(NNI) Nelnet - Ratings and Ratios
Loan Service, Education Tech, Payment Platform, School Software, Bank
NNI EPS (Earnings per Share)
NNI Revenue
Description: NNI Nelnet July 29, 2025
Nelnet Inc (NYSE:NNI) is a multifaceted financial services company operating in the consumer finance sector, providing a range of services including loan servicing, education technology, and payment processing. The company is segmented into four main business areas: Loan Servicing and Systems, Education Technology Services and Payments, Asset Generation and Management, and Nelnet Bank.
The Loan Servicing and Systems segment is a significant player, offering comprehensive loan management services including conversion, application processing, and customer service. This segment also provides software solutions for student loan servicing and business process outsourcing, highlighting the companys technological capabilities and customer interaction expertise.
The Education Technology Services and Payments segment showcases Nelnets diversification into education technology, offering financial management services, school information system software, and tuition payment plans. This segment underscores the companys role in facilitating educational institutions administrative and financial processes, as well as providing payment solutions.
From an investment perspective, key performance indicators (KPIs) such as Return on Equity (RoE) of 5.79% and a forward Price-to-Earnings (P/E) ratio of 18.25 suggest a relatively stable financial performance. The companys market capitalization stands at approximately $4.35 billion, indicating a considerable market presence.
Analyzing Nelnets business segments and financial metrics, its evident that the company has a diversified revenue stream across loan servicing, education technology, and banking. To further assess its investment potential, examining metrics such as the Debt-to-Equity ratio, Interest Coverage ratio, and the growth rate of its loan portfolio and education technology services could provide deeper insights into its financial health and operational efficiency.
Additionally, considering the consumer finance industrys trends and the competitive landscape, Nelnets strategic positioning and adaptability to regulatory changes and technological advancements will be crucial. The companys investment in Nelnet Bank and its solar engineering, procurement, and construction businesses also indicate a diversification strategy that could impact its long-term profitability and growth.
NNI Stock Overview
| Market Cap in USD | 4,678m |
| Sub-Industry | Consumer Finance |
| IPO / Inception | 2003-12-11 |
NNI Stock Ratings
| Growth Rating | 81.6% |
| Fundamental | 55.5% |
| Dividend Rating | 55.1% |
| Return 12m vs S&P 500 | -0.10% |
| Analyst Rating | 3.0 of 5 |
NNI Dividends
| Dividend Yield 12m | 0.87% |
| Yield on Cost 5y | 1.85% |
| Annual Growth 5y | 8.11% |
| Payout Consistency | 86.5% |
| Payout Ratio | 12.4% |
NNI Growth Ratios
| Growth Correlation 3m | 57.8% |
| Growth Correlation 12m | 78.3% |
| Growth Correlation 5y | 91.1% |
| CAGR 5y | 15.90% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.86 |
| CAGR/Mean DD 3y (Pain Ratio) | 2.23 |
| Sharpe Ratio 12m | 0.30 |
| Alpha | 3.80 |
| Beta | 0.836 |
| Volatility | 21.25% |
| Current Volume | 36.5k |
| Average Volume 20d | 63.6k |
| Stop Loss | 127.4 (-3.1%) |
| Signal | -0.20 |
Piotroski VR‑10 (Strict, 0-10) 4.5
| Net Income (329.6m TTM) > 0 and > 6% of Revenue (6% = 117.2m TTM) |
| FCFTA 0.00 (>2.0%) and ΔFCFTA -3.13pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -27.33% (prev 1295 %; Δ -1323 pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.04 (>3.0%) and CFO 490.5m > Net Income 329.6m (YES >=105%, WARN >=100%) |
| Net Debt (7.68b) to EBITDA (646.3m) ratio: 11.88 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.74 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (36.5m) change vs 12m ago -0.11% (target <= -2.0% for YES) |
| Gross Margin 67.18% (prev 52.48%; Δ 14.70pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 13.84% (prev 10.78%; Δ 3.06pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 1.00 (EBITDA TTM 646.3m / Interest Expense TTM 567.5m) >= 6 (WARN >= 3) |
Altman Z'' 1.23
| (A) -0.04 = (Total Current Assets 1.49b - Total Current Liabilities 2.02b) / Total Assets 13.71b |
| (B) 0.26 = Retained Earnings (Balance) 3.58b / Total Assets 13.71b |
| (C) 0.04 = EBIT TTM 567.6m / Avg Total Assets 14.11b |
| (D) 0.35 = Book Value of Equity 3.57b / Total Liabilities 10.23b |
| Total Rating: 1.23 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 55.53
| 1. Piotroski 4.50pt = -0.50 |
| 2. FCF Yield 0.46% = 0.23 |
| 3. FCF Margin 2.68% = 0.67 |
| 4. Debt/Equity 2.21 = 0.45 |
| 5. Debt/Ebitda 11.88 = -2.50 |
| 6. ROIC - WACC (= -0.58)% = -0.73 |
| 7. RoE 9.67% = 0.81 |
| 8. Rev. Trend 78.36% = 5.88 |
| 9. EPS Trend 24.48% = 1.22 |
What is the price of NNI shares?
