Navient (NAVI) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: 4.95%
• Average Volume (3M): 980.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• 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: 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: 36.60
• Enterprise Value/Revenue: 13.41
• Enterprise Value/Gross Profit: 103.04
• Enterprise Value/Ebitda: -594.16
• 1Y Price Target: $13.00
• Price Target Upside: -0.91% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $12.50 ▼(-4.73% Downside)

The score is primarily held down by weak financial performance (declining revenue, negative profitability/ROE, and high leverage). Technicals and valuation are only neutral (mixed momentum and a negative P/E despite a ~5% dividend yield), while earnings-call and corporate updates provide some support via cost reductions, origination growth, and strategic/leadership actions but do not fully offset credit/provision and profitability concerns.

Positive Factors

Improving Free Cash Flow

Sustained 41% TTM free cash flow growth signals improving cash generation independent of accounting earnings. This durable cash conversion supports deleveraging, funding originations and ABS activity, and provides flexibility for buybacks or reinvestment even amid profit volatility.

High Gross Margin

A 68%+ gross margin reflects structural pricing power in loan servicing and asset recovery, indicating low direct cost intensity. Over months, this margin buffer helps absorb higher provisions or origination investments and supports recovery of operating leverage if revenues stabilize.

Strategic Shift & Leadership Realignment

Phase 2 strategy and a January leadership realignment create a structural focus on growth and efficiency, with separate CFO for Earnest and dedicated operational ownership. These changes can materially improve execution, capital allocation, and business unit accountability over the coming quarters.

Negative Factors

High Financial Leverage

A 2.02 debt-to-equity ratio, while improved, remains elevated and constrains financial flexibility. High leverage increases refinancing and covenant risk, limits ability to absorb loss shocks, and makes deleveraging or investment programs more costly during adverse credit cycles.

Declining Revenue & Negative Profitability

Persisting revenue declines and a negative net margin indicate the firm struggles to convert strong gross margins into bottom-line profit. Structural revenue shrinkage pressures scale economics, complicates reinvestment and debt paydown plans, and risks continued earnings weakness.

Elevated Credit Losses and Provisions

Sustained elevated delinquencies and large provisions (e.g., $151M) point to ongoing credit stress in loan books. These structural credit dynamics reduce net income, consume capital, and increase earnings volatility, making longer-term profitability and capital returns less certain.

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: Positive
• Last Price: 13.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 13.12 is above the 20-day moving average (MA) of 12.96, above the 50-day MA of 12.35, and above the 200-day MA of 12.69, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 59.40 is Neutral, neither overbought nor oversold. The STOCH value of 53.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NAVI.

Navient Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMF	79 Outperform	$8.28B	12.06	21.41%	6.07%	9.51%	29.38%
NNI	78 Outperform	$4.85B	12.08	12.27%	0.87%	9.14%	291.99%
LC	70 Outperform	$2.29B	23.26	7.40%	―	9.68%	94.85%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SLM	67 Neutral	$5.62B	9.84	27.85%	1.88%	0.59%	-1.11%
UPST	55 Neutral	$4.90B	222.17	4.81%	―	73.29%	―
NAVI	48 Neutral	$1.25B	-24.56	-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.