(NNI) Nelnet - Overview
Sector: Financial Services | Industry: Credit Services | Exchange: NYSE (USA) | Market Cap: 4.612m USD | Total Return: 11.3% in 12m
Avg Turnover: 17.5M
EPS Trend: 82.7%
Qual. Beats: 0
Rev. Trend: 67.7%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Idiosyncratic Leader
Nelnet Inc. (NNI) is a diversified financial services and technology firm headquartered in Lincoln, Nebraska. The company operates through four primary segments: Loan Servicing and Systems, Education Technology Services and Payments, Asset Generation and Management, and Nelnet Bank. Its business model leverages a transition from its historical focus on student loan interest income toward fee-based revenue from education software and business process outsourcing.
The Loan Servicing and Systems segment manages administrative tasks and contact center operations for third-party loan portfolios. In the Education Technology sector, Nelnet provides K-12 and higher education institutions with tuition payment processing, school management software, and learning management systems. This sector is characterized by high switching costs for educational institutions, which often leads to stable, recurring revenue streams for established service providers.
Nelnet Bank operates as an internet-based industrial bank, while the Asset Generation and Management segment focuses on the acquisition and management of loan assets. The company also maintains interests in renewable energy through solar engineering and construction, as well as real estate and reinsurance. To better understand these diverse revenue streams, investors should examine the detailed financial breakdowns available on ValueRay.
Founded in 1977, Nelnet occupies a unique position within the Consumer Finance sub-industry by combining traditional banking services with specialized software-as-a-service (SaaS) solutions for the education market. This diversification helps mitigate risks associated with legislative changes in the federal student loan landscape.
- Federal student loan servicing contract renewals impact long-term recurring revenue stability
- Net interest margin fluctuations at Nelnet Bank affect overall corporate profitability
- Education technology adoption rates in K-12 markets drive high-margin software growth
- Runoff of legacy student loan portfolios reduces core asset generation cash flows
- Expansion into solar energy and real estate diversifies capital allocation outcomes
| Net Income: 417.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 1.32 > 1.0 |
| NWC/Revenue: 74.62% < 20% (prev -43.43%; Δ 118.0% < -1%) |
| CFO/TA 0.03 > 3% & CFO 404.9m > Net Income 417.0m |
| Net Debt (7.60b) to EBITDA (787.4m): 9.65 < 3 |
| Current Ratio: 337.1 > 1.5 & < 3 |
| Outstanding Shares: last quarter (36.1m) vs 12m ago -1.10% < -2% |
| Gross Margin: 80.81% > 18% (prev 0.63%; Δ 8.02k% > 0.5%) |
| Asset Turnover: 15.06% > 50% (prev 12.61%; Δ 2.45% > 0%) |
| Interest Coverage Ratio: 1.50 > 6 (EBITDA TTM 787.4m / Interest Expense TTM 481.4m) |
| A: 0.11 (Total Current Assets 1.60b - Total Current Liabilities 4.74m) / Total Assets 14.2b |
| B: 0.26 (Retained Earnings 3.73b / Total Assets 14.2b) |
| C: 0.05 (EBIT TTM 723.7m / Avg Total Assets 14.2b) |
| D: 0.35 (Book Value of Equity 3.73b / Total Liabilities 10.6b) |
| Altman-Z'' = 2.31 = BBB |
| DSRI: 80.49 (Receivables 18.7b/194.1m, Revenue 2.14b/1.79b) |
| GMI: 0.77 (GM 80.81% / 62.55%) |
| AQI: 0.99 (AQ_t 0.88 / AQ_t-1 0.89) |
| SGI: 1.19 (Revenue 2.14b / 1.79b) |
| TATA: 0.00 (NI 417.0m - CFO 404.9m) / TA 14.2b) |
| Beneish M = 62.32 (Cap -4..+1) = D |
As of May 26, 2026, the stock is trading at USD 128.95 with a total of 136,400 shares traded.
Over the past week, the price has changed by +2.83%,
over one month by -9.06%,
over three months by -1.13% and
over the past year by +11.26%.
