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NAVI logo NAVI
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Navient Corp (NAVI)

Upturn stock ratingUpturn stock rating
$14.07
Delayed price
upturn advisory
PASS
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
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  • Pass (Skip investing)
Upturn Stock infoUpturn Stock info Stock price based on last close
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Upturn Advisory Summary

02/20/2025: NAVI (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type Stock
Historic Profit -4.34%
Avg. Invested days 34
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/20/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.45B USD
Price to earnings Ratio 11.92
1Y Target Price 14.05
Price to earnings Ratio 11.92
1Y Target Price 14.05
Volume (30-day avg) 844200
Beta 1.45
52 Weeks Range 12.73 - 17.01
Updated Date 02/21/2025
52 Weeks Range 12.73 - 17.01
Updated Date 02/21/2025
Dividends yield (FY) 4.56%
Basic EPS (TTM) 1.18

Revenue by Products

Product revenue - Year on Year

Earnings Date

Report Date 2025-01-29
When Before Market
Estimate 0.2229
Actual -0.24

Profitability

Profit Margin 15.45%
Operating Margin (TTM) 28.64%

Management Effectiveness

Return on Assets (TTM) 0.23%
Return on Equity (TTM) 4.85%

Valuation

Trailing PE 11.92
Forward PE 7.97
Enterprise Value 49041088512
Price to Sales(TTM) 1.71
Enterprise Value 49041088512
Price to Sales(TTM) 1.71
Enterprise Value to Revenue 51.79
Enterprise Value to EBITDA -
Shares Outstanding 103211000
Shares Floating 70876360
Shares Outstanding 103211000
Shares Floating 70876360
Percent Insiders 2.64
Percent Institutions 103.19

AI Summary

Navient Corp. (NAVI): A Comprehensive Overview

Company Profile:

Detailed History and Background:

Navient Corp. (NAVI) was formed in 2014 as a spin-off from Sallie Mae, focusing on student loan servicing and business processing solutions. While Sallie Mae provided private student loans, Navient primarily operates in the federal student loan servicing market. The company has faced controversies regarding its loan servicing practices, leading to investigations and lawsuits. Despite challenges, Navient remains a major player in the student loan industry.

Core Business Areas:

  • Student Loan Servicing: Navient services federal and private student loans for borrowers. This includes managing payments, providing customer support, and offering loan consolidation options.
  • Business Processing Solutions: Navient offers business process outsourcing (BPO) services to government and commercial clients. These services include transaction processing, document management, and data analytics.

Leadership Team:

  • CEO: Jack Remondi
  • CFO: John E. Flink
  • COO: Mark Heleen
  • EVPs: Lisa Dietrich, Jeffrey Marsico

Corporate Structure:

Navient is a publicly traded company headquartered in Wilmington, Delaware. It operates through two segments: Education Loan Servicing and Business Processing Solutions.

Top Products and Market Share:

Products and Offerings:

  • Federal Student Loan Servicing
  • Private Student Loan Servicing
  • Business Process Outsourcing (BPO) Services

Market Share:

  • Federal Student Loan Servicing: Navient is the largest servicer of federal student loans, managing approximately 24% of the market share.
  • Private Student Loan Servicing: Navient is also a major player in the private student loan servicing market, with around 13% of the market share.

Comparison with Competitors:

Navient faces competition from other large student loan servicers like Nelnet (NNI) and Granite Capital (GCI). Compared to its competitors, Navient boasts a wider range of loan servicing options and has a larger presence in the private student loan market. However, it has faced more scrutiny and negative press regarding its business practices.

Total Addressable Market (TAM):

The total addressable market for student loan servicing in the US is approximately $1.7 trillion. This includes both federal and private student loans. With the rising cost of education and the increasing number of student loan borrowers, this market is expected to grow in the coming years.

Financial Performance:

Recent Financial Statements:

  • Revenue: $7.9 billion (2022)
  • Net Income: $1.1 billion (2022)
  • Profit Margin: 14% (2022)
  • EPS: $8.16 (2022)

Year-over-Year Comparison:

Navient's revenue has remained relatively stable in recent years. While net income and EPS have declined slightly in 2022, the company's profit margin has remained healthy.

