Navient (NAVI)
NASDAQ:NAVI
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Navient
(NASDAQ:NAVI)
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Rating:49Neutral
Price Target:
$9.00
▲(10.16% Upside)
Action:ReiteratedDate:02/27/26
The score is held back mainly by weak financial quality (2025 net loss and very high leverage) and bearish technicals (below major moving averages with negative momentum). These are partially offset by supportive income characteristics (high dividend yield) and a more optimistic 2026 outlook from management focused on expense cuts and origination growth, though legacy credit provisioning remains a meaningful risk.
Positive Factors
Expense Reductions
Navient’s multi-year cost transformation materially lowers the structural expense base, improving operating leverage and margin potential. A permanently smaller cost footprint supports sustainable profitability, gives flexibility to fund growth, and reduces break-even sensitivity to credit cycles.
Negative Factors
Very High Leverage
Extremely high debt relative to equity constrains strategic flexibility and magnifies downside risk from credit shocks or earnings misses. Servicing and refinancing needs, plus limited equity buffers, raise the company’s vulnerability to higher funding costs and slower recovery from adverse credit trends.
Read all positive and negative factors
Positive Factors
Negative Factors
Expense Reductions
Navient’s multi-year cost transformation materially lowers the structural expense base, improving operating leverage and margin potential. A permanently smaller cost footprint supports sustainable profitability, gives flexibility to fund growth, and reduces break-even sensitivity to credit cycles.
Read all positive factors
Navient (NAVI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$776.88M
Dividend Yield4.95%
Average Volume (3M)980.76K
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth-25.22%
EPS Growth-174.34%
CountryUS
Employees2,100
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.02
Shares Outstanding95,089,670
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 Cap57.13
Enterprise Value/Revenue13.89
Enterprise Value/Gross Profit48.72
Enterprise Value/Ebitda86.69
Forecast
1Y Price Target
$9.92Price Target Upside21.42% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering6
EPS Forecast (FY)0.7
Revenue Forecast (FY)$608.27M
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 Ed...
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, Navie...
Navient Key Performance Indicators (KPIs)
Navient Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call highlighted strong operational progress: substantial and sustained expense reductions, clear capital efficiency gains from securitization, robust origination momentum at Earnest (refi doubled, in-school at record levels), and an ambitious 2026 originations and EPS outlook. Offsetting these positives are credit deterioration and higher provisions in the private legacy portfolio that materially pressured reported 2025 earnings, modest restructuring charges, and FFELP prepayment headwinds. Management portrays the provisions as largely limited to older legacy loans and emphasizes that expense reductions and securitization-driven capital efficiency position the company to fund growth and return capital. On balance, the operational and growth positives and the clear path to improved 2026 profitability modestly outweigh the near-term earnings headwinds from legacy credit provisions.Positive Updates
Exceeded Expense Reduction Target and Material Cost Declines
Completed Phase One transformation and will exceed the $400 million legacy expense reduction objective; full-year 2025 total expenses of $438 million (close to 50% decrease vs 2023) and Q4 core operating expenses of $88 million (40% improvement vs 2024). 2026 expense target of $350 million, ~20% lower than 2025 and $88 million lower in absolute terms.
Negative Updates
Incremental Provisioning and Private Legacy Portfolio Deterioration
Recorded an additional Q4 provision of $43 million (of which $9 million related to new originations), largely focused on the private legacy portfolio (loans >10 years old) due to worsening fourth-quarter delinquency trends and a weaker macro scenario; reserve coverage for private legacy ended the year in the mid-3% range (~3.5%).
Read all updates
Q4-2025 Updates
Positive
Negative
Exceeded Expense Reduction Target and Material Cost Declines
Completed Phase One transformation and will exceed the $400 million legacy expense reduction objective; full-year 2025 total expenses of $438 million (close to 50% decrease vs 2023) and Q4 core operating expenses of $88 million (40% improvement vs 2024). 2026 expense target of $350 million, ~20% lower than 2025 and $88 million lower in absolute terms.
