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Navient
(NASDAQ:NAVI)
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Rating:49Neutral
Price Target:
$9.00
▼(-3.95% Downside)
Action:Reiterated
Date:10/22/26
NAVI’s score is held back primarily by weak financial performance—TTM revenue decline, a net loss, and elevated leverage/negative ROE—despite steady positive free cash flow. Technical indicators also point to muted momentum with the stock below key short-term averages and slightly negative MACD. Offsetting factors include a high dividend yield and an earnings-call backdrop showing improving core EPS, strong origination growth, and expense reductions, though reserve actions and legacy portfolio adjustments add volatility risk.
Positive Factors
Origination Growth
Originations increased more than 60% year over year, indicating stronger demand and expanding loan production. Sustained volume growth can support future interest income, servicing activity, and securitization opportunities, improving the platform’s earnings base if credit standards remain disciplined.
Negative Factors
Profitability Deterioration
Revenue contraction and a shift from positive earnings to a net loss weaken the company’s current earnings profile. The positive EBIT margin shows that the operating engine remains active, but unstable bottom-line results reduce retained capital and make future shareholder returns more dependent on recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Origination Growth
Originations increased more than 60% year over year, indicating stronger demand and expanding loan production. Sustained volume growth can support future interest income, servicing activity, and securitization opportunities, improving the platform’s earnings base if credit standards remain disciplined.
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
$846.87M
Dividend Yield7.09%
Average Volume (3M)1.38M
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth-17.19%
EPS Growth-244.62%
CountryUS
Employees670
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-0.49
Shares Outstanding93,783,830
10 Day Avg. Volume1,162,964
30 Day Avg. Volume1,375,022
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 Cap50.78
Enterprise Value/Revenue14.64
Enterprise Value/Gross Profit29.62
Enterprise Value/Ebitda39.71
Forecast
1Y Price Target
$8.25Price Target Upside-11.95% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering5
EPS Forecast (FY)0.81
Revenue Forecast (FY)$582.21M
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 generates revenue primarily through (1) interest income and related yield on loans it owns and manages, and (2) fees for servicing and administering loan portfolios for third parties. Interest-based earnings come from the spread between th...
Navient Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call emphasized multiple positive operational and strategic trends: strong originations growth (>60% YoY), improved operating leverage (18% lower operating expenses YoY), higher core EPS (core EPS $0.29; $0.25 ex-items vs $0.20 prior year), strengthened capital activity (securitizations, $500M debt issuance) and improving federal credit metrics. Offsetting these positives were notable reserve builds and accounting/portfolio changes tied to the legacy private loan book (a $23M reserve build, $528M reclassified held-for-sale and $19M allowance reallocation), modest regulatory and restructuring costs, and a slight decline in FFELP segment income. Overall, the positive momentum in growth, expense reduction and capital actions appears to outweigh the headwinds from legacy portfolio reserve adjustments and one-time expenses.Positive Updates
Core Earnings Improvement
Core EPS of $0.29 in Q2 2026 (included net $0.04 benefit from a $12M realized gain, a $3M securitization call loss and $4M regulatory/restructuring expense); core EPS excluding those items was $0.25 versus $0.20 in Q2 2025 (up ~25% year-over-year).
Negative Updates
Reserve Build on Remaining Private Portfolio
Recorded a $23M reserve build on the remaining private loan portfolio in Q2 after credit performance improvement moderated during the quarter; this was a material component of the quarter's $26M total provision.
Read all updates
Q2-2026 Updates
Positive
Negative
Core Earnings Improvement
Core EPS of $0.29 in Q2 2026 (included net $0.04 benefit from a $12M realized gain, a $3M securitization call loss and $4M regulatory/restructuring expense); core EPS excluding those items was $0.25 versus $0.20 in Q2 2025 (up ~25% year-over-year).
