Navient (NAVI) AI Stock Analysis

• Market Cap: $1.34B
• Dividend Yield: 4.83%
• Average Volume (3M): 674.48K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 1.00
• Revenue Growth: -21.19%
• EPS Growth: -67.35%
• Country: US
• Employees: 2,100
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Credit Services
• EPS (TTM): 0.25
• Shares Outstanding: 101,150,215
• 10 Day Avg. Volume: 562,728
• 30 Day Avg. Volume: 674,475
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.06
• Price Target Upside: -1.43% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 66 Neutral
• Price Target: $15.00 ▲( 13.21% Upside)

Navient's overall stock score reflects its mixed financial performance, characterized by strong gross margins but high leverage and fluctuating revenues. While the recent corporate event is positive, the valuation remains high, and technical indicators suggest a neutral market sentiment. The earnings call provided some optimism with growth in loan origination and expense reduction, balanced by concerns over delinquency rates and economic uncertainty.

Positive Factors

Loan Origination

NAVI originated $508mm in private education loans, significantly higher compared to the previous year.

Strategic Actions

Navient announced an agreement to sell the Government Services business to Gallant Capital Partners, seen as a step forward in its strategic action plan.

Negative Factors

Earnings

Reported GAAP EPS loss of $0.02.

Financial Performance

Revenue and earnings growth remain challenged despite cost reductions, which could impact future financial performance.

Strategic Vision

Management has not articulated a clear strategic vision for investors, creating some uncertainty.

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 makes money through several key revenue streams. Primarily, it generates revenue from servicing student loans, which includes collecting payments, managing accounts, and providing customer service for both federal and private education loans. Additionally, Navient earns revenue from asset recovery services, which involves the collection of overdue payments on defaulted student loans and other receivables. The company also benefits from its business processing solutions, offering services to various government and healthcare clients. Significant factors contributing to Navient's earnings include its contractual agreements with the U.S. Department of Education and its partnerships with financial institutions for private loan servicing.

Navient Financial Statement Overview

Summary

Navient presents a mixed financial picture. Strong gross margins and operational efficiency are offset by declining revenues and high leverage. The balance sheet shows high debt levels, which could be risky, but the company continues to generate substantial cash flows. While the financial health is stable, the high leverage and fluctuating revenues suggest potential volatility. Investors should weigh these factors carefully when considering Navient's financial position.

Income Statement

Navient's income statement shows mixed results. The gross profit margin for TTM is healthy at 92.9%, indicating efficient cost management. However, the net profit margin is relatively low at 1.63%, suggesting high operating or non-operating expenses. Revenue growth has been inconsistent, with a notable decline in TTM compared to the previous year. EBIT and EBITDA margins remain robust at 71.34% and 84.79%, respectively, highlighting strong operating profitability.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 1.88, which could pose risks during economic downturns. The return on equity (ROE) for TTM is modest at 2.16%, indicating limited returns for shareholders. However, the equity ratio stands at 5.08%, showing a relatively small reliance on equity financing compared to total assets. While the company maintains a substantial asset base, the high level of debt warrants cautious optimism.

Cash Flow

Cash flow analysis indicates a challenging environment. Free cash flow decreased significantly, with a negative growth rate in TTM. The operating cash flow to net income ratio is robust at 6.21, suggesting strong cash generation relative to net income. However, the free cash flow to net income ratio of 6.21 indicates reliance on operating cash flows for capital expenses.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.44B	3.81B	1.28B	1.74B	2.21B	1.69B
	Gross Profit
3.20B	3.49B	4.40B	1.18B	1.00B	724.00M
	EBIT
2.46B	2.81B	346.00M	2.93B	936.00M	532.00M
	EBITDA
2.97B	3.47B	3.95B	2.93B	2.66B	0.00
	Net Income Common Stockholders
56.00M	131.00M	228.00M	645.00M	717.00M	412.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.79B	2.10B	839.00M	1.53B	905.00M	1.18B
	Total Assets
61.38B	51.79B	61.38B	70.80B	80.61B	87.41B
	Total Debt
57.63B	47.91B	57.30B	66.90B	76.98B	83.94B
	Net Debt
54.84B	47.18B	56.46B	65.36B	76.07B	82.76B
	Total Liabilities
58.62B	49.15B	58.62B	67.82B	78.00B	84.97B
	Stockholders Equity
2.76B	2.64B	2.76B	2.98B	2.60B	2.43B
Cash Flow		Free Cash Flow
348.00M	459.00M	676.00M	305.00M	702.00M	987.00M
	Operating Cash Flow
348.00M	459.00M	676.00M	305.00M	702.00M	987.00M
	Investing Cash Flow
6.80B	8.47B	7.36B	10.59B	6.67B	6.45B
	Financing Cash Flow
-8.04B	-9.62B	-10.05B	-9.66B	-7.33B	-7.68B

Navient Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NAVI, the sentiment is Neutral. The current price of 13.25 is above the 20-day moving average (MA) of 13.14, above the 50-day MA of 12.58, and below the 200-day MA of 13.98, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 54.52 is Neutral, neither overbought nor oversold. The STOCH value of 21.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NAVI.

Navient Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEZL	76 Outperform	$3.51B	35.59	137.28%	―	91.69%	702.31%
OMF	68 Neutral	$5.97B	10.62	17.46%	8.29%	9.07%	―
NAVI	66 Neutral	$1.34B	26.10	2.09%	4.83%	-21.19%	-67.35%
SLM	66 Neutral	$7.05B	12.09	27.60%	1.43%	-0.70%	-12.72%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%
LC	56 Neutral	$1.13B	22.18	3.86%	―	5.72%	31.82%
CURR	45 Neutral	$23.36M	―	-907.81%	―	―	-520.78%

Navient Corporate Events

Navient Completes $500 Million Senior Notes Offering

On May 19, 2025, Navient Corporation completed a public offering of $500 million in 7.875% Senior Notes due 2032. This offering was conducted under the company’s shelf registration statement filed with the SEC earlier in May 2025. The company entered into an Underwriting Agreement with several financial institutions, including RBC Capital Markets and Barclays Capital, for the sale and resale of these notes. This strategic financial move is expected to impact Navient’s operations by potentially enhancing its financial flexibility and market position.

The most recent analyst rating on (NAVI) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Navient stock, see the NAVI Stock Forecast page.