9.31%
11.09%
11.38%
8.89%
41.03%
45.67%
133.70%
AI Spotlight on NNI
Create a Free account
Company Description
Nelnet, Inc.engages in loan servicing, communications, education technology, services, and payment processing businesses worldwide.The Loan Servicing and Systems segment provides loan conversion, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliation, and claim processing services.
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; school information system software; website design and cost effective admissions software; FACTS Giving, a donation platform; and customized professional development and coaching services, educational instruction services, and technology products that aid in teacher and student evaluations.It also offers tuition payment plans, and service and technology for student billings, payments, and refunds; solutions for in-person, online, and mobile payment experiences on campus; payment processing services, such as credit card and electronic transfer; faith community engagement, giving management, and learning management services and technologies; and an integrated commerce payment platform, financial management, and tuition payment plan services, as well as a school management platform that provides administrative, information management, financial management, and communication functions for K-12 schools.
The Communications segment provides fiber optic service to homes and businesses for internet, television, and telephone services.The Asset Generation and Management segment acquires, manages, and owns loan assets.The Nelnet Bank segment operates internet industrial banks.
The company was founded in 1978 and is headquartered in Lincoln, Nebraska.
Market Data
| Last Price | 122.39 |
| Change Percentage | 9.31% |
| Open | 115.26 |
| Previous Close | 111.97 |
| Market Cap ( Millions) | 4442 |
| Volume | 78798 |
| Year High | 127.32 |
| Year Low | 85.5 |
| M A 50 | 109.41 |
| M A 200 | 109.05 |
Financial Ratios
| FCF Yield | 4.45% |
| Dividend Yield | 0.92% |
| ROE | 5.55% |
| Debt / Equity | 248.07% |
| Net Debt / EBIDTA | 1405.39% |
| Price To Book | 1.33 |
| Price Earnings Ratio | 24.27 |
| Price To FCF | 22.45 |
| Price To sales | 2.76 |
| EV / EBITDA | 21.75 |
News
- Feb -28 - Nelnet Shows Recovery, Tops EPS
- Feb -27 - Nelnet Reports Fourth Quarter 2024 Results
- Feb -04 - Is Nelnet the Next Warren Buffett-Like Stock?
- Jan -30 - Nelnet to Announce Fourth Quarter Results; Board Approves Dividend
- Dec -05 - Nelnet and Edge Focus Deepen Partnership
- Nov -07 - Nelnet Reports Third Quarter 2024 Results
- Oct -14 - Nelnet to Announce Third Quarter Results
- Sep -19 - Nelnet: Attractive Valuation At A Large Discount To Intrinsic Value
- Aug -08 - Nelnet Reports Second Quarter 2024 Results
- Jul -29 - Nelnet (NNI) Upgraded to Strong Buy: Here's What You Should Know
- Jul -23 - FACTS Expands Education Technology Suite to Serve Corporate and Faith-Based Organizations
- Jul -11 - Nelnet to Announce Second Quarter Results
- May -17 - Best Momentum Stock to Buy for May 17th
- May -10 - Why NelNet Stock Is Popping Higher Today
- May -09 - Nelnet Reports First Quarter 2024 Results
- May -04 - Nelnet: An Appealing Valuation Emerges After A Challenging 2023
- Apr -17 - Nelnet to Announce First Quarter Results
- Apr -12 - Nelnet Renewable Energy Sharpens Focus on Commercial Solar
- Apr -11 - Sunrock DG and Nelnet Partner for Renewable Distributed Generation Projects
- Feb -27 - Nelnet Reports Fourth Quarter 2023 Results
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Asset Generation and Management
Expected Growth : 7.5 %
What the company do ?
Nelnet's Asset Generation and Management enables institutions to manage and optimize their asset portfolios, providing a comprehensive platform for asset creation, tracking, and reporting.
Why we expect these perspectives ?
Nelnet's Asset Generation and Management segment growth of 7.5% is driven by increasing demand for student loan servicing, expansion of fee-based services, and strategic acquisitions. Additionally, the company's focus on digital transformation, process efficiencies, and strong relationships with educational institutions and government agencies contribute to its growth momentum.
Segment n°2 -> Loan Servicing and Systems
Expected Growth : 7.2 %
What the company do ?
Nelnet's Loan Servicing and Systems provide technology-enabled solutions for loan servicing, including payment processing, borrower communication, and loan portfolio management.
Why we expect these perspectives ?
Nelnet's Loan Servicing and Systems segment growth of 7.2% is driven by increased demand for student loan servicing, expansion of government contracts, and strategic acquisitions. Additionally, investments in technology and process improvements have enhanced operational efficiency, leading to higher margins and revenue growth.
Segment n°3 -> Education Technology, Services, and Payment Processing
Expected Growth : 7.8 %
What the company do ?
Nelnet's Education Technology, Services, and Payment Processing provides innovative solutions for educational institutions, including tuition payment plans, loan servicing, and education technology products.
Why we expect these perspectives ?
Nelnet's 7.8% growth in Education Technology, Services, and Payment Processing is driven by increasing demand for online learning platforms, expansion of tuition management services, and growth in payment processing volumes. Additionally, strategic acquisitions, investments in digital transformation, and a strong brand reputation contribute to the company's growth momentum.
