Nelnet (NNI) AI Stock Analysis

• Market Cap: $4.59B
• Dividend Yield: 0.88%
• Average Volume (3M): 90.04K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.64
• Revenue Growth: 9.14%
• EPS Growth: 291.99%
• Country: US
• Employees: 6,739
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 2.95
• Shares Outstanding: 25,316,448
• 10 Day Avg. Volume: 115,168
• 30 Day Avg. Volume: 90,043
• PEG Ratio: 0.19
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 2.12
• P/FCF Ratio: 6.10
• Enterprise Value/Market Cap: 2.51
• Enterprise Value/Revenue: 5.75
• Enterprise Value/Gross Profit: 8.04
• Enterprise Value/Ebitda: 17.67
• 1Y Price Target: $135.00
• Price Target Upside: 5.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 6.53
• Revenue Forecast (FY): $1.50B

• Rating: 72 Outperform
• Price Target: $143.00 ▲(11.92% Upside)

Nelnet's overall stock score is driven primarily by its strong financial performance, characterized by solid profitability and cash generation. The technical analysis provides mixed signals, with moderate upward momentum. Valuation metrics suggest the stock is reasonably priced, though the dividend yield is modest. High debt levels remain a potential risk that investors should monitor.

Positive Factors

Cash Generation

Strong cash generation enhances financial flexibility, allowing Nelnet to invest in growth opportunities and manage debt effectively.

Profitability

High profit margins indicate efficient operations and pricing power, supporting sustainable earnings and potential for reinvestment.

Strategic Expansion

The acquisition expands Nelnet's market reach into Canada, diversifying its portfolio and enhancing its service offerings in the education sector.

Negative Factors

High Debt Levels

While improving, high debt levels can limit financial flexibility and increase risk, especially in volatile economic conditions.

Operating Cash Flow Decline

A decline in operating cash flow may affect liquidity and the ability to fund operations, potentially constraining growth and investment.

Net Profit Margin Pressure

Decreasing net profit margins suggest rising costs or pricing pressures, which could impact future profitability if not addressed.

Nelnet Business Overview & Revenue Model

Company Description

Nelnet (NNI) is a diversified education and financial services company based in the United States. Primarily focused on the education sector, Nelnet provides a range of services including student loan servicing, education financing, and technology solutions designed to enhance the educational experience. The company operates in sectors such as student loan management, payment processing, and education-related technology, catering to students, educational institutions, and lenders alike.

How the Company Makes Money

Nelnet generates revenue through several key streams. The primary source of income is derived from its student loan servicing operations, where it manages federal and private student loans for various lenders and educational institutions, earning servicing fees. Additionally, Nelnet earns interest income from its own loan portfolio, which includes private student loans. The company also generates revenue from technology services provided to educational institutions, including payment processing solutions and enterprise resource management systems. Partnerships with educational institutions and loan originators enhance its service offerings and expand its market reach. Furthermore, Nelnet's strategic investments in technology and education-related ventures contribute to its earnings by diversifying its revenue base and creating new business opportunities.

Nelnet Financial Statement Overview

Summary

Nelnet exhibits strong financial performance with solid profitability and cash generation. The income statement shows strong profitability with a TTM gross profit margin of 61.69% and a net profit margin of 25.17%. The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 2.14, showing improvement. Cash flow highlights robust free cash flow growth of 278.5%. However, high debt levels remain a potential risk.

Income Statement

Nelnet's income statement shows strong profitability with a TTM gross profit margin of 61.69% and a net profit margin of 25.17%. The company has demonstrated consistent revenue growth, with a TTM revenue growth rate of 6.19%. EBIT and EBITDA margins have also improved significantly, indicating efficient operations. However, the net profit margin has decreased compared to previous years, suggesting some pressure on net earnings.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 2.14 in the TTM period, showing improvement from previous years. Return on equity is healthy at 12.40%, indicating effective use of equity. However, the high level of debt remains a concern, which could pose risks if not managed properly.

