Nelnet, Inc. (NNI) 10-Year Financial Performance & Capital Metrics

NNI • • Banking & Credit

Financial ServicesCredit ServicesStudent & Education FinanceStudent Loan Servicers

AboutNelnet, 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.Show more

Net Interest Income $293M +10.6%
Total Revenue $1.85B +1.8%
Net Income $184M +104.9%
Return on Equity 5.66% +101.8%
Net Interest Margin 2.13% +34.2%
Efficiency Ratio 47.81% -2.8%
ROA 1.21% +142.5%
Equity / Assets 23.95% +25.1%
Book Value per Share 90.03 +5.3%
Tangible BV/Share 84.73 +5.8%
Debt/Equity 2.52 -31.9%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong Piotroski F-Score: 9/9
✓Efficient operations: 47.8% efficiency ratio
✓11 consecutive years of dividend growth
✓Well capitalized: 23.9% equity/assets
✓Share count reduced 2.1% through buybacks
✓Diversified revenue: 47.3% from non-interest income

✗Weaknesses

✗High debt to equity ratio of 2.5x

Price & Volume

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Growth Metrics

Revenue CAGR

10Y5.24%

5Y1.94%

3Y9.21%

TTM-

Profit (Net Income) CAGR

10Y-5.01%

5Y5.35%

3Y-22.36%

TTM286.23%

EPS CAGR

10Y-2.73%

5Y7.24%

3Y-21.05%

TTM289.46%

ROCE

10Y Avg1.48%

5Y Avg1.85%

3Y Avg1.62%

Latest1.76%

Peer Comparison

Student Loan Servicers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
NNINelnet, Inc.	3.44B	135.93	27.08	1.78%	9.97%	12.1%	18.66%	2.52
JSMNavient Corporation SR NT 6% 121543	5.4B	19.71	16.43	229.5%	3.44%	-2.05%	8.5%	16.35
NAVINavient Corporation	1.22B	12.51	10.60	-12.45%	3.09%	-2.05%	37.63%	18.43