Segment n°4 -> Nelnet Financial Services Other
Expected Growth : 6.8 %
What the company do ?
Nelnet Financial Services Other refers to the company's non-lending business, including payment processing, tuition payment plans, and campus commerce services.
Why we expect these perspectives ?
Nelnet Financial Services' 6.8% growth is driven by increasing demand for education loan servicing, expansion of payment processing services, and strategic acquisitions. Additionally, the company's focus on digital transformation, cost savings initiatives, and strong relationships with educational institutions have contributed to its growth momentum.
Segment n°5 -> Corporate and Other Activities
Expected Growth : 5.5 %
What the company do ?
Corporate and Other Activities from Nelnet, Inc. refers to the company's non-lending operations, including investment management, telecommunications, and other business ventures.
Why we expect these perspectives ?
Nelnet's Corporate and Other Activities segment growth of 5.5% is driven by increased investment income, higher interest income from its loan portfolio, and cost savings from operational efficiencies. Additionally, the company's diversification into new business lines, such as payment processing and treasury services, contributes to the segment's growth.
Segment n°6 -> Eliminations
Expected Growth : 0 %
What the company do ?
Eliminations from Nelnet, Inc. refer to the removal of intercompany transactions and balances to present a consolidated financial statement, eliminating the effects of internal transactions.
Why we expect these perspectives ?
Nelnet, Inc.'s eliminations with 0% growth are driven by stagnant student loan demand, increased competition in the education technology space, and lack of innovation in their payment processing services, resulting in flat revenue and no eliminations.
Segment n°7 -> Nelnet Bank
Expected Growth : 8.5 %
What the company do ?
Nelnet Bank is a federally chartered savings bank that provides private student loans, refinancing, and banking services, founded by Nelnet, Inc. in 2020.
Why we expect these perspectives ?
Nelnet Bank's 8.5% growth is driven by increasing demand for student loan refinancing, expansion into new markets, and strategic partnerships. Additionally, the bank's focus on digital transformation, improved customer experience, and diversified revenue streams have contributed to its growth. Furthermore, Nelnet Inc.'s strong brand reputation and financial stability have enabled the bank to capitalize on market opportunities.
Nelnet, Inc. Products
| Product Range | What is it ? |
|---|---|
| Student Loan Servicing | Nelnet provides student loan servicing solutions to borrowers, lenders, and guaranty agencies, offering a range of services including payment processing, customer service, and default prevention. |
| Tuition Payment Plans | Nelnet offers tuition payment plans to educational institutions, allowing students and families to budget and pay for tuition and fees in monthly installments. |
| Education Loan Origination | Nelnet originates and services private education loans, providing financing options to students and families to cover education-related expenses. |
| K-12 Tuition Payment Processing | Nelnet provides tuition payment processing services to K-12 schools, allowing parents to make online payments and set up payment plans. |
| Campus Commerce | Nelnet offers a range of campus commerce solutions, including payment processing, e-commerce platforms, and campus card systems. |
| Alumni Engagement | Nelnet provides alumni engagement solutions to educational institutions, helping them to stay connected with their alumni and raise funds. |
Nelnet, Inc.'s Porter Forces
Threat Of Substitutes
Nelnet's services are specialized, but there are some substitutes available in the market, which may pose a moderate threat to the company.
Bargaining Power Of Customers
Nelnet's customers have limited bargaining power due to the company's diversified customer base and lack of concentration.
Bargaining Power Of Suppliers
Nelnet has a diversified supplier base, which reduces the bargaining power of individual suppliers, and the company is not heavily dependent on a single supplier.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the education loan servicing industry, including regulatory hurdles and the need for significant capital investment.
Intensity Of Rivalry
The education loan servicing industry is moderately competitive, with a few major players, but Nelnet's established position and diversified services help to mitigate the intensity of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 78.39% |
| Debt Cost | 8.14% |
| Equity Weight | 21.61% |
| Equity Cost | 8.14% |
| WACC | 8.14% |
| Leverage | 362.68% |
Nelnet, Inc. : Quality Control
Nelnet, Inc. passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| CACC | Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. The company advances money to dealers in exchange for … |
| ALLY | Ally Financial Inc., a digital financial-services company, provides various digital financial products and services to consumer, commercial, and corporate customers primarily in the United States and Canada. It operates through … |
| FCFS | FirstCash Holdings, Inc, together with its subsidiaries, operates retail pawn stores in the United States, Mexico, and rest of Latin America. Its pawn stores lend money on the collateral of … |
| OMF | OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses. The company originates, underwrites, and services personal loans secured by automobiles, other titled collateral, … |
| SLM | SLM Corporation, through its subsidiaries, originates and services private education loans to students and their families to finance the cost of their education in the United States. It also offers … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
🥇
OneMain Holdings
A-Score
1-Year Total Return ->
🥈
SLM
A-Score
1-Year Total Return ->
🥉
Ally Financial
A-Score
1-Year Total Return ->
4
FirstCash
A-Score
1-Year Total Return ->
5
Nelnet
A-Score
1-Year Total Return ->
6