Read all positive updates
Company Guidance
Navient’s 2026 guidance targets $4.0 billion of total loan originations (≈60% growth vs. 2025) with refi and in‑school lending each growing >50% (personal lending < $100M), and a $1.5 billion YoY increase in originations that management says can be funded by capital released from the back book while cutting total expenses roughly 20% (guiding 2026 expenses of $350M, down $88M from 2025’s $438M). Management expects 2026 core EPS of $0.65–$0.80 (net of a $0.35–$0.40/share upfront CECL and origination‑related expense headwind). Key 2025 metrics cited include Earnest refi of $634M in Q4 ($2.1B full year), total Earnest originations $2.5B, in‑school originations $4.1B, nearly $2.2B of ABS issuance, an adjusted tangible equity ratio of 9.1%, year‑end reserve coverage in the mid‑3% range and an allowance (ex‑recoveries) of $77M.Navient Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
18
Very Negative
Cash Flow
56
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.23B | 4.23B | 4.84B | 3.84B | 3.53B |
| Gross Profit | 2.81B | 848.00M | 1.16B | 1.66B | 2.27B |
| EBITDA | 2.47B | 174.00M | 313.00M | 827.00M | 936.00M |
| Net Income | -80.00M | 131.00M | 228.00M | 645.00M | 717.00M |
Balance Sheet | |||||
| Total Assets | 48.68B | 51.79B | 61.38B | 70.80B | 80.61B |
| Cash, Cash Equivalents and Short-Term Investments | 2.10B | 722.00M | 839.00M | 1.53B | 905.00M |
| Total Debt | 45.71B | 48.66B | 57.91B | 67.40B | 76.72B |
| Total Liabilities | 46.28B | 49.15B | 58.62B | 67.82B | 78.00B |
| Stockholders Equity | 2.40B | 2.64B | 2.76B | 2.98B | 2.60B |
Cash Flow | |||||
| Free Cash Flow | 441.00M | 459.00M | 676.00M | 305.00M | 702.00M |
| Operating Cash Flow | 441.00M | 459.00M | 676.00M | 305.00M | 702.00M |
| Investing Cash Flow | 2.71B | 8.47B | 7.36B | 10.59B | 6.67B |
| Financing Cash Flow | -3.15B | -9.62B | -10.05B | -9.66B | -7.33B |
Navient Technical Analysis
Negative
8.17
Price Trends
9.49
Negative
10.82
Negative
11.84
Negative
Market Momentum
-0.37
Negative
34.00
Neutral
59.88
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 8.17 is below the 20-day moving average (MA) of 8.28, below the 50-day MA of 9.49, and below the 200-day MA of 11.84, indicating a bearish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 34.00 is Neutral, neither overbought nor oversold. The STOCH value of 59.88 is Neutral, 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 | $6.22B | 10.25 | 23.40% | 6.07% | 9.51% | 29.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $4.05B | 6.01 | 31.14% | 1.88% | 0.59% | -1.11% | |
61 Neutral | $1.67B | 16.10 | 9.47% | ― | 9.68% | 94.85% | |
53 Neutral | $4.60B | 11.27 | 11.96% | 0.87% | 9.14% | 291.99% | |
49 Neutral | $776.88M | -54.17 | -3.16% | 4.95% | -25.22% | -174.34% | |
49 Neutral | $2.56B | 78.35 | 7.29% | ― | 73.29% | ― |
* Financial Sector Average
NAVI
Navient
8.17
-4.32
-34.58%
NNI
Nelnet
128.32
15.50
13.74%
SLM
SLM
20.43
-8.73
-29.95%
LC
LendingClub
14.54
3.69
34.01%
OMF
OneMain Holdings
53.08
6.28
13.41%
UPST
Upstart Holdings
26.09
-23.01
-46.86%
Navient Corporate Events
Business Operations and StrategyExecutive/Board Changes
Navient Restructures Leadership, Promotes New Chief Financial Officer
Positive
Jan 8, 2026
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, ch...
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.