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Net Interest Income+	431.9M	372.56M	305.24M	254.36M	249.35M	289.58M	347.6M	312.67M	264.71M	292.86M
NII Growth %	-0.01%	-0.14%	-0.18%	-0.17%	-0.02%	0.16%	0.2%	-0.1%	-0.15%	0.11%
Net Interest Margin %	-	-	-	-	-	-	-	-	-	-
Interest Income	734.11M	760.75M	770.43M	924.27M	948.68M	619.66M	523.84M	742.81M	1.11B	973.4M
Interest Expense	302.21M	388.18M	465.19M	669.91M	699.33M	330.07M	176.23M	430.14M	845.09M	680.54M
Loan Loss Provision	10.15M	13.5M	14.45M	23M	39M	63.36M	-12.43M	34.97M	8.12M	54.61M
Non-Interest Income+	376.53M	433.03M	407.86M	756.04M	729.08M	752.97M	893.99M	1.07B	704.55M	873.26M
Non-Interest Income %	-	-	-	-	-	-	-	-	-	-
Total Revenue+	1.11B	1.19B	1.18B	1.68B	1.68B	1.37B	1.42B	1.82B	1.81B	1.85B
Revenue Growth %	0%	0.07%	-0.01%	0.43%	-0%	-0.18%	0.03%	0.28%	-0%	0.02%
Non-Interest Expense	377.64M	393.28M	471.97M	701.11M	762.69M	528.71M	751.91M	849.96M	892.43M	882.93M
Efficiency Ratio	-	-	-	-	-	-	-	-	-	-
Operating Income+	420.64M	398.81M	226.68M	286.29M	176.75M	450.49M	502.11M	501.85M	68.72M	228.58M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	-0.1%	-0.05%	-0.43%	0.26%	-0.38%	1.55%	0.11%	-0%	-0.86%	2.33%
Pretax Income+	420.64M	398.81M	226.68M	286.29M	176.75M	450.49M	502.11M	501.85M	68.72M	228.58M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	152.38M	141.31M	64.86M	58.77M	35.45M	100.86M	115.82M	113.1M	19.39M	52.67M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	267.98M	256.75M	173.17M	227.91M	141.8M	352.44M	393.29M	406.9M	89.83M	184.04M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	-0.13%	-0.04%	-0.33%	0.32%	-0.38%	1.49%	0.12%	0.03%	-0.78%	1.05%
Net Income (Continuing)	268.26M	257.5M	161.82M	227.52M	141.29M	349.63M	386.28M	388.75M	49.33M	175.91M
EPS (Diluted)+	5.89	6.02	4.14	5.57	3.54	9.02	10.20	10.63	2.39	5.02
EPS Growth %	-0.11%	0.02%	-0.31%	0.35%	-0.36%	1.55%	0.13%	0.04%	-0.78%	1.1%
EPS (Basic)	5.89	6.02	4.14	5.64	3.54	9.02	10.20	10.63	2.39	5.02
Diluted Shares Outstanding	45.53M	42.67M	41.79M	40.91M	39.52M	38.51M	37.94M	37.6M	37.42M	36.64M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash & Short Term Investments+	0	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	63.53M	69.65M	66.75M	121.35M	133.91M	121.25M	125.56M	118.15M	168.11M	194.52M
Short Term Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Total Investments+	379.19M	295.22M	255.58M	243.31M	21.6B	21.13B	19.88B	17.24B	14.8B	11.93B
Investments Growth %	0.31%	-0.22%	-0.13%	-0.05%	87.8%	-0.02%	-0.06%	-0.13%	-0.14%	-0.19%
Long-Term Investments	234.75M	188.73M	174.68M	0	21.55B	20.78B	18.95B	15.86B	13.86B	10.94B
Accounts Receivables	0	0	0	0	1000K	1000K	1000K	1000K	1000K	1000K
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-	-
Goodwill	146M	147.31M	138.76M	156.91M	156.91M	142.09M	142.09M	176.9M	158.03M	158.03M
Intangible Assets	51.06M	47.81M	38.43M	114.29M	81.53M	75.07M	52.03M	63.5M	44.82M	36.33M
PP&E (Net)	80.48M	123.79M	248.05M	344.78M	348.26M	123.53M	119.41M	122.53M	127.01M	95.19M
Other Assets	1.28B	-25.75B	-22.63B	-23.36B	1.27B	980.3M	1.2B	1.42B	1.17B	1.17B
Total Current Assets	883.97M	0	0	0	302M	546.32M	1.22B	1.73B	1.36B	1.37B
Total Non-Current Assets	1.79B	1.95B	1.93B	2.65B	23.41B	22.1B	20.46B	17.64B	15.36B	12.41B
Total Assets+	30.49B	27.18B	23.96B	25.22B	23.71B	22.65B	21.68B	19.37B	16.71B	13.78B
Asset Growth %	0.01%	-0.11%	-0.12%	0.05%	-0.06%	-0.04%	-0.04%	-0.11%	-0.14%	-0.18%
Return on Assets (ROA)	0.01%	0.01%	0.01%	0.01%	0.01%	0.02%	0.02%	0.02%	0%	0.01%
Accounts Payable	31.51M	45.68M	50.04M	61.68M	47.28M	28.7M	4.57M	36.05M	35.39M	21.05M
Total Debt+	28.17B	24.67B	21.36B	22.22B	20.53B	19.34B	17.65B	14.64B	11.83B	8.31B
Net Debt	27.81B	24.34B	21.05B	21.85B	20.4B	19.22B	17.52B	14.52B	11.66B	8.12B