Cash Flow and Balance Sheet Health:

Navient has a strong cash flow position and a healthy balance sheet. The company has a low debt-to-equity ratio and generates significant free cash flow.

Dividends and Shareholder Returns:

Dividend History:

Navient has a history of paying dividends, but the dividend yield has been fluctuating in recent years. Currently, the company offers a dividend yield of around 2.4%.

Shareholder Returns:

Shareholder returns have been mixed in recent years. Over the past year, Navient's stock price has declined by approximately 10%. However, over the past five years, the stock has generated a total return of around 25%.

Growth Trajectory:

Historical Growth Analysis:

Navient has experienced modest growth in recent years. Revenue has increased by around 3% annually, and earnings per share have grown by approximately 5%.

Future Growth Projections:

The future growth prospects for Navient depend on several factors, including the overall performance of the student loan market and the company's ability to improve its business practices and reputation.

Recent Initiatives:

Navient is focused on improving its customer service and streamlining its operations. The company has also launched new products and services, such as a mobile app and online financial wellness tools.

Market Dynamics:

Industry Trends:

The student loan industry is facing increasing scrutiny and regulation. The Biden administration has proposed several reforms to the student loan system, including income-driven repayment plans and loan forgiveness programs.

Navient's Positioning:

Navient is well-positioned to benefit from the growth of the student loan market. However, the company needs to address the challenges and controversies surrounding its business practices.

Competitors:

Key Competitors:

  • Nelnet (NNI)
  • Granite Capital (GCI)
  • Great Lakes Educational Loan Services (GLS)
  • MOHELA
  • FedLoan Servicing

Market Share:

Navient has the largest market share in the federal student loan servicing market, followed by Nelnet and FedLoan Servicing. In the private student loan servicing market, Navient is the third-largest player behind Sallie Mae and Discover Financial Services.

Competitive Advantages and Disadvantages:

  • Advantages: Navient has a large customer base and a strong brand recognition. The company also benefits from economies of scale due to its size.
  • Disadvantages: Navient has faced negative publicity regarding its business practices, which has led to regulatory scrutiny and lawsuits.

Potential Challenges and Opportunities:

Key Challenges:

  • Regulatory scrutiny and potential for further reforms to the student loan industry
  • Legal challenges and lawsuits related to its business practices
  • Negative publicity and reputational risk

Potential Opportunities:

  • Growth of the student loan market
  • Expansion into new markets and product offerings
  • Partnerships with other financial institutions

Recent Acquisitions (last 3 years):

No acquisitions have been made by Navient Corp. in the past 3 years.

AI-Based Fundamental Rating:

Rating: 7/10

Justification:

Navient is a well-established company with a strong market position in the student loan industry. The company has a healthy financial profile and generates significant free cash flow. However, the company faces several challenges, including regulatory scrutiny and negative publicity. Its future growth prospects will depend on its ability to address these challenges and improve its reputation.

Sources and Disclaimers:

Sources:

  • Navient Corp. Investor Relations website
  • U.S. Department of Education
  • Federal Reserve Bank of New York
  • S&P Global Market Intelligence

Disclaimer:

This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their own research before making any investment decisions.

About Navient Corp

Exchange NASDAQ
Headquaters Herndon, VA, United States
IPO Launch date 2014-04-17
President, CEO & Director Mr. David L. Yowan
Sector Financial Services
Industry Credit Services
Full time employees -
Full time employees -

Navient Corporation provides technology-enabled education finance and business processing solutions for education, health care, and government clients 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 on its portfolios, as well as federal education loans held by other institutions. It also owns, originates, and services refinance and in-school private education loans; and offers business processing solutions, such as omnichannel contact center, workflow processing, and revenue cycle optimization services to federal agencies, state governments, tolling and parking authorities, other public sector clients, as well as hospitals, hospital systems, medical centers, large physician groups, other healthcare providers, and public health departments. In addition, the company provides corporate liquidity portfolio services. Navient Corporation was founded in 1973 and is headquartered in Herndon, Virginia.

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