08 0.400 0.975
2014-02-07 0.400 0.993
2013-11-07 0.400 0.977
2013-08-08 0.400 1.009
2013-05-09 0.400 1.052
2013-02-06 0.400 1.195
2012-11-08 0.400 1.388
2012-08-08 0.400 1.666
2012-05-09 0.400 1.741
2012-02-16 0.400 1.555
2011-11-08 0.400 1.676
2011-08-09 0.400 2.067
2011-05-10 0.400 1.899
2011-02-16 0.280 1.274
2010-08-09 0.280 1.232
2010-05-10 0.280 1.434
2010-02-09 0.280 1.518
2009-11-09 0.280 1.655
2009-08-11 0.000 0.000
2009-08-10 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Nelnet's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.6x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Nelnet's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nelnet afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nelnet has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NNI Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeff Noordhoek
COMPENSATION $1,783,757
AGE 52
TENURE AS CEO 5.3 years
CEO Bio

Mr. Jeffrey R. Noordhoek, also known as Jeff, has been the Chief Executive Officer at Nelnet, Inc., since January 1, 2014. Mr. Noordhoek served as a Vice President of Nelnet Student Loan Corp- 2. He was responsible for leading Nelnet Student Loan Corp- 2, in its securitization and capital markets funding efforts. His primary function was to raise low cost capital and to design creative methods to finance Nelnet Student Loan Corp- 2, student loan portfolios through warehouse lines of credit, long-term securitizations and private debt arrangements. He has been in the capital markets area of Nelnet since 1996. He served as the President at Nelnet, Inc. from January 9, 2006 to 201. He served as Capital Markets Officer of Nelnet Inc. from October 2002 to January 9, 2006 and Executive Director from October 2002 to March 7, 2004. Mr. Noordhoek served as Senior Vice President of NELNI from March 2001 to October 2002, when he became an executive director of NELNI and served as vice president of Nelnet's predecessor prior to that. He was in Nelnet, Inc.'s capital markets area since 1996. Prior to joining us, he served as a Senior Associate for State Street Capital Corporation where he assisted in the establishment of commercial paper conduit financing vehicles. He was a Director of Nelnet Student Loan Corp- 2 since November 2001. Mr. Noordhoek earned a bachelor’s in business administration from the University of Nebraska in 1988 and a master’s of business administration from Boston University in 1996.

CEO Compensation
  • Jeff's compensation has been consistent with company performance over the past year.
  • Jeff's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Nelnet management team in years:

5.3
Average Tenure
54
Average Age
  • The average tenure for the Nelnet management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mike Dunlap

TITLE
Executive Chairman of the Board
COMPENSATION
$1M
AGE
54

Jeff Noordhoek

TITLE
Chief Executive Officer
COMPENSATION
$2M
AGE
52
TENURE
5.3 yrs

Tim Tewes

TITLE
President
COMPENSATION
$1M
AGE
59
TENURE
5.3 yrs

Jim Kruger

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
55
TENURE
5.3 yrs

Terry Heimes

TITLE
Chief Operating Officer
COMPENSATION
$2M
AGE
54
TENURE
5.3 yrs

Phil Morgan

TITLE
Investor Relations Contact

William Munn

TITLE
Corporate Secretary
COMPENSATION
$534K
AGE
50
Board of Directors Tenure

Average tenure and age of the Nelnet board of directors in years:

11.6
Average Tenure
57
Average Age
  • The average tenure for the Nelnet board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Tom Henning

TITLE
Independent Lead Director
COMPENSATION
$184K
AGE
65

Mike Dunlap

TITLE
Executive Chairman of the Board
COMPENSATION
$1M
AGE
54
TENURE
23.3 yrs

Michael Reardon

TITLE
Director
COMPENSATION
$134K
AGE
65
TENURE
15.4 yrs

Kimberly Rath

TITLE
Director
COMPENSATION
$180K
AGE
57
TENURE
11.6 yrs

Kathy Farrell

TITLE
Director
COMPENSATION
$185K
AGE
54
TENURE
11.6 yrs

David Graff

TITLE
Director
COMPENSATION
$169K
AGE
35
TENURE
5 yrs

James Abel

TITLE
Director
COMPENSATION
$171K
AGE
68
TENURE
15.8 yrs

William Cintani

TITLE
Director
COMPENSATION
$179K
AGE
65
TENURE
7 yrs

Preeta Bansal

TITLE
Independent Director
COMPENSATION
$83K
AGE
52
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Nelnet's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nelnet has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NNI News