Cash Flow

Nelnet's cash flow statement highlights robust free cash flow growth of 278.5% in the TTM period, showcasing strong cash generation capabilities. The free cash flow to net income ratio is 1.10, indicating efficient conversion of earnings into cash. However, the operating cash flow has decreased, which could impact liquidity if the trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.01B	1.85B	1.81B	1.82B	1.42B	1.37B
Gross Profit	1.44B	1.11B	961.15M	1.35B	1.25B	979.20M
EBITDA	653.16M	361.11M	214.11M	678.09M	634.43M	648.96M
Net Income	433.86M	184.04M	89.83M	406.90M	393.29M	352.44M
Balance Sheet
Total Assets	13.88B	13.78B	16.71B	19.37B	21.68B	22.65B
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.18B	1.11B	1.51B	1.06B	469.86M
Total Debt	7.82B	8.31B	11.83B	14.64B	17.65B	19.34B
Total Liabilities	10.29B	10.48B	13.51B	16.17B	18.73B	20.02B
Stockholders Equity	3.65B	3.35B	3.25B	3.20B	2.95B	2.63B
Cash Flow
Free Cash Flow	464.54M	641.99M	358.92M	624.64M	421.38M	235.79M
Operating Cash Flow	465.90M	662.89M	432.98M	684.06M	480.33M	349.10M
Investing Cash Flow	853.91M	2.41B	1.94B	2.27B	1.19B	621.22M
Financing Cash Flow	-1.45B	-3.17B	-2.70B	-2.79B	-1.43B	-1.23B

Nelnet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 127.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NNI, the sentiment is Negative. The current price of 127.77 is below the 20-day moving average (MA) of 129.06, below the 50-day MA of 128.37, and above the 200-day MA of 119.35, indicating a neutral trend. The MACD of -0.81 indicates Positive momentum. The RSI at 39.38 is Neutral, neither overbought nor oversold. The STOCH value of 27.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NNI.

Nelnet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENVA	73 Outperform	$3.08B	11.41	23.81%	―	21.10%	76.12%
NNI	72 Outperform	$4.59B	10.93	12.27%	0.88%	9.14%	291.99%
BFH	71 Outperform	$2.85B	6.35	14.81%	1.38%	-4.32%	58.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SLM	64 Neutral	$5.66B	9.83	27.85%	1.95%	0.59%	-1.11%
CACC	60 Neutral	$4.74B	11.38	28.14%	―	10.30%	154.64%
NAVI	44 Neutral	$1.16B	―	-1.95%	5.24%	-25.22%	-174.34%

Nelnet Corporate Events

Nelnet’s Q3 2025 Earnings Surge with Strategic Gains

Nelnet, a prominent player in the financial services sector, specializes in loan servicing, consumer lending, payments, and technology solutions. The company operates through various segments, including Asset Generation and Management, Nelnet Bank, Loan Servicing and Systems, and Education Technology Services and Payments.

Nelnet Bank Releases Q3 2025 Financial Report

On October 29, 2025, Nelnet Bank filed its Consolidated Reports of Condition and Income for the quarter ended September 30, 2025, with the FDIC. This filing, known as the Call Report, is publicly accessible on the FDIC’s website and reflects Nelnet Bank’s financial standing, impacting its operations and transparency with stakeholders.

The most recent analyst rating on (NNI) stock is a Buy with a $144.00 price target. To see the full list of analyst forecasts on Nelnet stock, see the NNI Stock Forecast page.

Nelnet Subsidiary Acquires Finastra’s Canadian Loan Business

On October 23, 2025, Nelnet, Inc. announced that its subsidiary, Nelnet Canada, entered into a definitive agreement to acquire Finastra’s Canadian student loan servicing business for CAD $130 million. This acquisition, expected to close in the first quarter of 2026, will enhance Nelnet’s presence in the Canadian market by leveraging Finastra’s established servicing solutions for 2.4 million borrowers. The move aligns with Nelnet’s strategy to expand its loan servicing capabilities and support its mission in the education sector, while maintaining independent operations in Canada.

The most recent analyst rating on (NNI) stock is a Buy with a $144.00 price target. To see the full list of analyst forecasts on Nelnet stock, see the NNI Stock Forecast page.

Nelnet Gains $8M from Investee Equity Raise

Nelnet, Inc. has an equity investment in a third-party technology company. On August 11, 2025, this investee completed an equity raise, allowing Nelnet to redeem part of its investment for $10 million, recognizing an $8 million pre-tax gain. Additionally, due to the investee’s equity raise, Nelnet expects to recognize a further $22 million pre-tax gain in the third quarter of 2025, adjusting the carrying value of its remaining investment to reflect the new transaction value. This transaction leaves Nelnet with a remaining investment carrying amount of approximately $32 million.

The most recent analyst rating on (NNI) stock is a Hold with a $106.00 price target. To see the full list of analyst forecasts on Nelnet stock, see the NNI Stock Forecast page.