Long-Term Debt	28.17B	24.67B	21.36B	22.22B	19.58B	18.77B	17.03B	12.94B	10.2B	7.37B
Short-Term Debt	0	0	0	0	944.66M	553.37M	600.91M	1.7B	1.63B	943.16M
Other Liabilities	-28.17B	-24.67B	-21.36B	-22.22B	741.54M	595.02M	729.33M	809.58M	904.89M	961.66M
Total Current Liabilities	0	0	0	0	991.95M	636.71M	949.79M	2.43B	2.41B	2.15B
Total Non-Current Liabilities	0	0	0	0	20.33B	19.38B	17.78B	13.75B	11.1B	8.33B
Total Liabilities	28.59B	25.11B	21.8B	22.91B	21.32B	20.02B	18.73B	16.17B	13.51B	10.48B
Total Equity+	1.89B	2.07B	2.17B	2.31B	2.39B	2.63B	2.95B	3.2B	3.2B	3.3B
Equity Growth %	0.1%	0.09%	0.05%	0.07%	0.03%	0.1%	0.12%	0.08%	0%	0.03%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	0.15%	0.13%	0.08%	0.1%	0.06%	0.14%	0.14%	0.13%	0.03%	0.06%
Book Value per Share	41.56	48.53	51.81	56.58	60.50	68.26	77.82	85.10	85.53	90.03
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-
Common Stock	440K	421K	408K	403K	398K	384K	379K	372K	371K	363K
Additional Paid-in Capital	0	420K	521K	622K	5.71M	3.79M	1M	1.11M	3.1M	7.39M
Retained Earnings	1.88B	2.06B	2.14B	2.3B	2.38B	2.62B	2.94B	3.23B	3.27B	3.34B
Accumulated OCI	2.28M	4.73M	4.62M	3.88M	2.97M	6.1M	9.3M	-37.37M	-20.12M	1.47M
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Preferred Stock	0	270K	383K	117K	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	391.37M	325.26M	227.51M	270.89M	298.92M	349.1M	480.33M	684.06M	432.03M	662.89M
Operating CF Growth %	0.09%	-0.17%	-0.3%	0.19%	0.1%	0.17%	0.38%	0.42%	-0.37%	0.53%
Net Income	268.26M	257.5M	161.82M	227.52M	141.29M	349.63M	386.28M	396.24M	54.44M	175.91M
Depreciation & Amortization	123.74M	122.55M	137.82M	184.68M	192.66M	198.47M	132.32M	176.25M	145.39M	132.53M
Deferred Taxes	7.05M	27M	-1.54M	10.98M	-7.26M	7.97M	55.62M	34.64M	-51.96M	-21.62M
Other Non-Cash Items	-7.03M	-100.53M	8.68M	32.52M	-7.06M	-282.2M	-71.02M	67.34M	132.1M	29.26M
Working Capital Changes	-6M	14.39M	-83.69M	-191.36M	-27.49M	58.49M	-33.56M	-4.59M	134.16M	334.76M
Cash from Investing+	1.42B	3.26B	3.27B	-732.35M	1.52B	621.22M	1.19B	2.27B	1.94B	2.41B
Purchase of Investments	-194.42M	-117.03M	-157.86M	-113.46M	-104.26M	-639.73M	-996.91M	-1.29B	-938.87M	-1.09B
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Net Investment Activity	-	-	-	-	-	-	-	-	-	-
Acquisitions	-46.97M	3.43B	4.51M	-12.56M	0	-29.99M	0	-34.04M	0	0
Other Investing	1.55B	-147.49M	3.41B	-575.76M	1.65B	1.22B	1.89B	3.08B	1.94B	2.95B
Cash from Financing+	-1.88B	-3.58B	-3.5B	711.78M	-1.79B	-1.23B	-1.43B	-2.79B	-2.7B	-3.17B
Dividends Paid	-19.02M	-21.19M	-24.1M	-26.84M	-29.48M	-31.78M	-34.46M	-36.61M	-39.42M	-40.84M
Share Repurchases	-96.17M	-69.09M	-68.9M	-45.33M	-40.41M	-73.36M	-58.11M	-97.69M	-28.03M	-83.29M
Stock Issued	801K	889K	678K	1.36M	1.55M	1.65M	1.47M	1.63M	1.78M	1.95M
Net Stock Activity	-	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	-1000K	-1000K	-1000K	1000K	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K
Other Financing	4.26M	-5.18M	10.48M	-25.5M	-8.06M	113.75M	396.97M	377.77M	207.45M	566.53M
Net Change in Cash+	-66.95M	6.13M	-2.9M	250.32M	30.21M	-264.21M	235.79M	163.43M	-332.13M	-94.47M
Exchange Rate Effect	0	0	0	0	0	0	-121K	-160K	16K	-437K
Cash at Beginning	130.48M	63.53M	69.65M	942.07M	1.19B	1.22B	958.39M	1.19B	1.36B	1.03B
Cash at End	63.53M	69.65M	66.75M	1.19B	1.22B	958.39M	1.19B	1.36B	1.03B	931.02M
Interest Paid	228.25M	301.12M	390.28M	591.39M	657.44M	301.57M	152.17M	350.66M	781.31M	651.47M
Income Taxes Paid	147.24M	115.42M	96.27M	473K	17.67M	29.68M	18.66M	57.7M	47.59M	15.24M
Free Cash Flow+	374.6M	257.65M	71.5M	145.87M	206.42M	235.79M	421.38M	624.64M	358.92M	641.99M
FCF Growth %	0.13%	-0.31%	-0.72%	1.04%	0.42%	0.14%	0.79%	0.48%	-0.43%	0.79%

