Navient (NAVI) AI Stock Analysis

• Market Cap: $956.54M
• Dividend Yield: 4.95%
• Average Volume (3M): 980.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -25.22%
• EPS Growth: -174.34%
• Country: US
• Employees: 2,100
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.02
• Shares Outstanding: 97,506,710
• 10 Day Avg. Volume: 1,222,272
• 30 Day Avg. Volume: 980,763
• 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: 46.58
• Enterprise Value/Revenue: 13.06
• Enterprise Value/Gross Profit: 100.36
• Enterprise Value/Ebitda: -578.68
• 1Y Price Target: $11.17
• Price Target Upside: 13.06% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $9.50 ▼(-3.85% Downside)

The score is held down primarily by weak financial performance (negative profitability, leverage) and bearish technicals (price below all major DMAs with negative MACD). Positive offsets are supportive 2026 guidance and cost-reduction execution, plus a high dividend yield, but credit/provision headwinds and current trend weakness keep the overall score below average.

Positive Factors

Expense reductions and lower cost base

Material, sustained expense cuts reshape Navient’s cost structure, improving operating leverage and lowering the break‑even for new lending. A permanently smaller fixed cost base supports margin durability, funds reinvestment or buybacks, and increases resilience to cyclical credit shocks over 2–6 months.

Strong origination momentum (Earnest & in‑school)

Renewed, scalable origination growth diversifies revenue away from legacy servicing fees and supports future interest income and fee capture. Higher, repeatable originations tied to improving conversion metrics and fintech product mix underpin durable top‑line recovery and franchise relevance over the medium term.

Improved cash generation and securitization efficiency

Strong FCF growth plus active ABS funding lowers the equity needed to fund originations, enhancing capital efficiency. Better cash generation increases financial flexibility to fund growth, pay dividends or repurchase shares while insulating operations from short‑term earnings variability.

Negative Factors

High leverage and weak equity base

Elevated leverage limits strategic optionality and increases refinancing and interest‑rate risks. With negative ROE and a thin equity cushion, adverse credit or funding shocks could force more conservative capital actions, constraining expansion and shareholder returns across the next several quarters.

Negative profitability and declining revenue trends

Sustained revenue contraction and a negative net margin undermine earnings power and internal funding. Even with gross margins strong, net losses limit reinvestment capacity and raise reliance on securitization and external financing to sustain growth, pressuring long‑term profitability.

Legacy credit deterioration and CECL earnings volatility

Ongoing deterioration in the private legacy book forces incremental provisions that hit reported earnings and erode capital. Coupled with an upfront CECL accounting drag management flags, this creates persistent earnings volatility and complicates reliable capital return plans over the near‑to‑medium term.

Navient Business Overview & Revenue Model

Company Description

Navient Corporation provides education loan management and business processing solutions for education, healthcare, and government clients at the federal, state, and local levels in the United States. It operates through three segments: Federal Education Loans, Consumer Lending, and Business Processing. The company owns Federal Family Education Loan Program (FFELP) loans that are insured or guaranteed by state or not-for-profit agencies; and performs servicing and asset recovery services on its own loan portfolio, as well as asset recovery services on FFELP loans owned by other institutions. It also owns, originates, acquires, and services refinance and in-school private education loans; and offers healthcare services that include revenue cycle outsourcing, accounts receivable management, extended business office support, consulting engagement, and public health programs, as well as business processing services to state governments, agencies, court systems, municipalities, and parking and tolling authorities. In addition, the company provides customizable solutions for its clients that include hospitals, hospital systems, medical centers, large physician groups, other healthcare providers, and public health departments; and corporate liquidity portfolio services. Navient Corporation was founded in 1973 and is headquartered in Wilmington, Delaware.

How the Company Makes Money

Navient generates revenue through several key streams. The primary source of income comes from servicing federal and private student loans, where the company earns fees for managing loan accounts and providing customer support. Additionally, Navient generates revenue from asset recovery services, where it helps lenders recover funds from defaulted loans. The company also earns interest income on its loan portfolio, which includes both owned loans and those it services on behalf of investors and the government. Significant partnerships with educational institutions and government agencies further enhance its revenue stability by providing a steady flow of loan servicing contracts.

