📊 NNI Key Takeaways
Is NNI a Good Investment? Thesis Analysis
Nelnet demonstrates exceptional profitability with 50.3% net margins and strong cash generation (396.7M FCF), driven by 140.2% revenue growth. However, the elevated leverage (2.11x Debt/Equity) and modest interest coverage (2.5x) warrant monitoring, particularly given the capital-intensive nature of the business.
Why Buy NNI? Key Strengths
- Exceptional revenue growth of 140.2% YoY indicating strong market demand and business expansion
- Outstanding profitability metrics with 56.4% operating margin and 50.3% net margin demonstrating operational efficiency
- Robust free cash flow generation of 396.7M with 46.6% FCF margin providing financial flexibility
- Strong absolute operating cash flow of 423.0M relative to capital expenditure needs
NNI Investment Risks to Consider
- Elevated leverage ratio of 2.11x Debt/Equity with 7.8B long-term debt against 3.7B equity raises financial risk concerns
- Thin interest coverage of 2.5x leaves limited cushion for rising rates or earnings volatility in the education loan servicing sector
- Moderate ROE of 11.6% and ROA of 3.0% suggest capital efficiency concerns despite high margins, potentially indicating asset-heavy operations
- Significant insider activity (9 Form 4 filings in 90 days) warrants scrutiny for potential concerns or strategic changes
Key Metrics to Watch
- Interest coverage ratio trend and debt refinancing conditions
- Free cash flow sustainability and capital allocation decisions
- Operating margin maintenance amid potential revenue normalization
- Return on equity improvement as business matures
- Debt/Equity ratio reduction and leverage management
NNI Financial Metrics
💡 AI Analyst Insight
The 46.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
NNI Profitability Ratios
NNI vs Default Sector
How NELNET INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NNI Overvalued or Undervalued?
Based on fundamental analysis, NELNET INC has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NNI Balance Sheet & Liquidity
NNI 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: NELNET INC's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $2.40 reflects profitable operations.
NNI Growth Metrics (YoY)
NNI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2017 | N/A | $43.5M | N/A |
| Q2 2017 | N/A | $22.5M | N/A |
| Q1 2017 | N/A | $47.1M | N/A |
| Q3 2016 | N/A | $48.5M | N/A |
| Q2 2016 | N/A | $22.5M | N/A |
| Q1 2016 | N/A | $47.1M | N/A |
| Q3 2015 | N/A | $48.5M | N/A |
| Q2 2015 | N/A | $69.3M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NNI Capital Allocation
NNI SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for NELNET INC (CIK: 0001258602)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NNI
What is the AI rating for NNI?
NELNET INC (NNI) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NNI's key strengths?
Claude: Exceptional revenue growth of 140.2% YoY indicating strong market demand and business expansion. Outstanding profitability metrics with 56.4% operating margin and 50.3% net margin demonstrating operational efficiency.
What are the risks of investing in NNI?
Claude: Elevated leverage ratio of 2.11x Debt/Equity with 7.8B long-term debt against 3.7B equity raises financial risk concerns. Thin interest coverage of 2.5x leaves limited cushion for rising rates or earnings volatility in the education loan servicing sector.
What is NNI's revenue and growth?
NELNET INC reported revenue of $851.5M.
Does NNI pay dividends?
NELNET INC pays dividends, with $43.0M distributed to shareholders in the trailing twelve months.
Where can I find NNI SEC filings?
Official SEC filings for NELNET INC (CIK: 0001258602) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NNI's EPS?
NELNET INC has a diluted EPS of $11.79.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NNI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NELNET INC has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NNI stock overvalued or undervalued?
Valuation metrics for NNI: ROE of 11.6% (sector avg: 15%), net margin of 50.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy NNI stock in 2026?
Our dual AI analysis gives NELNET INC a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NNI's free cash flow?
NELNET INC's operating cash flow is $423.0M, with capital expenditures of $26.2M. FCF margin is 46.6%.
How does NNI compare to other Default stocks?
Vs Default sector averages: Net margin 50.3% (avg: 12%), ROE 11.6% (avg: 15%), current ratio N/A (avg: 1.8).