Over the past week, the price has changed by +2.46%, over one month by +4.01%, over three months by +7.76% and over the past year by +17.52%.
Is Nelnet a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of NNI is around 141.32 USD . This means that NNI is currently overvalued and has a potential downside of 7.52%.
Is NNI a buy, sell or hold?
- Strong Buy: 0
- Buy: 0
- Hold: 1
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the NNI price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 130 | -1.1% |
| Analysts Target Price | 130 | -1.1% |
| ValueRay Target Price | 151.5 | 15.2% |
NNI Fundamental Data Overview October 20, 2025
P/E Trailing = 14.3053
P/E Forward = 15.748
P/S = 3.0
P/B = 1.3296
P/EG = -1.93
Beta = 0.836
Revenue TTM = 1.95b USD
EBIT TTM = 567.6m USD
EBITDA TTM = 646.3m USD
Long Term Debt = 7.28b USD (from longTermDebt, last quarter)
Short Term Debt = 621.3m USD (from shortTermDebt, last quarter)
Debt = 7.90b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 7.68b USD (from netDebt column, last quarter)
Enterprise Value = 11.27b USD (4.68b + Debt 7.90b - CCE 1.31b)
Interest Coverage Ratio = 1.00 (Ebit TTM 567.6m / Interest Expense TTM 567.5m)
FCF Yield = 0.46% (FCF TTM 52.3m / Enterprise Value 11.27b)
FCF Margin = 2.68% (FCF TTM 52.3m / Revenue TTM 1.95b)
Net Margin = 16.88% (Net Income TTM 329.6m / Revenue TTM 1.95b)
Gross Margin = 67.18% ((Revenue TTM 1.95b - Cost of Revenue TTM 640.9m) / Revenue TTM)
Gross Margin QoQ = 75.59% (prev 69.87%)
Tobins Q-Ratio = 0.82 (Enterprise Value 11.27b / Total Assets 13.71b)
Interest Expense / Debt = 1.68% (Interest Expense 132.9m / Debt 7.90b)
Taxrate = 25.07% (59.5m / 237.4m)
NOPAT = 425.3m (EBIT 567.6m * (1 - 25.07%))
Current Ratio = 0.74 (Total Current Assets 1.49b / Total Current Liabilities 2.02b)
Debt / Equity = 2.21 (Debt 7.90b / totalStockholderEquity, last quarter 3.57b)
Debt / EBITDA = 11.88 (Net Debt 7.68b / EBITDA 646.3m)
Debt / FCF = 146.8 (Net Debt 7.68b / FCF TTM 52.3m)
Total Stockholder Equity = 3.41b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.40% (Net Income 329.6m / Total Assets 13.71b)
RoE = 9.67% (Net Income TTM 329.6m / Total Stockholder Equity 3.41b)
RoCE = 5.31% (EBIT 567.6m / Capital Employed (Equity 3.41b + L.T.Debt 7.28b))
RoIC = 3.59% (NOPAT 425.3m / Invested Capital 11.83b)
WACC = 4.17% (E(4.68b)/V(12.58b) * Re(9.10%) + D(7.90b)/V(12.58b) * Rd(1.68%) * (1-Tc(0.25)))
Discount Rate = 9.10% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -1.17%
[DCF Debug] Terminal Value 66.21% ; FCFE base≈234.8m ; Y1≈156.6m ; Y5≈73.9m
Fair Price DCF = 47.76 (DCF Value 1.22b / Shares Outstanding 25.5m; 5y FCF grow -38.87% → 3.0% )
EPS Correlation: 24.48 | EPS CAGR: -53.24% | SUE: -1.16 | # QB: 0
Revenue Correlation: 78.36 | Revenue CAGR: 23.41% | SUE: 0.83 | # QB: 0
Additional Sources for NNI Stock
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