Read all positive updates
Company Guidance
Management's guidance and metrics emphasized continued origination growth and improved operating leverage: Q2 core EPS was $0.29 (adjusting for a $12M realized investment gain, $3M FFELP securitization call loss and $4M of regulatory/restructuring expenses, core EPS would be ~$0.25 vs $0.20 in 2025), total originations rose >60% YoY to $815M (refinance $735M, in‑school $80M; YTD originations >$1.5B and YTD in‑school $120M), refinance new‑loan weighted average FICO was 774 with ~60% of volume from graduate borrowers and rate checks/origination volume up >60% YoY; management expects in‑school originations to grow ~50% on a $401M base to just above $600M for 2026 (implying ~480M in back‑half originations) and has elected fair‑value accounting for in‑school loans originated after June 30, 2026 (no CECL allowance/provision, removing near‑term provision impact). Credit and reserve metrics: total provision $26M (FFELP $8M, private $18M comprised of $14M tied to Q2 originations, a $19M release related to $528M of legacy private loans classified held‑for‑sale, and a $23M build on the remaining private portfolio); private charge‑offs improved to 1.8% (Q1 1.9%), 31+ delinq 5.4% (5.5% prior), 91+ delinq 2.4% (2.5% prior); FFELP charge‑offs improved to 18 bps (from 29 bps) and 91+ delinq to 8.0% (down 50 bps QoQ, >200 bps YoY). Expense and capital guidance: Q2 expenses $85M (vs $100M a year ago), YTD operating expenses ex‑items $167M and on pace for a full‑year operating expense target of $350M or lower; capital activity included a $500M unsecured issuance and ~$500M retirements, $17M returned to shareholders in Q2 (with a $100M buyback authorization and ~ $75M remaining), and an adjusted tangible equity ratio of ~9% (managed at ≥8%).Navient Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
33
Negative
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.94B | 3.23B | 4.23B | 4.84B | 3.84B | 3.53B |
| Gross Profit | 1.45B | 2.81B | 848.00M | 1.16B | 1.66B | 2.27B |
| EBITDA | 1.08B | 2.47B | 174.00M | 313.00M | 827.00M | 936.00M |
| Net Income | -49.00M | -80.00M | 131.00M | 228.00M | 645.00M | 717.00M |
Balance Sheet | ||||||
| Total Assets | 47.30B | 48.68B | 51.79B | 61.38B | 70.80B | 80.61B |
| Cash, Cash Equivalents and Short-Term Investments | 2.14B | 2.10B | 722.00M | 839.00M | 1.53B | 905.00M |
| Total Debt | 44.34B | 45.71B | 48.66B | 57.91B | 67.40B | 76.72B |
| Total Liabilities | 44.90B | 46.28B | 49.15B | 58.62B | 67.82B | 78.00B |
| Stockholders Equity | 2.40B | 2.40B | 2.64B | 2.76B | 2.98B | 2.60B |
Cash Flow | ||||||
| Free Cash Flow | 340.00M | 441.00M | 459.00M | 676.00M | 305.00M | 702.00M |
| Operating Cash Flow | 340.00M | 441.00M | 459.00M | 676.00M | 305.00M | 702.00M |
| Investing Cash Flow | 2.64B | 2.71B | 8.47B | 7.36B | 10.59B | 6.67B |
| Financing Cash Flow | -2.91B | -3.15B | -9.62B | -10.05B | -9.66B | -7.33B |
Navient Technical Analysis
Negative
9.37
Price Trends
9.25
Negative
8.74
Positive
8.80
Positive
Market Momentum
-0.03
Positive
46.04
Neutral
12.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NAVI, the sentiment is Negative. The current price of 9.37 is above the 20-day moving average (MA) of 9.15, above the 50-day MA of 9.25, and above the 200-day MA of 8.80, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.04 is Neutral, neither overbought nor oversold. The STOCH value of 12.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $4.49B | 15.07 | 8.15% | 1.05% | -6.77% | -7.42% | |
67 Neutral | $6.54B | 8.53 | 23.07% | 7.39% | 6.93% | 19.96% | |
66 Neutral | $4.18B | 6.31 | 30.31% | 2.28% | 4.76% | 78.90% | |
65 Neutral | $19.24B | 29.22 | 6.18% | ― | 34.08% | -0.29% | |
55 Neutral | $2.30B | 38.08 | 7.85% | ― | 46.30% | ― | |
49 Neutral | $846.87M | -18.43 | -2.04% | 7.09% | -17.19% | -244.62% |
* Financial Sector Average
NAVI
Navient
8.86
-2.98
-25.14%
NNI
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125.85
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-3.27%
SLM
SLM
21.76
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-16.79%
OMF
OneMain Holdings
57.11
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8.83%
UPST
Upstart Holdings
23.85
-28.25
-54.22%
SOFI
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14.77
-13.31
-47.40%
Navient Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Navient Announces New Holding Company Reorganization Plan
Positive
Oct 21, 2026
On Oct. 21, 2026, Navient announced plans to implement a new holding company structure under which Navient Holdings, Inc. will become the parent of Navient LLC and Earnest’s parent, E Parent, Inc. Navient LLC will assume the obligations of N...
Business Operations and StrategyExecutive/Board Changes
Navient Adds Veteran Independent Director to Board Committees
Positive
Sep 25, 2026
On September 24, 2026, Navient appointed veteran financial services executive Diane E. Offereins to its board of directors, filling a vacancy created by the retirement of a board member in June 2026. The board has determined that Offereins qualifi...
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.