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NNI 
Nelnet Inc (NNI)
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Upturn Advisory Summary
02/25/2026: NNI (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
1 Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $140
1 Year Target Price $140
| 0 | Strong Buy |
| 0 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 4.73B USD | Price to earnings Ratio 10.98 | 1Y Target Price 140 |
Price to earnings Ratio 10.98 | 1Y Target Price 140 | ||
Volume (30-day avg) 1 | Beta 0.82 | 52 Weeks Range 97.43 - 142.87 | Updated Date 02/25/2026 |
52 Weeks Range 97.43 - 142.87 | Updated Date 02/25/2026 | ||
Dividends yield (FY) 0.89% | Basic EPS (TTM) 11.91 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2026-03-03 | When - | Estimate 1.21 | Actual - |
Profitability
Profit Margin 25.45% | Operating Margin (TTM) 34.83% |
Management Effectiveness
Return on Assets (TTM) 3.03% | Return on Equity (TTM) 12.45% |
Valuation
Trailing PE 10.98 | Forward PE 15.75 | Enterprise Value 12239898624 | Price to Sales(TTM) 2.77 |
Enterprise Value 12239898624 | Price to Sales(TTM) 2.77 | ||
Enterprise Value to Revenue 9.14 | Enterprise Value to EBITDA - | Shares Outstanding 25316448 | Shares Floating 14579146 |
Shares Outstanding 25316448 | Shares Floating 14579146 | ||
Percent Insiders 37.47 | Percent Institutions 48.31 |
Upturn AI SWOT
Nelnet Inc
Company Overview
History and Background
Nelnet Inc. was founded in 1996 as Nelnet, Inc., a student loan provider. It has since evolved into a diversified financial services company. Key milestones include its IPO in 2003, expansion into loan servicing, and diversification into real estate and payment processing services. The company has grown through organic expansion and strategic acquisitions.
Core Business Areas
- Loan Servicing and Asset Management: Nelnet is a leading federal student loan servicer, managing a vast portfolio of student loans for the Department of Education. This segment also includes private loan servicing and asset management services for various financial institutions. They handle billing, repayment plans, customer service, and default aversion.
- Education Technology and Services: This segment offers a range of software and services for educational institutions, including enrollment management solutions, financial aid management, student information systems, and alumni engagement platforms. Brands like FACTS Education and Campus Suite fall under this umbrella.
- Payments and Technology Solutions: Nelnet provides payment processing services for businesses and educational institutions, including tuition payment plans, online payment portals, and payment gateway services. This segment aims to streamline financial transactions for its clients.
- Real Estate Services: Through its subsidiary, Nelnet Real Estate, the company offers mortgage origination and servicing, as well as title and escrow services, primarily in select geographic markets.
Leadership and Structure
Nelnet Inc. is led by a seasoned management team. Key executives include Jeffrey R. Noordhoek (CEO), John P. Schwall (CFO), and Karen L. Sinsheimer (Chief Legal Officer). The company operates through various subsidiaries and divisions, reflecting its diversified business model.
Top Products and Market Share
Key Offerings
- Federal Student Loan Servicing: Nelnet is one of the largest federal student loan servicers in the United States. It handles millions of student loans, providing repayment and customer support services. Competitors include other large loan servicers contracted by the Department of Education, such as MOHELA and Aidvantage. Specific market share figures for federal loan servicing are often tied to government contracts and can fluctuate.
- Tuition Payment Plans (FACTS): Nelnet's FACTS brand offers flexible tuition payment plans for K-12 schools and higher education institutions, allowing families to spread educational costs over time. This is a significant revenue driver and user-base builder. Competitors include other payment plan providers and directly integrated payment systems within educational software.
- Student Information Systems (SIS): Through brands like Campus Suite, Nelnet provides comprehensive student information systems for educational institutions, managing student data, academic records, and communication. Competitors include major SIS providers like PowerSchool and Skyward.
