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Nelnet
(NYSE:NNI)
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Rating:67Neutral
Price Target:
$138.00
▲(8.34% Upside)
Action:Downgraded
Date:09/17/26
The score is primarily supported by strong profitability and healthy cash-flow conversion, which outweigh near-term concerns. The biggest risks tempering the score are the sharp TTM revenue decline and uncertainty around leverage consistency, while technicals look neutral-to-soft and valuation appears reasonable with a modest dividend.
Positive Factors
Strong profitability and cash conversion
Healthy operating margins and strong conversion of earnings into free cash flow indicate that Nelnet is generating substantial internal funding. This supports continued investment in servicing, payments, and technology platforms while improving resilience across its diversified financial-services model.
Negative Factors
Sharp recent revenue contraction
The sharp TTM revenue decline shows that Nelnet’s earnings strength is not currently matched by consistent top-line expansion. Persistent contraction could reduce operating leverage, limit investment capacity, and indicate pressure in servicing, asset-based, or technology-related revenue streams.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash conversion
Healthy operating margins and strong conversion of earnings into free cash flow indicate that Nelnet is generating substantial internal funding. This supports continued investment in servicing, payments, and technology platforms while improving resilience across its diversified financial-services model.
Read all positive factors
Nelnet (NNI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.38B
Dividend Yield1.08%
Average Volume (3M)137.71K
Price to Earnings (P/E)14.7
Beta (1Y)0.53
Revenue Growth-6.77%
EPS Growth-7.42%
CountryUS
Employees5,744
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)8.33
Shares Outstanding25,162,764
10 Day Avg. Volume129,825
30 Day Avg. Volume137,707
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.31
Price to Sales (P/S)2.13
P/FCF Ratio12.17
Enterprise Value/Market Cap2.45
Enterprise Value/Revenue5.78
Enterprise Value/Gross Profit6.99
Enterprise Value/Ebitda19.13
Forecast
1Y Price Target
$125.00Price Target Upside-1.87% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)7.42
Revenue Forecast (FY)$1.67B
Nelnet Business Overview & Revenue Model
Company Description
Nelnet, Inc. operates globally, encompassing a variety of businesses including loan management, telecommunications, educational technology, related services, and payment processing solutions. Its Loan Servicing and Systems division offers comprehe...
How the Company Makes Money
Nelnet makes money through a combination of (1) interest and investment income from financial assets and (2) fee-based revenues from servicing and technology/payment platforms.
1) Loan servicing and related fees (education and other portfolios)
-...
Nelnet Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
58
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.86B | 2.26B | 1.85B | 1.81B | 1.82B | 1.42B |
| Gross Profit | 1.54B | 1.97B | 1.11B | 961.15M | 1.35B | 1.25B |
| EBITDA | 561.82M | 1.11B | 361.11M | 214.11M | 678.09M | 634.43M |
| Net Income | 302.24M | 428.47M | 184.04M | 89.83M | 406.90M | 393.29M |
Balance Sheet | ||||||
| Total Assets | 14.28B | 14.06B | 13.78B | 16.71B | 19.37B | 21.68B |
| Cash, Cash Equivalents and Short-Term Investments | 1.56B | 973.55M | 1.18B | 1.11B | 1.51B | 1.06B |
| Total Debt | 7.04B | 7.79B | 8.31B | 11.83B | 14.64B | 17.65B |
| Total Liabilities | 10.64B | 10.49B | 10.48B | 13.51B | 16.17B | 18.73B |
| Stockholders Equity | 3.77B | 3.69B | 3.35B | 3.25B | 3.20B | 2.95B |
Cash Flow | ||||||
| Free Cash Flow | 364.03M | 396.75M | 641.99M | 358.92M | 624.64M | 421.38M |
| Operating Cash Flow | 401.06M | 422.99M | 662.89M | 432.98M | 684.06M | 480.33M |
| Investing Cash Flow | -290.24M | 509.43M | 2.41B | 1.94B | 2.27B | 1.19B |
| Financing Cash Flow | 67.50M | -890.16M | -3.17B | -2.70B | -2.79B | -1.43B |
Nelnet Technical Analysis
Negative
127.38
Price Trends
125.79
Negative
128.77
Negative
130.03
Negative
Market Momentum
-0.47
Positive
38.12
Neutral
12.92
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NNI, the sentiment is Negative. The current price of 127.38 is above the 20-day moving average (MA) of 125.09, above the 50-day MA of 125.79, and below the 200-day MA of 130.03, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 38.12 is Neutral, neither overbought nor oversold. The STOCH value of 12.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NNI.
Nelnet Risk Analysis
Nelnet disclosed 26 risk factors in its most recent earnings report. Nelnet reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nelnet Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $4.38B | 14.70 | 8.15% | 1.08% | -6.77% | -7.42% | |
65 Neutral | $4.16B | 11.06 | 26.36% | ― | 20.08% | 33.74% | |
62 Neutral | $18.68B | 28.35 | 6.18% | ― | 34.08% | -0.29% | |
58 Neutral | $3.59B | 7.03 | 23.59% | 2.77% | -6.24% | -3.47% | |
55 Neutral | $2.24B | 37.01 | 7.85% | ― | 46.30% | ― | |
49 Neutral | $789.66M | -17.18 | -2.04% | 7.60% | -17.19% | -244.62% |
* Financial Sector Average
NNI
Nelnet
122.41
-6.50
-5.04%
SLM
SLM
19.62
-8.02
-29.01%
NAVI
Navient
8.42
-3.65
-30.23%
ENVA
Enova International
170.03
50.75
42.55%
UPST
Upstart Holdings
23.00
-27.70
-54.64%
SOFI
SoFi
14.46
-17.20
-54.33%
Nelnet Corporate Events
Business Operations and StrategyExecutive/Board Changes
Nelnet Expands Board with Two New Independent Directors
Positive
Sep 16, 2026
On September 15, 2026, Nelnet’s board of directors expanded from eight to ten members and appointed Angie Klein and Ed Pallesen as independent directors, with Klein designated a Class III director through the 2029 annual meeting and Pallesen...
Financial DisclosuresRegulatory Filings and Compliance
Nelnet Bank Files Quarterly Regulatory Call Report Update
Neutral
Jul 30, 2026
On July 29, 2026, Nelnet Bank filed its Consolidated Reports of Condition and Income for the quarter ended June 30, 2026 with the Federal Deposit Insurance Corporation, using the FFIEC 051 form applicable to banks with domestic offices and assets ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.