Navient (NAVI) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: 5.24%
• Average Volume (3M): 700.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -25.22%
• EPS Growth: -174.34%
• Country: US
• Employees: 2,100
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -0.84
• Shares Outstanding: 97,506,710
• 10 Day Avg. Volume: 622,294
• 30 Day Avg. Volume: 700,253
• 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: 41.38
• Enterprise Value/Revenue: 13.41
• Enterprise Value/Gross Profit: 103.04
• Enterprise Value/Ebitda: -594.16
• 1Y Price Target: $12.17
• Price Target Upside: 6.20% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.12
• Revenue Forecast (FY): $670.58M

• Rating: 44 Neutral
• Price Target: $11.50 ▲(0.35% Upside)

Navient's overall stock score is primarily impacted by its challenging financial performance, with declining revenue, high leverage, and negative net income. Technical indicators suggest a bearish trend, while valuation metrics indicate potential overvaluation despite a high dividend yield. The earnings call highlights both positive developments and significant financial challenges.

Positive Factors

Loan Origination Growth

Consistent growth in loan origination indicates strong demand and effective market penetration, supporting future revenue streams.

Expense Reduction

Effective cost management enhances profitability and operational efficiency, providing a buffer against revenue fluctuations.

Cash Flow Improvement

Improved cash flow projections enhance financial flexibility and support strategic investments and debt servicing.

Negative Factors

High Leverage

High leverage can strain financial resources and limit growth opportunities, posing a risk to long-term stability.

Negative Net Income

Persistent negative net income undermines profitability, affecting investor confidence and limiting reinvestment capacity.

Elevated Delinquency Rates

High delinquency rates increase credit risk and provision expenses, impacting financial performance and cash flow.

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

Navient faces significant challenges with declining revenue and profitability, high leverage, and negative net income. Improvements in cash flow generation are noted, but high debt levels and a negative return on equity impact financial health.

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: 11.46
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 11.46 is below the 20-day moving average (MA) of 12.11, below the 50-day MA of 12.52, and below the 200-day MA of 12.94, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 37.72 is Neutral, neither overbought nor oversold. The STOCH value of 28.95 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
OMF	77 Outperform	$6.72B	9.69	21.41%	7.27%	9.51%	29.38%
NNI	72 Outperform	$4.50B	10.70	12.27%	0.88%	9.14%	291.99%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SLM	64 Neutral	$5.46B	9.47	27.85%	1.95%	0.59%	-1.11%
LC	63 Neutral	$1.99B	18.22	7.40%	―	9.68%	94.85%
UPST	54 Neutral	$3.77B	158.32	4.81%	―	73.29%	―
NAVI	44 Neutral	$1.11B	―	-1.95%	5.24%	-25.22%	-174.34%

Navient Corporate Events

Navient Corporation Reports Q3 2025 Financial Results

Navient Corporation is a company that assists students and families in managing the costs of higher education through responsible lending, refinancing options, and servicing oversight, operating primarily in the financial services sector.

Navient’s Earnings Call: Balancing Growth and Challenges

Navient Corporation’s latest earnings call revealed a mixed sentiment, reflecting both significant achievements and ongoing financial challenges. While the company celebrated notable successes in loan origination growth, expense reduction, and cash flow projections, these were counterbalanced by a core loss per share, elevated delinquency rates, high provision expenses, and macroeconomic uncertainties. The overall sentiment was balanced, with positive developments being offset by substantial financial hurdles.

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.