0.47%
4.10%
-2.78%
-15.69%
-19.66%
-20.63%
-3.79%
AI Spotlight on NAVI
Company Description
Navient Corporation provides education loan management and business processing solutions for education, healthcare, and government clients at the federal, state, and local levels in the United States.It operates through three segments: Federal Education Loans, Consumer Lending, and Business Processing.The company owns Federal Family Education Loan Program (FFELP) loans that are insured or guaranteed by state or not-for-profit agencies; and performs servicing and asset recovery services on its own loan portfolio, as well as asset recovery services on FFELP loans owned by other institutions.
It also owns, originates, acquires, and services refinance and in-school private education loans; and offers healthcare services that include revenue cycle outsourcing, accounts receivable management, extended business office support, consulting engagement, and public health programs, as well as business processing services to state governments, agencies, court systems, municipalities, and parking and tolling authorities.In addition, the company provides customizable solutions for its clients that include hospitals, hospital systems, medical centers, large physician groups, other healthcare providers, and public health departments; and corporate liquidity portfolio services.Navient Corporation was founded in 1973 and is headquartered in Wilmington, Delaware.
Market Data
| Last Price | 13.84 |
| Change Percentage | 0.47% |
| Open | 13.74 |
| Previous Close | 13.77 |
| Market Cap ( Millions) | 1485 |
| Volume | 26824 |
| Year High | 17.56 |
| Year Low | 12.73 |
| M A 50 | 14.33 |
| M A 200 | 15.06 |
Financial Ratios
| FCF Yield | 51.23% |
| Dividend Yield | 4.63% |
| ROE | 6.79% |
| Debt / Equity | 1832.29% |
| Net Debt / EBIDTA | 1316.02% |
| Price To Book | 0.55 |
| Price Earnings Ratio | 8.03 |
| Price To FCF | 1.95 |
| Price To sales | 0.33 |
| EV / EBITDA | 13.57 |
News
- Jan -29 - Navient Corporation (NAVI) Q4 2024 Earnings Call Transcript
- Jan -29 - Navient Q4 Earnings Beat Estimates on Lower Expenses, NII Dips Y/Y
- Jan -29 - Navient (NAVI) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
- Jan -29 - Navient (NAVI) Q4 Earnings Beat Estimates
- Jan -29 - Navient posts fourth quarter 2024 financial results
- Jan -23 - Decline in Non-Interest Income to Hurt Navient in Q4 Earnings
- Jan -21 - Navient To Benefit From New Trump Administration? Analyst Turns Bullish
- Jan -08 - Navient to announce fourth quarter and year-end 2024 results, host earnings webcast Jan. 29
- Jan -06 - Gallant Capital Acquires the Government Services Business of Navient Corporation
- Dec -30 - Navient Stock Reaches 52-Week Low: What Should Investors Do Now?
- Dec -24 - Navient to Divest Its Government Services Unit to Gallant Capital
- Dec -23 - Navient to sell Government Services business to Gallant Capital
- Nov -29 - Why Is Navient (NAVI) Up 7.7% Since Last Earnings Report?
- Nov -13 - Navient declares fourth quarter common stock dividend
- Nov -12 - Navient Receives Champion of Board Diversity Recognition by The Forum of Executive Women
- Oct -30 - Navient Corporation (NAVI) Q3 2024 Earnings Call Transcript
- Oct -30 - Navient Q3 Earnings Beat Estimates, NII & Provisions Decline Y/Y
- Oct -30 - Navient (NAVI) Reports Q3 Earnings: What Key Metrics Have to Say
- Oct -30 - Navient (NAVI) Q3 Earnings Beat Estimates
- Oct -30 - Navient posts third quarter 2024 financial results
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Consumer Lending
Expected Growth : 9.27 %
What the company do ?
Consumer Lending from Navient Corporation offers private student loans and refinance options to help individuals finance their education and manage debt.
Why we expect these perspectives ?
Navient Corporation's 9.27% growth in Consumer Lending is driven by increasing demand for personal loans, expansion of online lending platforms, and strategic partnerships. Additionally, the company's focus on refinancing and debt consolidation, as well as its efforts to improve credit quality, have contributed to the growth.
Segment n°2 -> Federal Education Loans
Expected Growth : 7.43 %
What the company do ?
Federal Education Loans from Navient Corporation provide financial assistance to students pursuing higher education, offering various repayment plans and forgiveness options.
Why we expect these perspectives ?
