📊 NNI Key Takeaways
Is Nelnet Inc. (NNI) a Good Investment?
Nelnet demonstrates exceptional revenue growth (140% YoY) with strong cash flow generation ($61.6M FCF), but flat net income growth, critically weak interest coverage (0.4x), and severely depressed returns (1.9% ROE, 0.5% ROA) signal operational distress and debt servicing concerns despite healthy operating margins.
Nelnet’s fundamentals show strong profitability and cash generation, with exceptionally high operating and free cash flow margins supported by a solid equity base. However, leverage is elevated and interest coverage is thin, and the sharp revenue growth did not translate into net income growth, suggesting earnings volatility or one‑offs. Wait for clearer evidence of sustainable earnings expansion and improved coverage before getting more constructive.
Why Buy Nelnet Inc. Stock? NNI Key Strengths
- Exceptional revenue growth of 140% YoY demonstrates strong market demand
- Strong operating and net margins (35.8% and 33.7%) indicate pricing power
- Positive free cash flow of $61.6M with low capital intensity (CapEx only $11.6M)
- Robust free cash flow and high FCF margin
- Strong operating and net margins
- Solid equity base with mid‑teens ROE
NNI Stock Risks: Nelnet Inc. Investment Risks
- Critical interest coverage ratio of 0.4x suggests inability to cover debt obligations from operating income
- Net income flat YoY (0.0%) despite 140% revenue growth indicates profitability deterioration and cost control issues
- Abysmal returns on equity (1.9%) and assets (0.5%) despite 2.06x leverage indicate inefficient capital deployment
- High debt-to-equity ratio of 2.06x combined with weak interest coverage signals financial stress
- Elevated leverage (Debt/Equity 2.11x)
- Weak interest coverage (2.5x) limiting resilience
- Revenue surge not translating to EPS/net income growth
Key Metrics to Watch
- Interest coverage ratio trajectory and debt servicing capacity
- Return on equity and return on assets trends
- Net income growth acceleration to match revenue growth
- Operating cash flow sustainability given leverage profile
- Interest coverage trend
- Net income growth vs. revenue growth
Nelnet Inc. (NNI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 29.1% 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 Profit Margin, ROE & Profitability Analysis
NNI vs Finance Sector: How Nelnet Inc. Compares
How Nelnet Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Nelnet Inc. Stock Overvalued? NNI Valuation Analysis 2026
Based on fundamental analysis, Nelnet Inc. has mixed fundamental signals relative to the Finance 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.
Nelnet Inc. Balance Sheet: NNI Debt, Cash & Liquidity
NNI Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
NNI Quarterly Earnings & 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.
Nelnet Inc. Dividends, Buybacks & Capital Allocation
NNI SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 65% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NNI's key strengths?
Claude: Exceptional revenue growth of 140% YoY demonstrates strong market demand. Strong operating and net margins (35.8% and 33.7%) indicate pricing power. ChatGPT: Robust free cash flow and high FCF margin. Strong operating and net margins.
What are the risks of investing in NNI?
Claude: Critical interest coverage ratio of 0.4x suggests inability to cover debt obligations from operating income. Net income flat YoY (0.0%) despite 140% revenue growth indicates profitability deterioration and cost control issues. ChatGPT: Elevated leverage (Debt/Equity 2.11x). Weak interest coverage (2.5x) limiting resilience.
What is NNI's revenue and growth?
Nelnet Inc. reported revenue of $211.2M.
Does NNI pay dividends?
Nelnet Inc. pays dividends, with $11.8M 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 $1.97.
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 May 2026, Nelnet Inc. has a HOLD rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NNI stock overvalued or undervalued?
Valuation metrics for NNI: ROE of 1.9% (sector avg: 12%), net margin of 33.7% (sector avg: 25%). 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 HOLD 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 $73.1M, with capital expenditures of $11.6M. FCF margin is 29.1%.
How does NNI compare to other Finance stocks?
Vs Finance sector averages: Net margin 33.7% (avg: 25%), ROE 1.9% (avg: 12%), current ratio N/A (avg: 1.2).
Is Nelnet Inc. carrying too much debt?
NNI has a debt-to-equity ratio of 2.06x, which is above the Finance sector average of 2x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.