Simply Wall St News

Investors In Nelnet, Inc. (NYSE:NNI) Should Consider This Data

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Let's dig deeper into whether Nelnet should have a place in your portfolio. … See our latest analysis for Nelnet

Simply Wall St -

Why Nelnet, Inc.'s (NYSE:NNI) CEO Pay Matters To You

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Jeff Noordhoek's Compensation Compare With Similar Sized Companies. … has a market capitalization of US$2.1b, and pays its CEO total annual compensation worth US$1.7m.

Simply Wall St -

Is Nelnet Inc (NYSE:NNI) Worth US$56.70 Based On Intrinsic Value?

Valuing NNI, a financial stock, can be daunting since consumer financials generally have cash flows that are impacted by regulations that are not imposed upon other industries. … These lenders, for example, must hold certain levels of capital in order to maintain a safe cash cushion.

Simply Wall St -

Should You Buy Nelnet Inc (NYSE:NNI) At US$56.95?

saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $63.57 and falling to the lows of $54.19. … A question to answer is whether Nelnet's current trading price of $56.95 reflective of the actual value of the? … Let’s take a look at Nelnet’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Why Nelnet Inc's (NYSE:NNI) CEO Pay Matters To You

Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability

Simply Wall St -

Want To Invest In Nelnet Inc (NYSE:NNI)? Here's How It Performed Lately

After reading Nelnet Inc's (NYSE:NNI) latest earnings update (31 March 2018), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … As a long-term investor I tend to pay attention to earnings trend, rather than a single number at one point in time. … NNI's trailing twelve-month earnings (from 31 March 2018) of US$234.73m has

Simply Wall St -

Nelnet Inc (NYSE:NNI) Investors Are Paying Above The Intrinsic Value

Pricing NNI, a financial stock, can be difficult since consumer finance businesses have cash flows that are affected by regulations that are not imposed upon other sectors. … These lenders, for example, must hold certain levels of capital in order to maintain a safe cash cushion.

Simply Wall St -

NNI Company Info

Description

Nelnet, Inc. provides education related products and services, and loan asset management services 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. The Education Technology, Services, and Payment Processing segment offers managed tuition payment plans and billing services; assistance with financial needs assessment and donor management; school information system software that helps schools automate administrative processes; professional development and educational instruction services; and technology products that aid in teacher and student evaluations. It also offers technology and payments services, including electronic transfer and credit card processing, reporting, billing and invoicing, mobile and virtual terminal solutions, and specialized integrations to business software; and mobile first technology focused on increasing engagement, online giving, and communication for church and not-for-profit customers. Its Communications segment fiber optic service to homes and businesses for Internet, television, and telephone services. Its data services include high-speed Internet access; telephone services comprise local and long distance telephone service, hostedPBX services, and other basic services. Its Asset Generation and Management segment acquires, manages, and owns loan assets. It also provides investment advisory services. The company was founded in 1978 and is headquartered in Lincoln, Nebraska.

Details
Name: Nelnet, Inc.
NNI
Exchange: NYSE
Founded: 1978
$2,426,591,494
39,897,920
Website: http://www.nelnet.net
Address: Nelnet, Inc.
121 South 13th Street,
Suite 100,
Lincoln,
Nebraska, 68508,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE NNI Class A Common Stock New York Stock Exchange US USD 11. Dec 2003
DB NIJ Class A Common Stock Deutsche Boerse AG DE EUR 11. Dec 2003
Number of employees
Current staff
Staff numbers
6,200
Nelnet employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 01:42
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/05/09
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.