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Navient
(NASDAQ:NAVI)
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Rating:48Neutral
Price Target:
$8.50
▼(-4.17% Downside)
Action:Reiterated
Date:06/06/26
The score is held down primarily by weak financial performance (recent net losses, declining revenue, and historically high leverage) and bearish technicals (below key moving averages with negative MACD). These are partially offset by a positive earnings-call setup (originations growth, improving credit trends, and cost discipline) and a supportive dividend yield, though the negative P/E tempers the valuation benefit.
Positive Factors
Robust originations growth
Sustained origination expansion, led by a 65% YoY refi increase, signals durable revenue and interest-income growth potential. Strong origination volumes create scale economics, deepen customer relationships and provide a recurring pipeline that supports fee income and future cross-sell opportunities.
Negative Factors
Historically very high leverage
A legacy of extreme leverage materially limits strategic flexibility and amplifies sensitivity to interest rates or credit shocks. Even with recent improvement, the capital base remains thin relative to assets, increasing refinancing, covenant and solvency risk during adverse cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust originations growth
Sustained origination expansion, led by a 65% YoY refi increase, signals durable revenue and interest-income growth potential. Strong origination volumes create scale economics, deepen customer relationships and provide a recurring pipeline that supports fee income and future cross-sell opportunities.
Read all positive factors
Navient Key Performance Indicators (KPIs)
Any
FFELP Net Charge-Off Rate
Represents the share of loan balances written off net of recoveries, directly cutting into earnings and capital; trends upward when borrower repayment and recovery prospects weaken, making profitability and reserve adequacy key investor concerns.
Represents the share of loan balances written off net of recoveries, directly cutting into earnings and capital; trends upward when borrower repayment and recovery prospects weaken, making profitability and reserve adequacy key investor concerns.
Data provided by:
The Fly
The FlyNavient (NAVI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$817.71M
Dividend Yield4.95%
Average Volume (3M)980.76K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth-20.89%
EPS Growth-217.55%
CountryUS
Employees2,100
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-0.61
Shares Outstanding93,989,420
10 Day Avg. Volume1,222,272
30 Day Avg. Volume980,763
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.54
Price to Sales (P/S)0.40
P/FCF Ratio2.92
Enterprise Value/Market Cap55.41
Enterprise Value/Revenue14.80
Enterprise Value/Gross Profit49.47
Enterprise Value/Ebitda85.17
Forecast
1Y Price Target
$8.70Price Target Upside-1.92% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering5
EPS Forecast (FY)0.72
Revenue Forecast (FY)$596.02M
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 Uni...
How the Company Makes Money
Navient primarily makes money through (1) net interest income earned on loan and receivable portfolios it owns (interest income from borrowers minus its funding and hedging costs) and (2) fees for servicing and asset management activities performe...
Navient Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: strong origination growth (refi +65% YoY), improving credit metrics, meaningful expense reductions (OpEx down 30% YoY) and successful securitizations with strong investor demand. This momentum is balanced against some remaining challenges — elevated legacy delinquency/charge-off levels (above historical norms), provisions related to recent natural-disaster losses, a slight decline in federal segment net income, and a near-term unsecured maturity. Management reiterated guidance and highlighted strategic progress and capital flexibility. On balance, the positives (growth, credit improvement, expense discipline, funding success) meaningfully outweigh the negatives.Positive Updates
Strong Originations Growth
Total originations grew over 60% year-over-year; refinance originations grew 65% YoY to $778 million, marking the 10th consecutive quarter of refinance growth.
Negative Updates
Federal Segment Income Slightly Down
Federal Education Loan net income decreased to $22 million from $24 million a year ago; portfolio paydowns reduced net interest income by ~$3 million in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Originations Growth
Total originations grew over 60% year-over-year; refinance originations grew 65% YoY to $778 million, marking the 10th consecutive quarter of refinance growth.
