NNI : NYSE : Financial
$38.65 -0.65 | -1.65%
Today's Range: 38.64 - 39.12
Avg. Daily Volume: 65,700
09/26/16 - 4:02 PM ET

Financial Analysis


NELNET INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has increased by 5.10% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)285.38293.91
EBITDA ($mil)184.15182.43
EBIT ($mil)175.97175.93
Net Income ($mil)26.1570.91


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1167.261168.11
Total Assets ($mil)28715.830246.82
Total Debt ($mil)26399.6928070.42
Equity ($mil)1897.31805.19


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin64.5362.07
EBITDA Margin64.5262.07
Operating Margin61.6659.86
Sales Turnover0.040.04
Return on Assets0.710.97
Return on Equity10.8716.31
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.930.94
Interest Expense94.0572.63
Interest Coverage1.872.42


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)42.545.21
Div / share0.120.1
EPS0.611.54
Book value / share44.6439.93
Institutional Own % n/a n/a
Avg Daily Volume68147.094020.0

Valuation


SELL. This stock's P/E ratio indicates a discount compared to an average of 11.00 for the Consumer Finance industry and a significant discount compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 0.88 indicates a significant discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 1.88. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, NELNET INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NNI 8.43 Peers 11.00   NNI 4.48 Peers 5.33

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

NNI is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

NNI is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NNI 8.16 Peers 10.62   NNI NM Peers 2.12

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

NNI is trading at a discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

NNI's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NNI 0.88 Peers 1.88   NNI -26.69 Peers -15.38

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

NNI is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, NNI is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NNI 1.40 Peers 1.70   NNI 1.89 Peers 5.98

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

NNI is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

NNI significantly trails its peers on the basis of sales growth

 

 

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