Navient (NAVI) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: 4.94%
• Average Volume (3M): 881.88K
• 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): -0.84
• Shares Outstanding: 97,506,710
• 10 Day Avg. Volume: 813,786
• 30 Day Avg. Volume: 881,879
• 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: 37.72
• Enterprise Value/Revenue: 13.41
• Enterprise Value/Gross Profit: 103.04
• Enterprise Value/Ebitda: -594.16
• 1Y Price Target: $12.86
• Price Target Upside: -0.69% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.12
• Revenue Forecast (FY): $668.82M

• Rating: 55 Neutral
• Price Target: $12.50 ▼(-3.47% Downside)

Navient's overall stock score reflects significant financial challenges, including high leverage and negative profitability, despite positive developments in loan origination and strategic initiatives. Technical indicators and valuation metrics provide a mixed outlook, while the earnings call and corporate events suggest potential for future improvement.

Positive Factors

Expense Reduction Success

Navient's success in reducing expenses enhances its operational efficiency, potentially leading to improved profitability and financial stability over the long term.

Record Loan Origination Growth

Sustained growth in loan origination indicates strong demand for Navient's services, supporting revenue growth and market position in the education finance sector.

Phase 2 Strategy Update

The Phase 2 Strategy Update aims to align Navient with industry peers, potentially increasing growth rates and recurring fee income, strengthening its competitive position.

Negative Factors

High Leverage

High leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, which could impact long-term financial health.

Declining Revenue

A continued decline in revenue suggests challenges in maintaining market share and competitiveness, potentially affecting future growth and profitability.

Negative Profitability

Negative profitability indicates operational inefficiencies and challenges in cost management, which could hinder long-term sustainability and investor confidence.

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: 12.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 12.95 is above the 20-day moving average (MA) of 12.06, above the 50-day MA of 12.15, and above the 200-day MA of 12.70, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 64.00 is Neutral, neither overbought nor oversold. The STOCH value of 68.63 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	81 Outperform	$7.59B	10.94	21.41%	5.99%	9.51%	29.38%
NNI	78 Outperform	$4.66B	11.10	12.27%	0.89%	9.14%	291.99%
LC	70 Outperform	$2.21B	22.24	7.40%	―	9.68%	94.85%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SLM	67 Neutral	$5.33B	9.24	27.85%	1.90%	0.59%	-1.11%
NAVI	55 Neutral	$1.21B	―	-1.95%	4.94%	-25.22%	-174.34%
UPST	55 Neutral	$4.75B	215.67	4.81%	―	73.29%	―

Navient Corporate Events

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.