NNI : NYSE : Financial
$39.67 | %
Today's Range: 39.42 - 40.04
Avg. Daily Volume: 78,000
07/22/16 - 4:02 PM ET

Financial Analysis


NELNET INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line.

During the same period, stockholders' equity ("net worth") has increased by 5.44% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)302.57291.77
EBITDA ($mil)196.2180.21
EBIT ($mil)188.56174.54
Net Income ($mil)47.9664.77


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)1076.151035.18
Total Assets ($mil)29589.3529955.79
Total Debt ($mil)27349.8927815.32
Equity ($mil)1878.251781.22


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin64.8461.76
EBITDA Margin64.8461.76
Operating Margin62.3259.82
Sales Turnover0.040.04
Return on Assets0.840.99
Return on Equity13.3716.76
Debt Q1 FY16 Q1 FY15
Current Ratio0.00.0
Debt/Capital0.940.94
Interest Expense90.4171.55
Interest Coverage2.092.44


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)42.4946.2
Div / share0.120.1
EPS1.111.4
Book value / share44.2138.55
Institutional Own % n/a n/a
Avg Daily Volume78323.0143920.0

Valuation


SELL. This stock's P/E ratio indicates a discount compared to an average of 15.45 for the Consumer Finance industry and a significant discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 0.89 indicates a significant discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 1.85. 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 7.05 Peers 15.45   NNI 4.61 Peers 4.98

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

NNI is trading at a significant discount to its peers.

 

Average. 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 valuation on par 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 7.59 Peers 10.55   NNI NM Peers 1.21

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 significant 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 0.89 Peers 1.85   NNI -13.05 Peers -86.62

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.

 

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

NNI is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NNI 1.39 Peers 1.68   NNI 2.02 Peers 5.20

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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