Banking Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	14.81%	12.96%	8.18%	10.17%	6.03%	14.04%	14.09%	13.23%	2.81%	5.66%
Return on Assets (ROA)	0.88%	0.89%	0.68%	0.93%	0.58%	1.52%	1.77%	1.98%	0.5%	1.21%
Net Interest Margin	1.42%	1.37%	1.27%	1.01%	1.05%	1.28%	1.6%	1.61%	1.58%	2.13%
Efficiency Ratio	34%	32.94%	40.06%	41.72%	45.46%	38.52%	53.03%	46.78%	49.19%	47.81%
Equity / Assets	6.21%	7.62%	9.04%	9.18%	10.09%	11.61%	13.62%	16.52%	19.15%	23.95%
Book Value / Share	41.56	48.53	51.81	56.58	60.5	68.26	77.82	85.1	85.53	90.03
NII Growth	-1.07%	-13.74%	-18.07%	-16.67%	-1.97%	16.14%	20.03%	-10.05%	-15.34%	10.64%
Dividend Payout	7.1%	8.25%	13.92%	11.78%	20.79%	9.02%	8.76%	9%	43.88%	22.19%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Loan Servicing And Systems Revenue	-	-	-	440.03M	455.25M	451.56M	486.36M	535.46M	517.95M	482.41M
Loan Servicing And Systems Revenue Growth	-	-	-	-	3.46%	-0.81%	7.71%	10.09%	-3.27%	-6.86%
Payment Processing	-	-	-	84.29M	110.85M	114.3M	127.08M	148.21M	163.86M	179.04M
Payment Processing Growth	-	-	-	-	31.51%	3.12%	11.18%	16.63%	10.56%	9.27%
Education Technology Services	-	-	-	-	-	-	-	-	170.75M	169.06M
Education Technology Services Growth	-	-	-	-	-	-	-	-	-	-0.99%
Tuition Payment Plan Services	-	-	-	85.38M	106.68M	100.67M	103.97M	110.8M	125.33M	135.85M
Tuition Payment Plan Services Growth	-	-	-	-	24.95%	-5.63%	3.27%	6.57%	13.11%	8.40%
Private Education And Consumer Loan Servicing	-	-	-	41.47M	36.79M	32.49M	47.3M	49.21M	48.98M	63.45M
Private Education And Consumer Loan Servicing Growth	-	-	-	-	-11.30%	-11.68%	45.58%	4.03%	-0.46%	29.54%
Software Services	-	-	-	32.93M	41.08M	42M	34.6M	33.41M	29.21M	21.03M
Software Services Growth	-	-	-	-	24.74%	2.24%	-17.62%	-3.44%	-12.57%	-27.99%
Outsourced Services	-	-	-	-	-	-	-	13.76M	13.58M	4.79M
Outsourced Services Growth	-	-	-	-	-	-	-	-	-1.29%	-64.73%
Other Service Offering	-	-	-	1.14M	1.22M	1.33M	2M	2.85M	3.37M	3M
Other Service Offering Growth	-	-	-	-	7.56%	8.99%	49.89%	42.64%	18.32%	-10.94%
Education Technology Services And Payment Processing Services	-	-	-	221.96M	277.33M	282.2M	338.23M	408.54M	-	-
Education Technology Services And Payment Processing Services Growth	-	-	-	-	24.95%	1.75%	19.86%	20.79%	-	-
Education Technology And Services	-	-	-	51.16M	58.58M	65.89M	105.19M	146.68M	-	-
Education Technology And Services Growth	-	-	-	-	14.51%	12.47%	59.65%	39.45%	-	-
Government Servicing - Great Lakes	-	-	-	168.3M	185.66M	179.87M	193.21M	-	-	-
Government Servicing - Great Lakes Growth	-	-	-	-	10.31%	-3.12%	7.42%	-	-	-
Outsourced Services Revenue And Other	-	-	-	8.69M	8.7M	30.22M	25.39M	-	-	-
Outsourced Services Revenue And Other Growth	-	-	-	-	0.08%	247.32%	-15.98%	-	-	-
FFELP Servicing	-	-	-	31.54M	25.04M	20.18M	18.28M	-	-	-
FFELP Servicing Growth	-	-	-	-	-20.60%	-19.41%	-9.42%	-	-	-