Navient Financial Statement Overview

Summary

Overall fundamentals are pressured by declining revenue (TTM down 6%), negative net profit margin, and high leverage (debt-to-equity 2.02) with negative ROE. Offsetting this somewhat, free cash flow improved materially (TTM FCF growth 41%) and gross margin remains strong.

Income Statement

Navient's income statement shows a challenging period with declining revenue and negative net profit margin in the TTM. The gross profit margin remains strong at 68.4%, but the net profit margin has turned negative, indicating profitability issues. Revenue has decreased by 6% in the TTM, continuing a downward trend from previous years. While EBIT and EBITDA margins are relatively high, the overall financial health is impacted by declining revenue and profitability.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 2.02 in the TTM, which is a significant improvement from previous years but still indicates high financial risk. The return on equity is negative, reflecting the company's struggle to generate profits from its equity base. The equity ratio is low, suggesting limited financial stability. Overall, the balance sheet shows a company with high debt levels and profitability challenges.

Cash Flow

Navient's cash flow statement shows a positive trend in free cash flow growth at 41% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is low, reflecting the negative net income. However, the free cash flow to net income ratio is stable at 1.0, suggesting efficient cash management despite profitability issues. The cash flow position is relatively stable, but the negative net income poses a risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.41B	4.23B	4.84B	3.84B	3.53B	3.73B
Gross Profit	444.00M	848.00M	1.16B	1.66B	2.27B	1.53B
EBITDA	-77.00M	174.00M	313.00M	827.00M	936.00M	553.00M
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	571.00M	722.00M	839.00M	1.53B	905.00M	1.18B
Total Debt	46.38B	48.66B	57.91B	67.40B	76.72B	83.39B
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: 9.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 9.88 is below the 20-day moving average (MA) of 12.08, below the 50-day MA of 12.35, and below the 200-day MA of 12.70, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 21.06 is Positive, neither overbought nor oversold. The STOCH value of 10.37 is Positive, 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
OMF	79 Outperform	$7.72B	11.22	21.41%	6.07%	9.51%	29.38%
NNI	78 Outperform	$4.74B	11.19	12.27%	0.87%	9.14%	291.99%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LC	63 Neutral	$1.95B	14.64	9.55%	―	9.68%	94.85%
SLM	62 Neutral	$5.51B	7.78	32.31%	1.88%	0.59%	-1.11%
UPST	55 Neutral	$3.82B	172.30	4.81%	―	73.29%	―
NAVI	47 Neutral	$956.54M	-11.98	-1.95%	4.95%	-25.22%	-174.34%

Navient Corporate Events

Navient Restructures Leadership, Promotes New Chief Financial Officer

On January 6, 2026, Navient’s board approved a leadership reshuffle to better align the company with its business strategy, effective January 7, 2026, including the promotion of longtime executive Steve Hauber to executive vice president, chief financial officer and principal accounting officer while he retains oversight of legal, internal audit, risk management and corporate compliance. Executive vice president and chief operating officer Troy Standish will continue to lead Navient’s education finance operations, including FFELP and private portfolios and in-school originations, and has assumed responsibility for technology and human resources, while former CFO Joe Fisher stepped down from his roles as of January 6, 2026 and will depart after a transition period in the first quarter; Navient also created a new, dedicated CFO position for its Earnest fintech subsidiary and enhanced compensation packages for Hauber and Standish, signaling a push to operate Navient and Earnest more independently and to sharpen their focus on growth opportunities in their respective markets.

The most recent analyst rating on (NAVI) stock is a Sell with a $11.00 price target. To see the full list of analyst forecasts on Navient stock, see the NAVI Stock Forecast page.

Navient Unveils Phase 2 Strategy Update

On November 19, 2025, Navient Corporation released a ‘Phase 2 Strategy Update’ presentation, highlighting its strategic initiatives to enhance growth and efficiency. The company plans to align its product lines and metrics with industry peers, aiming for higher growth rates and increased recurring fee income. The restructuring program has already resulted in significant cost savings, and the company anticipates further expense reductions, which could positively impact its financial performance and stakeholder value.

The most recent analyst rating on (NAVI) stock is a Sell with a $11.00 price target. To see the full list of analyst forecasts on Navient stock, see the NAVI Stock Forecast page.