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Upturn AI SWOT - About
NNI 
Nelnet Inc (NNI)
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Upturn Advisory Summary
02/24/2025: NNI (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit -11.56% | Avg. Invested days 36 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 02/24/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 4.03B USD | Price to earnings Ratio 22.05 | 1Y Target Price 120 |
Price to earnings Ratio 22.05 | 1Y Target Price 120 | ||
Volume (30-day avg) 39323 | Beta 0.89 | 52 Weeks Range 91.30 - 126.68 | Updated Date 04/1/2025 |
52 Weeks Range 91.30 - 126.68 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 1.01% | Basic EPS (TTM) 5.03 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 13.58% | Operating Margin (TTM) 21.53% |
Management Effectiveness
Return on Assets (TTM) 1.15% | Return on Equity (TTM) 5.41% |
Valuation
Trailing PE 22.05 | Forward PE 15.75 | Enterprise Value 12098965504 | Price to Sales(TTM) 2.97 |
Enterprise Value 12098965504 | Price to Sales(TTM) 2.97 | ||
Enterprise Value to Revenue 10.58 | Enterprise Value to EBITDA - | Shares Outstanding 25634400 | Shares Floating 12627805 |
Shares Outstanding 25634400 | Shares Floating 12627805 | ||
Percent Insiders 38.41 | Percent Institutions 49.34 |
Analyst Ratings
Rating 3 | Target Price 110 | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Nelnet Inc
Company Overview
History and Background
Nelnet, Inc. was founded in 1978 as Union Bank and Trust Company of Nebraska. It has evolved from a student loan servicer to a diversified company with interests in loan servicing, education technology, renewable energy, and fiber internet.
Core Business Areas
- Nelnet Diversified Services: Provides loan servicing for student loans, including payment processing, customer service, and default prevention. Also includes Nelnet Bank (student loan originations) and Nelnet consumer finance.
- Nelnet Business Services: Offers tuition payment processing, education technology solutions, and other services for K-12 schools and higher education institutions. Brands include FACTS, RenWeb, and Blackbaud Tuition Management.
- Nelnet Renewable Energy: Invests in renewable energy projects, primarily solar energy.
- Nelnet Fiber: Provides fiber internet services in select markets.
Leadership and Structure
Nelnet is led by Chairman and CEO Michael Dunlap. The company has a traditional corporate structure with a board of directors and executive management team overseeing various business units.
Top Products and Market Share
Key Offerings
- Student Loan Servicing: Nelnet is one of the largest student loan servicers in the U.S., handling billions of dollars in loan payments annually. While exact market share fluctuates based on loan portfolio transfers, Nelnet is consistently a top servicer. Competitors include MOHELA, EdFinancial, and Aidvantage (formerly Navient).
- FACTS Tuition Management: FACTS is a leading provider of tuition management and payment processing services for K-12 schools. Market share data is not publicly available, but FACTS is considered a dominant player in this niche market. Competitors include Blackbaud Tuition Management and Smart Tuition.
- Nelnet Bank: Nelnet Bank originates private student loans, competing with other lenders such as Sallie Mae (SLM), Discover (DFS) and SoFi (SOFI)
Market Dynamics
Industry Overview
The student loan servicing industry is highly regulated and subject to government policy changes. The education technology market is growing, driven by increasing demand for digital learning solutions. The renewable energy sector is expanding rapidly due to environmental concerns and government incentives. Fiber internet is also rapidly expanding due to greater need to bandwidth.
Positioning
Nelnet is positioned as a diversified company with a strong presence in student loan servicing and education technology. Its investments in renewable energy and fiber internet provide growth opportunities. It leverages its student loan servicing experience for other sectors. Nelnet diversifies to reduce reliance on the volatile student loan servicing business.
Total Addressable Market (TAM)
The TAM for Nelnet spans several sectors. Student loan servicing is tied to the outstanding student loan debt, which is over $1.7 trillion. Education technology is estimated to be in the tens of billions of dollars. Renewable energy investment is another massive market. Nelnet is well-positioned within the EdTech TAM with its leading market share in the tuition management space.