Read all positive updates
Company Guidance
Management said Q1 was in line with its 2026 outlook and kept full‑year targets intact, including a $350M operating expense outlook; Q1 core EPS was $0.20 and core operating expenses were $89M (a 30% YoY improvement) that included roughly $5M of final wind‑down costs. Originations grew >60% YoY overall, refinance originations were $778M (up 65% YoY) with rate‑check volume up 62% YoY and average FICO of 775, in‑school originations were $40M, and Consumer Lending net income was $35M as private balances rose ≈$200M QoQ; Consumer Lending expenses were $39M. Credit metrics improved: private charge‑offs fell to 1.91% (from 2.26%), 31+‑day delinquencies to 5.5% (from 6.3%) and 91+‑day to 2.5% (from 2.9%); total provision was $18M (including $11M for new originations). Federal segment net income was $22M (vs $24M a year ago), provision $9M, net charge‑off rate 29 bps, 31+‑day delinquency improved to 15.2% (from 17.5%) and 91+‑day to 8.5% (from 10.0%); allowance for loan loss (ex‑expected future recoveries) was $645M. Capital and returns included a $683M refinance ABS and $550M in‑school ABS, repurchases of 2.3M shares at an average $9.91 (~$23M), $38M returned to shareholders (buybacks + dividends), and an adjusted tangible equity ratio of 8.9%.Navient Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
32
Negative
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.06B | 3.23B | 4.23B | 4.84B | 3.84B | 3.53B |
| Gross Profit | 916.00M | 2.81B | 848.00M | 1.16B | 1.66B | 2.27B |
| EBITDA | 532.00M | 2.47B | 174.00M | 313.00M | 827.00M | 936.00M |
| Net Income | -60.00M | -80.00M | 131.00M | 228.00M | 645.00M | 717.00M |
Balance Sheet | ||||||
| Total Assets | 48.00B | 48.68B | 51.79B | 61.38B | 70.80B | 80.61B |
| Cash, Cash Equivalents and Short-Term Investments | 621.00M | 2.10B | 722.00M | 839.00M | 1.53B | 905.00M |
| Total Debt | 45.18B | 45.71B | 48.66B | 57.91B | 67.40B | 76.72B |
| Total Liabilities | 45.63B | 46.28B | 49.15B | 58.62B | 67.82B | 78.00B |
| Stockholders Equity | 2.38B | 2.40B | 2.64B | 2.76B | 2.98B | 2.60B |
Cash Flow | ||||||
| Free Cash Flow | 323.00M | 441.00M | 459.00M | 676.00M | 305.00M | 702.00M |
| Operating Cash Flow | 323.00M | 441.00M | 459.00M | 676.00M | 305.00M | 702.00M |
| Investing Cash Flow | 2.74B | 2.71B | 8.47B | 7.36B | 10.59B | 6.67B |
| Financing Cash Flow | -2.99B | -3.15B | -9.62B | -10.05B | -9.66B | -7.33B |
Navient Technical Analysis
Positive
8.87
Price Trends
8.29
Positive
8.37
Positive
10.11
Negative
Market Momentum
0.06
Negative
61.80
Neutral
83.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NAVI, the sentiment is Positive. The current price of 8.87 is above the 20-day moving average (MA) of 8.03, above the 50-day MA of 8.29, and below the 200-day MA of 10.11, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 61.80 is Neutral, neither overbought nor oversold. The STOCH value of 83.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NAVI.
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
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 | $6.98B | 8.95 | 23.62% | 6.07% | 7.80% | 42.28% | |
65 Neutral | $4.80B | 6.97 | 31.16% | 1.88% | 1.73% | 28.93% | |
63 Neutral | $4.83B | 11.74 | 11.39% | 0.87% | 8.64% | 117.05% | |
56 Neutral | $3.22B | 65.99 | 6.59% | ― | 57.69% | ― | |
48 Neutral | $817.71M | -14.26 | -2.45% | 4.95% | -20.89% | -217.55% |
* Financial Sector Average
NAVI
Navient
8.70
-4.52
-34.20%
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134.41
14.49
12.08%
SLM
SLM
25.45
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OMF
OneMain Holdings
60.44
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UPST
Upstart Holdings
33.66
-31.02
-47.96%
Navient Corporate Events
Executive/Board ChangesShareholder Meetings
Navient Shareholders Approve Directors, Auditor and Executive Pay
Positive
Jun 5, 2026
On June 4, 2026, Navient Corporation held its 2026 annual meeting of shareholders, with about 92.81% of outstanding common shares represented in person or by proxy. Shareholders elected six directors, including Frederick Arnold, Edward J. Bramson,...
Private Placements and Financing
Navient Completes $500 Million Senior Notes Offering
Positive
May 29, 2026
On May 29, 2026, Navient Corporation completed a public offering of $500 million aggregate principal amount of 9.375% senior notes due 2031, issued under its existing shelf registration statement. The notes were sold to a syndicate of underwriters...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Navient Announces New CEO to Lead Transformation Phase
Positive
Apr 8, 2026
Navient announced on April 8, 2026, that board chair Edward Bramson will become president and chief executive officer on June 5, 2026, succeeding David Yowan, who will step down from the executive role but remain on the board. Bramson, a veteran t...
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.