Navient Corporation's 7.43% growth in Federal Education Loans is driven by increasing college enrollment, rising tuition fees, and government support for student loan programs. Additionally, the company's efficient loan servicing and collection practices, as well as its strong brand recognition, contribute to its growth.
Segment n°3 -> Business Processing
Expected Growth : 10.27 %
What the company do ?
Business Processing from Navient Corporation involves managing and servicing student loans, providing customer support, and facilitating repayment plans for borrowers.
Why we expect these perspectives ?
Navient Corporation's 10.27% growth in Business Processing is driven by increasing demand for student loan servicing, strategic partnerships, and expansion into new markets. Additionally, investments in digital transformation, process automation, and customer experience enhancements have improved operational efficiency, contributing to the segment's growth.
Segment n°4 -> Other
Expected Growth : 8.23 %
What the company do ?
Navient Corporation's 'Other' segment includes revenue from its consumer lending business, which offers private education loans and other financial products.
Why we expect these perspectives ?
Navient Corporation's 8.23% growth is driven by increasing demand for student loan refinancing, expansion of its digital platform, and strategic partnerships. Additionally, the company's focus on debt repayment and credit score improvement has led to higher revenue from interest income and fees. Furthermore, Navient's cost-cutting initiatives and efficient operations have contributed to its profitability.
Segment n°5 -> Reconciling Items
Expected Growth : 10.27 %
What the company do ?
Reconciling Items from Navient Corporation refers to the process of resolving discrepancies between internal financial records and Navient's statements, ensuring accuracy and consistency in financial reporting.
Why we expect these perspectives ?
Navient Corporation's 10.27% growth driven by increasing demand for student loan refinancing, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, cost savings initiatives, and strong brand recognition contribute to its growth momentum.
Navient Corporation Products
| Product Range | What is it ? |
|---|---|
| Federal Family Education Loans (FFEL) | Navient services and collects FFEL loans, which are federally guaranteed student loans that help students and parents pay for college. |
| Private Education Loans | Navient offers private education loans to students and parents to help them cover education-related expenses. |
| Business Processing Outsourcing (BPO) Services | Navient provides BPO services to education lenders, helping them manage their loan portfolios and customer relationships. |
| Asset Recovery | Navient helps education lenders recover defaulted loans, reducing losses and improving their financial performance. |
| Default Aversion | Navient's default aversion services help borrowers avoid defaulting on their loans, reducing delinquencies and defaults. |
Navient Corporation's Porter Forces
Threat Of Substitutes
Navient Corporation operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand recognition and diversified product offerings mitigate the threat of substitutes to some extent.
Bargaining Power Of Customers
Navient Corporation's customers have limited bargaining power due to the company's strong market position and diversified product offerings. Additionally, the company's large customer base and lack of concentration of customers also reduce the bargaining power of customers.
Bargaining Power Of Suppliers
Navient Corporation has a diversified supplier base, which reduces the bargaining power of suppliers. Additionally, the company's large scale of operations and strong financial position also reduce the bargaining power of suppliers.
Threat Of New Entrants
The threat of new entrants in the industry is low due to the high barriers to entry, including regulatory hurdles and the need for significant capital investment. Navient Corporation's strong brand recognition and established market position also make it difficult for new entrants to gain traction.
Intensity Of Rivalry
The intensity of rivalry in the industry is high due to the presence of many competitors and the highly competitive nature of the industry. Navient Corporation faces intense competition from other companies, which can lead to pricing pressure and reduced market share.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 95.44% |
| Debt Cost | 8.36% |
| Equity Weight | 4.56% |
| Equity Cost | 10.93% |
| WACC | 8.48% |
| Leverage | 2091.00% |
Navient Corporation : Quality Control
Navient Corporation passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| OCSL | Oaktree Specialty Lending Corporation is a business development company specializing in investments in middle market, bridge financing, first and second lien debt financing, unsecured and mezzanine loan, mezzanine debt, senior … |
| MFIN | Medallion Financial Corp., together with its subsidiaries, operates as a finance company in the United States. The company operates through four segments: Recreation Lending, Home Improvement Lending, Commercial Lending, and … |
| RWAY | Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It prefers to make investments in companies engaged in the … |
| AGM | Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through four segments: Farm & Ranch, USDA (United States Department … |
| RM | Regional Management Corp., a diversified consumer finance company, provides various installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Medallion Financial
A-Score
1-Year Total Return ->
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Runway Growth Finance
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Regional Management
A-Score
1-Year Total Return ->
4
Farmer Mac
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1-Year Total Return ->
5
Oaktree Specialty Lending
A-Score
1-Year Total Return ->
6