Nelnet has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold NNI.
- StrongBuy: 0
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 135 | 4.7% |
P/E Trailing = 11.1609
P/E Forward = 16.2866
P/S = 2.8019
P/B = 1.2404
P/EG = 0.4642
Revenue TTM = 2.14b USD
EBIT TTM = 723.7m USD
EBITDA TTM = 787.4m USD
Long Term Debt = 6.46b USD (from longTermDebt, last quarter)
Short Term Debt = 1.24b USD (from shortLongTermDebt, last quarter)
Debt = 7.72b USD (from shortLongTermDebtTotal, last quarter) + Leases 15.9m
Net Debt = 7.60b USD (calculated: Debt 7.72b - CCE 118.7m)
Enterprise Value = 12.2b USD (4.61b + Debt 7.72b - CCE 118.7m)
Interest Coverage Ratio = 1.50 (Ebit TTM 723.7m / Interest Expense TTM 481.4m)
EV/FCF = 27.27x (Enterprise Value 12.2b / FCF TTM 447.7m)
FCF Yield = 3.67% (FCF TTM 447.7m / Enterprise Value 12.2b)
FCF Margin = 20.95% (FCF TTM 447.7m / Revenue TTM 2.14b)
Net Margin = 19.52% (Net Income TTM 417.0m / Revenue TTM 2.14b)
Gross Margin = 80.81% ((Revenue TTM 2.14b - Cost of Revenue TTM 410.1m) / Revenue TTM)
Gross Margin QoQ = 86.61% (prev 85.76%)
Tobins Q-Ratio = 0.86 (Enterprise Value 12.2b / Total Assets 14.2b)
Interest Expense / Debt = 6.24% (Interest Expense 481.4m / Debt 7.72b)
Taxrate = 26.51% (20.1m / 75.7m)
NOPAT = 531.8m (EBIT 723.7m * (1 - 26.51%))
Current Ratio = 73.84 (Total Current Assets 1.60b / Total Current Liabilities 21.7m)
Debt / Equity = 2.07 (Debt 7.72b / totalStockholderEquity, last quarter 3.73b)
Debt / EBITDA = 9.65 (Net Debt 7.60b / EBITDA 787.4m)
Debt / FCF = 16.97 (Net Debt 7.60b / FCF TTM 447.7m)
Total Stockholder Equity = 3.66b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.94% (Net Income 417.0m / Total Assets 14.2b)
RoE = 11.39% (Net Income TTM 417.0m / Total Stockholder Equity 3.66b)
RoCE = 7.15% (EBIT 723.7m / Capital Employed (Equity 3.66b + L.T.Debt 6.46b))
RoIC = 3.75% (NOPAT 531.8m / Invested Capital 14.2b)
WACC = 5.79% (E(4.61b)/V(12.3b) * Re(7.81%) + D(7.72b)/V(12.3b) * Rd(6.24%) * (1-Tc(0.27)))
Discount Rate = 7.81% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -68.89 | Cagr: -1.53%
[DCF] Terminal Value 77.97% ; FCFF base≈373.0m ; Y1≈427.6m ; Y5≈629.4m
[DCF] Fair Price = 74.03 (EV 9.47b - Net Debt 7.60b = Equity 1.87b / Shares 25.3m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 82.66 | EPS CAGR: 65.11% | SUE: -0.51 | # QB: 0
Revenue Correlation: 67.70 | Revenue CAGR: 4.11% | SUE: 0.31 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.31 | Chg30d=+0.00% | Revisions=+20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=2.23 | Chg30d=+4.69% | Revisions=+20% | Analysts=1
EPS current Year (2026-12-31): EPS=8.60 | Chg30d=-6.52% | Revisions=+20% | GrowthEPS=-27.1% | GrowthRev=-3.9%
EPS next Year (2027-12-31): EPS=9.80 | Chg30d=-2.00% | Revisions=+20% | GrowthEPS=+14.0% | GrowthRev=+6.1%