Investment Advice	-	-	-	6.01M	2.94M	10.88M	7.77M	-	-	-
Investment Advice Growth	-	-	-	-	-51.06%	269.77%	-28.52%	-	-	-
Administrative Service	-	-	-	6.5M	8.84M	-	3.31M	-	-	-
Administrative Service Growth	-	-	-	-	36.03%	-	-	-	-	-
Communications Services	-	-	-	44.65M	64.27M	76.64M	-	-	-	-
Communications Services Growth	-	-	-	-	43.93%	19.25%	-	-	-	-
Communication Revenue, Service Offering	-	-	-	44.65M	64.27M	-	-	-	-	-
Communication Revenue, Service Offering Growth	-	-	-	-	43.93%	-	-	-	-	-
Internet	-	-	-	24.07M	38.24M	-	-	-	-	-
Internet Growth	-	-	-	-	58.88%	-	-	-	-	-
Television	-	-	-	12.95M	16.2M	-	-	-	-	-
Television Growth	-	-	-	-	25.08%	-	-	-	-	-
Telephone	-	-	-	7.55M	9.71M	-	-	-	-	-
Telephone Growth	-	-	-	-	28.61%	-	-	-	-	-
Other Communication Revenue	-	-	-	89K	129K	-	-	-	-	-
Other Communication Revenue Growth	-	-	-	-	44.94%	-	-	-	-	-
Loan Servicing And Systems	-	-	-	440.03M	-	-	-	-	-	-
Loan Servicing And Systems Growth	-	-	-	-	-	-	-	-	-	-
FFELP Guarantee Collection and Servicing	-	-	-	-	-	-	-	-	-	-
FFELP Guarantee Collection and Servicing Growth	-	-	-	-	-	-	-	-	-	-
Enrollment Services	-	-	-	-	-	-	-	-	-	-
Enrollment Services Growth	-	-	-	-	-	-	-	-	-	-
Student Loan and Guaranty Servicing	50.35M	45.38M	41.67M	-	-	-	-	-	-	-
Student Loan and Guaranty Servicing Growth	-	-9.88%	-8.17%	-	-	-	-	-	-	-
Asset Generation and Management	-	-	-	-	-	-	-	-	-	-
Asset Generation and Management Growth	-	-	-	-	-	-	-	-	-	-
Telecommunications	-	-	-	-	-	-	-	-	-	-
Telecommunications Growth	-	-	-	-	-	-	-	-	-	-
Tuition Payment Processing and Campus Commerce	-	-	-	-	-	-	-	-	-	-
Tuition Payment Processing and Campus Commerce Growth	-	-	-	-	-	-	-	-	-	-
Corporate and Other	-	-	-	-	-	-	-	-	-	-
Corporate and Other Growth	-	-	-	-	-	-	-	-	-	-
Intersegment Eliminations	-50.35M	-45.38M	-	-	-	-	-	-	-	-
Intersegment Eliminations Growth	-	9.88%	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Nelnet, Inc. (NNI) has a price-to-earnings (P/E) ratio of 27.1x. This suggests investors expect higher future growth.

Growth & Financials

Nelnet, Inc. (NNI) grew revenue by 1.8% over the past year. Growth has been modest.

Yes, Nelnet, Inc. (NNI) is profitable, generating $433.9M in net income for fiscal year 2024 (10.0% net margin).

Dividend & Returns

Yes, Nelnet, Inc. (NNI) pays a dividend with a yield of 0.82%. This makes it attractive for income-focused investors.

Nelnet, Inc. (NNI) has a return on equity (ROE) of 5.7%. This is below average, suggesting room for improvement.

Industry Metrics

Nelnet, Inc. (NNI) has a net interest margin (NIM) of 2.1%. NIM has been under pressure due to interest rate environment.

Nelnet, Inc. (NNI) has an efficiency ratio of 47.8%. This is excellent, indicating strong cost control.

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