Market Cap
US$1.8b
Last Updated
2020/04/07 02:35 UTC
Data Sources
Company Financials +
Executive Summary
Nelnet, Inc. engages in loan servicing, communications, and education technology, services, and payment processing businesses worldwide.
Snowflake Analysis
Average dividend payer with mediocre balance sheet.
Similar Companies
Share Price & News
How has Nelnet's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NNI's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-2.4%
NNI
3.1%
US Consumer Finance
2.4%
US Market
1 Year Return
-21.7%
NNI
-37.7%
US Consumer Finance
-10.0%
US Market
Return vs Industry: NNI exceeded the US Consumer Finance industry which returned -46.9% over the past year.
Return vs Market: NNI underperformed the US Market which returned -15.9% over the past year.
Shareholder returns
| NNI | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.4% | 3.1% | 2.4% |
| 30 Day | -11.4% | -28.8% | -11.0% |
| 90 Day | -26.2% | -42.3% | -19.4% |
| 1 Year | -20.8%-21.7% | -36.6%-37.7% | -8.1%-10.0% |
| 3 Year | 3.4%-0.3% | -15.8%-20.0% | 17.3%9.6% |
| 5 Year | 3.3%-2.9% | -17.8%-23.9% | 36.1%21.1% |
Price Volatility Vs. Market
How volatile is Nelnet's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Income Investors Should Know That Nelnet, Inc. (NYSE:NNI) Goes Ex-Dividend Soon1 month ago | Simply Wall St
Is Nelnet, Inc.'s (NYSE:NNI) CEO Overpaid Relative To Its Peers?3 months ago | Simply Wall St
If You Had Bought Nelnet (NYSE:NNI) Shares Five Years Ago You'd Have Made 29%Valuation
Is Nelnet undervalued compared to its fair value and its price relative to the market?
12.51x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NNI ($44.31) is trading above our estimate of fair value ($42.01)
Significantly Below Fair Value: NNI is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NNI is poor value based on its PE Ratio (12.5x) compared to the Consumer Finance industry average (3.7x).
PE vs Market: NNI is poor value based on its PE Ratio (12.5x) compared to the US market (12.2x).
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 overvalued based on its PB Ratio (0.7x) compared to the US Consumer Finance industry average (0.6x).
Next Steps
Future Growth
How is Nelnet forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
6.4%
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 (1.7%).
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 (6.4% per year) is forecast to grow slower than the US market (7% per year).
High Growth Revenue: NNI's revenue (6.4% per year) is forecast to grow slower than 20% 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 (7.5%).
Next Steps
Past Performance
How has Nelnet performed over the past 5 years?
-12.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NNI has high quality earnings.
Growing Profit Margin: NNI's current net profit margins (13.8%) are lower than last year (21.7%).
Past Earnings Growth Analysis
Earnings Trend: NNI's earnings have declined by -12.4% per year over the past 5 years.
Accelerating Growth: NNI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NNI had negative earnings growth (-37.8%) over the past year, making it difficult to compare to the Consumer Finance industry average (8.6%).
Return on Equity
High ROE: NNI's Return on Equity (5.9%) is considered low.
Next Steps
Financial Health
How is Nelnet's financial position?
Financial Position Analysis
Short Term Liabilities: NNI's short term assets ($22.8B) exceed its short term liabilities ($495.2M).
Long Term Liabilities: NNI's short term assets ($22.8B) exceed its long term liabilities ($20.8B).
Debt to Equity History and Analysis
Debt Level: NNI's debt to equity ratio (858.6%) is considered high.
Reducing Debt: NNI's debt to equity ratio has reduced from 1626% to 858.6% over the past 5 years.
Debt Coverage: NNI's debt is not well covered by operating cash flow (1.5%).
Interest Coverage: Insufficient data to determine if NNI's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is Nelnet's current dividend yield, its reliability and sustainability?
1.81%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NNI's dividend (1.81%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.07%).
High Dividend: NNI's dividend (1.81%) is low compared to the top 25% of dividend payers in the US market (5.82%).
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 (20.9%), NNI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NNI's dividends in 3 years are forecast to be thoroughly covered by earnings (12% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.3yrs
Average management tenure
CEO
Jeff Noordhoek (53yo)
6.25s
Tenure
US$1,783,757
Compensation
Mr. Jeffrey R. Noordhoek, also known as Jeff, has been the Chief Executive Officer at Nelnet, Inc., since January 1, 2014. Mr. Noordhoek served as a Vice President of Nelnet Student Loan Corp- 2. He was re ...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD1.78M) is below average for companies of similar size in the US market ($USD4.79M).
Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 24.25yrs | US$1.22m | 21.82% $384.2m | |
| Chief Executive Officer | 6.25yrs | US$1.78m | 1.31% $23.0m | |
| President | 6.25yrs | US$1.28m | 0.15% $2.6m | |
| Chief Financial Officer | 6.25yrs | US$1.27m | 0.40% $7.1m | |
| Chief Operating Officer | 6.25yrs | US$1.72m | 0.54% $9.5m | |
| Investor Relations Contact | no data | no data | no data | |
| Corporate Secretary | no data | US$534.16k | 0.074% $1.3m |
6.3yrs
Average Tenure
55yo
Average Age
Experienced Management: NNI's management team is seasoned and experienced (6.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 24.25yrs | US$1.22m | 21.82% $384.2m | |
| Independent Director | 12.5yrs | US$180.21k | no data | |
| Independent Director | 16.67yrs | US$170.94k | 0.027% $475.2k | |
| Independent Lead Director | no data | US$183.65k | 0.041% $722.2k | |
| Independent Director | 7.92yrs | US$179.21k | 0.0099% $175.0k | |
| Independent Director | 12.5yrs | US$184.74k | 0.021% $376.4k | |
| Independent Director | 5.92yrs | US$168.94k | 0.041% $718.3k | |
| Independent Director | 1.42yrs | US$82.61k | 0.010% $177.5k | |
| Independent Director | 0.083yr | no data | no data |
10.2yrs
Average Tenure
58yo
Average Age
Experienced Board: NNI's board of directors are seasoned and experienced ( 10.2 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Nelnet, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Nelnet, Inc.
- Ticker: NNI
- Exchange: NYSE
- Founded: 1978
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: US$1.761b
- Shares outstanding: 39.73m
- Website: https://www.nelnet.com
Number of Employees
Location
- Nelnet, Inc.
- 121 South 13th Street
- Suite 100
- Lincoln
- Nebraska
- 68508
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NNI | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Dec 2003 |
| NIJ | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Dec 2003 |
Biography
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. The Education Technology, Services, and Payment Processing segment offers financial management services; assistance with financial needs assessment; school information system software that automates 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/07 02:35 |
| End of Day Share Price | 2020/04/06 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.