Navient (R26) AI Stock Analysis

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Navient

(Frankfurt:R26)

Rating:―N/A

Action:N/A

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Positive Factors

Earnest origination expansionRapid growth across refinance and in-school lending demonstrates stronger origination momentum and expanding customer reach. High average FICO scores and improved acquisition costs support the durability of this growth, while broader volume can improve operating leverage over coming quarters.

Negative Factors

Extreme leverageVery high leverage leaves Navient with limited financial flexibility and makes results more sensitive to funding costs, credit losses and portfolio performance. Thin equity provides a smaller buffer against adverse loan outcomes, constraining capital allocation and increasing balance-sheet risk over the medium term.

Navient (R26) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 555.20M
Dividend Yield: 7.65%
Average Volume (3M): ―
Price to Earnings (P/E): 11.0
Beta (1Y): 0.85
Revenue Growth: -15.59%
EPS Growth: ―
Country: Germany
Employees: 670
Sector: Financial
Sector Strength: 68
Industry: Financial - Credit Services

Navient Business Overview & Revenue Model

Company Description

Navient Corporation specializes in managing education loans and delivering comprehensive business processing services. Its clientele spans the education, healthcare, and government sectors, serving federal, state, and local entities across the United...

Navient Earnings Call Summary

Earnings Call Date:Nov 04, 2026(Q3-2026)|% Change Since:0.03%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentPositive

The call was broadly constructive, with strong growth in refinance and in-school originations, improved efficiency, successful legacy loan sales, lower companywide expenses, a higher capital ratio, and continued capital flexibility. These positives were tempered by substantial credit provisions, legacy and older refinance vintages performing below expectations, rising-rate pressure on refinance returns, and higher FFELP delinquencies. Overall, the positive operating and strategic developments significantly outweighed the stated challenges.

Positive Updates

Quarterly Profitability and Capital Position

Third-quarter earnings were $0.16 per share on a GAAP basis and $0.03 per share on a core basis. The adjusted tangible equity ratio increased to 9.5% in September from 9.0% in June.

Negative Updates

Large Provision for Previously Originated Private Loans

Navient recorded $227 million of provision in the third quarter, including $211 million of additional provision on previously originated private loans. The legacy portion was $178 million, while $33 million related to refinance loans.

Company Guidance

Management forecast total originations of 3.8 for the year, with about 3.1 year to date and about $700 million for the fourth quarter, with a bit more PL, a lot less in school and probably flat with refi; full year operating expenses are expected to be $350 million or lower. Graduate loans are being originated with healthy NIM probably in the 3% range, the company plans for next year to get them more a larger sample of PL, but “I do not think it is going to be huge next year,” and refi coupons were expected to be about 2-thirds of the way to catching up with the increase in benchmark rates by year-end, with returns on equity down into the 10s, down to the single digits. For anything being done consistently, management is looking for high teens or even better, with the potential on in school potentially even higher.

Navient Risk Analysis

Navient disclosed 31 risk factors in its most recent earnings report. Navient 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

Navient Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:R26 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OMF	67Neutral	$6.34B	8.41	22.64%	7.59%	6.46%	11.49%
NNI	63Neutral	$4.51B	16.82	7.26%	1.04%	-9.30%	-36.58%
SOFI	62Neutral	$21.25B	28.05	6.76%	―	37.62%	0.62%
SLM	61Neutral	$3.07B	6.06	23.59%	3.08%	-6.24%	-3.47%
UPST	58Neutral	$2.02B	31.09	8.10%	―	38.56%	100.99%

* Financial Sector Average

Performance Comparison

DE:R26 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:R26	Navient Corporation	6.86	-2.82	-29.16%
NNI	Nelnet	126.46	-2.63	-2.04%
SLM	Slm Corporation	16.91	-10.77	-38.90%
OMF	OneMain Holdings, Inc.	55.36	-0.14	-0.26%
UPST	Upstart Holdings, Inc.	20.56	-16.73	-44.86%
SOFI	Sofi Technologies Inc	16.27	-12.12	-42.69%

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.

Navient AI Stock Analysis