Upturn SWOT Analysis
Strengths
- Diversified revenue streams
- Established relationships with schools and borrowers
- Strong technology platform
- Experienced management team
- Investments in growing industries
Weaknesses
- Reliance on government policies and regulations
- Exposure to credit risk in loan servicing
- Competition in the education technology market
- Complexity of business model
- Low brand awareness outside of specific industries
Opportunities
- Expanding education technology offerings
- Acquiring new businesses in complementary markets
- Increasing investments in renewable energy
- Leveraging technology to improve efficiency
- Partnerships with other financial institutions
Threats
- Changes in student loan regulations
- Increased competition from other servicers and EdTech providers
- Economic downturn affecting borrower repayment ability
- Cybersecurity risks
- Rising interest rates
Competitors and Market Share
Key Competitors
- SLM
- DFS
- SOFI
- FAFSA
Competitive Landscape
Nelnet's advantages include its diversified business model, established relationships, and strong technology platform. Disadvantages include reliance on government policies and intense competition in certain markets.
Major Acquisitions
RAdata, Inc
- Year: 2023
- Acquisition Price (USD millions): 20
- Strategic Rationale: Enhance capabilities in document management and automation for the financial services industry.
Growth Trajectory and Initiatives
Historical Growth: Nelnet's growth has been driven by acquisitions, organic growth in its core businesses, and investments in new ventures. Consult financial statements for precise metrics.
Future Projections: Future growth projections are based on analyst estimates and management guidance. These projections are subject to change.
Recent Initiatives: Recent strategic initiatives include acquisitions in the education technology sector, continued investments in renewable energy, and expansion of fiber internet services.
Summary
Nelnet is a diversified financial services and technology company with a strong presence in student loan servicing and education technology. Its diversification strategy mitigates risk associated with the heavily regulated student loan sector. Strong relationships and platform helps drive growth and market positioning, but Nelnet needs to stay agile given changing government policies and competition. Nelnet has diversified its business to include Nelnet Bank, Tuition Management systems, Renewable Energy, and Fiber.
Similar Companies
- SLM
- DFS
- SOFI
- FAFSA
Sources and Disclaimers
Data Sources:
- Nelnet Inc. SEC Filings
- Company Website
- Analyst Reports
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market share data are estimates and may vary. Financial data should be verified with official company filings.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Nelnet Inc
Exchange NYSE | Headquaters Lincoln, NE, United States | ||
IPO Launch date 2003-12-11 | CEO - | ||
Sector Financial Services | Industry Credit Services | Full time employees 6739 | Website https://nelnetinc.com |
Full time employees 6739 | Website https://nelnetinc.com | ||
Nelnet, Inc. engages in loan servicing, education technology services, and payment businesses worldwide. The company operates through four segments: Loan Servicing and Systems, Education Technology Services and Payments, Asset Generation and Management, and Nelnet Bank. The Loan Servicing and Systems segment provides loan conversion, application processing, borrower updates, customer, payment processing, due diligence procedures, funds management reconciliation, and claim processing services. This segment also offers student loan servicing software; and business process outsourcing services primarily in contact center management, such as inbound calls, outreach campaigns and sales, and interacting with customers through multi-channels, and processing and administrative services. The Education Technology Services and Payments segment provides financial management services; school information system software; a donation platform; education technology solutions; and customized professional development and coaching, and advanced learning and educational instruction services. This segment also offers tuition payment plans, and service and technology for student billings, payments, and refunds; solutions for in-person, online, and mobile payment experiences on campus; payment processing services, such as credit card and electronic transfer; learning management system; an integrated commerce payment platform; and a school management platform that provides administrative, information and financial management, and communication functions for K-12 schools. The Asset Generation and Management segment acquires, manages, and owns loan assets. The Nelnet Bank segment operates as an internet industrial bank. It also offers investment advisory, investment, and reinsurance services, as well as engages in the real estate investment; and solar engineering, procurement, and construction businesses. The company was incorporated in 1977 and is headquartered in Lincoln, Nebraska.
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