Navient (NAVI) AI Stock Analysis

• Market Cap: $1.57B
• Dividend Yield: 4.18%
• Average Volume (3M): 681.43K
• Price to Earnings (P/E): 30.7
• Beta (1Y): 1.00
• Revenue Growth: -21.19%
• EPS Growth: -67.35%
• Country: US
• Employees: 2,100
• Sector: Financial
• Sector Strength: 80
• Industry: Financial - Credit Services
• EPS (TTM): 0.25
• Shares Outstanding: 101,150,215
• 10 Day Avg. Volume: 886,044
• 30 Day Avg. Volume: 681,435
• PEG Ratio: 0.48
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.66
• Enterprise Value/Market Cap: 42.98
• Enterprise Value/Revenue: 4.10
• Enterprise Value/Gross Profit: 21.18
• Enterprise Value/Ebitda: 4.91
• 1Y Price Target: $13.69
• Price Target Upside: -9.93% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: $14.50 ▼(-4.61%Downside)

Navient's overall stock score reflects a combination of strong technical momentum and strategic corporate actions, weighed down by high leverage and valuation concerns. The company's mixed financial performance and macroeconomic uncertainties further temper the outlook.

Positive Factors

Financial Performance

The main driver of better EPS was higher FFELP spread of 61 bps, above the estimate of 50 bps.

Loan Origination

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

Negative Factors

Earnings Guidance

The 2025 EPS guide came in lighter at $1.00-1.20 on weaker NIM.

Profitability Challenges

Core profitability still under pressure, waiting on NAVI's plans to drive profitable growth.

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 primarily through servicing student loans and collecting fees for its loan management services. The company earns revenue by receiving servicing fees from the U.S. Department of Education for managing federal student loans as well as from private lenders for handling private education loans. Additionally, Navient generates income through asset recovery services, where it assists in the collection of defaulted loans, earning commissions based on the amounts recovered. Significant factors contributing to Navient's earnings include interest income from loan portfolios it holds and partnerships with educational and financial institutions that leverage its loan servicing expertise.

Navient Financial Statement Overview

Summary

Navient's financial performance is mixed. Strong gross margins and operational efficiency are countered by declining revenues and high leverage. The balance sheet indicates high debt levels, which could be risky, but the company generates substantial cash flows. Investors should be cautious given the potential volatility.

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	1.16B	3.81B	2.21B	1.69B
Gross Profit	3.20B	3.49B	356.00M	1.74B	1.44B	979.00M
EBITDA	2.97B	3.47B	3.95B	2.93B	2.66B	0.00
Net Income	56.00M	131.00M	228.00M	645.00M	717.00M	412.00M
Balance Sheet
Total Assets	50.95B	51.79B	61.38B	70.80B	80.61B	87.41B
Cash, Cash Equivalents and Short-Term Investments	2.06B	2.10B	839.00M	1.53B	905.00M	1.18B
Total Debt	47.24B	47.91B	57.30B	66.90B	76.98B	83.94B
Total Liabilities	48.36B	49.15B	58.62B	67.82B	78.00B	84.97B
Stockholders Equity	2.59B	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: Positive
• Last Price: 15.20
• 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 15.2 is above the 20-day moving average (MA) of 14.12, above the 50-day MA of 13.52, and above the 200-day MA of 13.66, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 68.38 is Neutral, neither overbought nor oversold. The STOCH value of 71.35 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
SEZL	78 Outperform	$5.46B	56.14	137.28%	―	91.69%	702.31%
NAVI	69 Neutral	$1.57B	30.67	2.09%	4.18%	-21.19%	-67.35%
OMF	68 Neutral	$7.01B	12.47	17.46%	7.06%	9.07%	―
Sector *	67 Neutral	$16.81B	11.85	9.77%	3.76%	12.07%	-8.35%
SLM	66 Neutral	$7.22B	12.39	27.60%	1.54%	-0.70%	-12.72%
LC	62 Neutral	$1.40B	27.89	3.86%	―	5.72%	31.82%
CURR	40 Underperform	$151.41M	―	-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.