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NNI

NelnetNYSE:NNI Stock Report

Market Cap

US$3.1b

7D

0.6%

1Y

31.5%

Updated

28 Sep, 2021

Data

Company Financials +
NNI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends3/6

NNI Overview

Nelnet, Inc. engages in loan servicing, communications, and education technology, services, and payment processing businesses worldwide.

Nelnet Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nelnet
Historical stock prices
Current Share PriceUS$79.81
52 Week HighUS$59.19
52 Week LowUS$81.63
Beta0.67
1 Month Change-0.56%
3 Month Change6.09%
1 Year Change31.53%
3 Year Change39.99%
5 Year Change97.35%
Change since IPO266.10%

Recent News & Updates

Shareholder Returns

NNIUS Consumer FinanceUS Market
7D0.6%8.2%2.0%
1Y31.5%93.2%32.8%

Return vs Industry: NNI underperformed the US Consumer Finance industry which returned 93.2% over the past year.

Return vs Market: NNI underperformed the US Market which returned 32.8% over the past year.

Price Volatility

Is NNI's price volatile compared to industry and market?
NNI volatility
NNI Beta0.67
Industry Beta1.5
Market Beta1

Stable Share Price: NNI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: NNI's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19786,199Jeff Noordhoekhttps://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

How do Nelnet's earnings and revenue compare to its market cap?
NNI fundamental statistics
Market CapUS$3.09b
Earnings (TTM)US$513.96m
Revenue (TTM)US$1.24b

5.9x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NNI income statement (TTM)
RevenueUS$1.24b
Cost of RevenueUS$102.24m
Gross ProfitUS$1.14b
ExpensesUS$623.95m
EarningsUS$513.96m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)13.45
Gross Margin91.76%
Net Profit Margin41.44%
Debt/Equity Ratio685.2%

How did NNI perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

6%

Payout Ratio

Valuation

Is Nelnet undervalued compared to its fair value and its price relative to the market?

5.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NNI ($79.81) is trading above our estimate of fair value ($30.35)

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 (5.9x) compared to the US Consumer Finance industry average (8x).

PE vs Market: NNI is good value based on its PE Ratio (5.9x) compared to the US market (18.1x).


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 (1.1x) compared to the US Consumer Finance industry average (1.7x).


Future Growth

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

-4.1%

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 (-4.1% per year).

High Growth Revenue: NNI's revenue is forecast to decline over the next 3 years (-4.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NNI's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Nelnet performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NNI has a large one-off gain of $269.7M impacting its June 30 2021 financial results.

Growing Profit Margin: NNI's current net profit margins (41.4%) are higher than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: NNI's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: NNI's earnings growth over the past year (322.9%) exceeds its 5-year average (6.9% per year).

Earnings vs Industry: NNI earnings growth over the past year (322.9%) exceeded the Consumer Finance industry 126.5%.


Return on Equity

High ROE: NNI's Return on Equity (18%) is considered low.


Financial Health

How is Nelnet's financial position?


Financial Position Analysis

Short Term Liabilities: NNI's short term assets ($21.5B) exceed its short term liabilities ($510.9M).

Long Term Liabilities: NNI's short term assets ($21.5B) exceed its long term liabilities ($19.7B).


Debt to Equity History and Analysis

Debt Level: NNI's debt to equity ratio (685.2%) is considered high.

Reducing Debt: NNI's debt to equity ratio has reduced from 1389% to 685.2% over the past 5 years.

Debt Coverage: NNI's debt is not well covered by operating cash flow (2.6%).

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?

1.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NNI's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: NNI's dividend (1.1%) is low compared to the top 25% of dividend payers in the US market (3.57%).


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 (6.5%), NNI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.7yrs

Average management tenure


CEO

Jeff Noordhoek (55 yo)

7.67yrs

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 ($USD1.57M) is below average for companies of similar size in the US market ($USD5.22M).

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 (7.7 years average tenure).


Board Members

Experienced Board: NNI's board of directors are seasoned and experienced ( 13.9 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
  • Market Cap: US$3.095b
  • Shares outstanding: 38.22m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/28 22:22
End of Day Share Price2021/09/28 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.