Navient (NAVI) AI Stock Analysis

• Market Cap: $1.16B
• Dividend Yield: 5.48%
• Average Volume (3M): 765.77K
• Price to Earnings (P/E): 39.8
• Beta (1Y): 1.03
• Revenue Growth: -25.37%
• EPS Growth: -75.77%
• Country: US
• Employees: 2,100
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -0.84
• Shares Outstanding: 99,431,040
• 10 Day Avg. Volume: 487,180
• 30 Day Avg. Volume: 765,772
• PEG Ratio: -0.31
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 3.16
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $12.58
• Price Target Upside: 7.80% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

• Rating: 58 Neutral
• Price Target: $13.50 ▲(15.68% Upside)

Navient's overall stock score reflects a mixed financial performance with strong operational efficiency but challenges in revenue growth and leverage. Technical indicators suggest potential bearish momentum, and the valuation appears high. The earnings call provided a balanced view with significant achievements and financial challenges.

Positive Factors

Operational Efficiency

Navient's ability to reduce expenses significantly ahead of schedule enhances its operational efficiency, potentially improving profitability and competitive positioning in the long term.

Loan Origination Growth

Sustained growth in loan origination indicates strong demand and effective market penetration, which can drive future revenue growth and strengthen market position.

Cash Flow Stability

Stable free cash flow amidst revenue decline suggests effective cash management, providing financial flexibility and supporting long-term strategic initiatives.

Negative Factors

Revenue Decline

A declining revenue trend can hinder growth potential and market competitiveness, necessitating strategic adjustments to reverse the trend and sustain business viability.

High Leverage

Significant leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and affecting long-term financial stability.

Elevated Delinquency Rates

High delinquency rates can lead to increased provision expenses and credit risk, affecting profitability and necessitating enhanced risk management strategies.

Navient Business Overview & Revenue Model

Company Description

Navient (NAVI) is a leading provider of education loan management and business processing solutions. The company operates primarily in the education finance sector, focusing on student loans, servicing, and collections. Navient offers a range of services including loan origination, servicing, and asset recovery, catering to borrowers and educational institutions. Additionally, it provides financial literacy resources and manages portfolios of federal and private education loans, contributing to its mission of helping borrowers manage their educational financing needs effectively.

How the Company Makes Money

Navient generates revenue primarily through the servicing of federal and private student loans. Key revenue streams include loan servicing fees, interest income from its loan portfolio, and collection fees from delinquent accounts. The company earns servicing fees by managing loan accounts for borrowers and educational institutions, ensuring compliance with regulatory requirements. Interest income is derived from the loans it holds on its balance sheet, particularly on private student loans. Additionally, Navient has partnerships with various educational institutions, which may lead to increased loan origination and servicing opportunities. The company's ability to effectively manage loan portfolios and its diversified service offerings position it well for sustained earnings.

Navient Financial Statement Overview

Summary

Navient demonstrates operational efficiency with strong gross and EBIT margins, but faces challenges with revenue growth and net profitability. High leverage poses financial risks, although cash flow management is stable. Addressing growth and leverage concerns is crucial for improved financial health.

Income Statement

Navient's TTM revenue declined compared to the previous year, indicating a negative growth trend. The gross and EBIT margins remain strong at 64.1% and 50.8% respectively, suggesting efficient operations. However, the TTM net profit margin is low at 1.0%, reflecting challenges in converting revenue into net income.

Balance Sheet

The company has a high debt-to-equity ratio, indicative of significant leverage, posing potential financial risk. The equity ratio is 5.1%, which shows limited capitalization. ROE is low at 1.3%, suggesting inefficiencies in generating returns for shareholders.

Cash Flow

Navient's free cash flow remains stable despite declining revenue, with a consistent operating cash flow to net income ratio indicating healthy cash generation relative to earnings. However, there is no significant growth in free cash flow, which could affect liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.39B	4.23B	4.92B	3.84B	3.53B	3.69B
Gross Profit	2.32B	848.00M	1.16B	1.66B	2.27B	2.98B
EBITDA	2.79B	3.47B	3.95B	3.04B	2.66B	2.83B
Net Income	-50.00M	131.00M	228.00M	645.00M	717.00M	412.00M
Balance Sheet
Total Assets	49.31B	51.79B	61.38B	70.80B	80.61B	87.41B
Cash, Cash Equivalents and Short-Term Investments	1.87B	722.00M	839.00M	1.53B	905.00M	1.18B
Total Debt	4.92B	48.32B	57.30B	66.90B	76.98B	83.94B
Total Liabilities	46.87B	49.15B	58.62B	67.82B	78.00B	84.97B
Stockholders Equity	2.44B	2.64B	2.76B	2.98B	2.60B	2.43B
Cash Flow
Free Cash Flow	275.00M	459.00M	676.00M	305.00M	702.00M	987.00M
Operating Cash Flow	275.00M	459.00M	676.00M	305.00M	702.00M	987.00M
Investing Cash Flow	2.87B	8.47B	7.36B	10.59B	6.67B	6.45B
Financing Cash Flow	-4.07B	-9.62B	-10.05B	-9.66B	-7.33B	-7.68B

Navient Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 11.67 is below the 20-day moving average (MA) of 12.53, below the 50-day MA of 12.95, and below the 200-day MA of 13.06, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 33.56 is Neutral, neither overbought nor oversold. The STOCH value of 60.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NAVI.

Navient Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NNI	―	$4.64B	14.69	9.42%	0.88%	6.46%	116.26%
OMF	―	$6.66B	10.46	20.47%	7.43%	9.41%	13.98%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SLM	―	$5.74B	9.95	27.85%	1.95%	0.59%	-1.11%
LC	―	$1.98B	19.48	7.40%	―	9.68%	94.85%
NAVI	―	$1.16B	39.84	1.28%	5.48%	-25.37%	-75.77%
UPST	―	$4.88B	―	-0.96%	―	60.62%	96.91%

Navient Corporate Events

Navient Reports Mixed Q2 2025 Financial Results

Navient Corporation, a leader in education loan management, has released its financial results for the second quarter of 2025. The company, which specializes in helping students and families manage education costs through lending and refinancing, reported mixed financial outcomes for the quarter.

Navient’s Earnings Call: Growth Amid Challenges

Navient Corporation’s recent earnings call presented a balanced sentiment, highlighting both significant growth opportunities and notable challenges. The company showcased impressive loan origination growth and capital market successes, while also addressing concerns over elevated provision expenses and rising delinquency rates. This duality paints a picture of a company navigating both promising prospects and pressing hurdles.