- Mortgage Origination and Servicing: Nelnet offers residential mortgage services, including loan origination and ongoing servicing. This segment competes with a wide array of national and regional mortgage lenders and servicers.
Market Dynamics
Industry Overview
Nelnet operates within the education finance, fintech, and real estate services industries. The education finance sector is heavily influenced by government policy, interest rates, and student enrollment trends. The fintech sector is characterized by rapid innovation and increasing competition. The mortgage industry is sensitive to interest rate environments and housing market conditions.
Positioning
Nelnet's strength lies in its significant role as a federal student loan servicer, providing a stable, government-backed revenue stream. Its diversified business model, particularly its strong presence in educational technology and payment solutions, offers resilience and growth opportunities. The company leverages its existing customer relationships and technological expertise to expand its offerings. Its competitive advantages include long-standing relationships with educational institutions and the federal government, a robust servicing platform, and a diversified revenue base.
Total Addressable Market (TAM)
The TAM for Nelnet is multifaceted, spanning the entire student loan market (origination, servicing, and management), the broader K-12 and higher education technology market, the payment processing market, and the mortgage market. The US student loan market alone is over $1.7 trillion. The K-12 and higher education technology market is also substantial, with significant spending on administrative and learning platforms. Nelnet is well-positioned within its core segments, particularly federal loan servicing, and is expanding its reach in educational technology and payment solutions. Its diversified approach allows it to capture a share of these large and evolving markets.
Upturn SWOT Analysis
Strengths
- Dominant position in federal student loan servicing.
- Diversified business model with multiple revenue streams.
- Strong relationships with educational institutions.
- Established technology platforms and infrastructure.
- Experienced management team.
Weaknesses
- Reliance on government contracts for a significant portion of revenue.
- Potential for regulatory changes impacting the student loan industry.
- Competition in the fintech and education technology sectors is intense.
- Capital intensive nature of some business lines.
Opportunities
- Expansion of BFS (Business & Financial Services) offerings.
- Growth in the private student loan market.
- Increased demand for digital payment solutions in education.
- Acquisitions to further diversify and expand service offerings.
- Leveraging data analytics for enhanced customer service and product development.
Threats
- Interest rate fluctuations affecting loan profitability.
- Changes in federal student loan policy (e.g., forgiveness programs, direct lending expansion).
- Economic downturns impacting student enrollment and loan repayment.
- Cybersecurity risks and data breaches.
- Intensifying competition from new and established players.
Competitors and Market Share
Key Competitors
- MOHELA (US Stock Symbol: N/A - State-created entity)
- Aidvantage (US Stock Symbol: N/A - Serves as a brand of Maximus Federal Services, Inc.)
- Federal Student Aid (FSA) - Directly managed by the Department of Education
- PowerSchool Holdings Inc. (NYSE: PWSC)
- Blackbaud Inc. (NASDAQ: BLKB)
Competitive Landscape
Nelnet holds a significant share of the federal student loan servicing market, competing primarily with other government-contracted servicers and the direct administration by FSA. In education technology, it faces competition from established players like PowerSchool and Blackbaud. Its advantage lies in its established infrastructure, government relationships, and diversified services. Its disadvantages include the heavy reliance on government contracts which are subject to renewal and competitive bidding, and the intense competition in rapidly evolving technology sectors.
Major Acquisitions
Tuition Management Systems (TMS)
- Year: 2013
- Acquisition Price (USD millions):
- Strategic Rationale: To expand Nelnet's presence in tuition management and payment processing services, integrating TMS's capabilities into its FACTS brand and enhancing its offerings to educational institutions.
Campus Suite
- Year: 2020
- Acquisition Price (USD millions):
- Strategic Rationale: To strengthen Nelnet's education technology segment by acquiring a leading provider of K-12 school websites, communication platforms, and content management systems, enhancing its suite of services for educational clients.
Growth Trajectory and Initiatives
Historical Growth: Nelnet has demonstrated consistent historical growth, driven by organic expansion in its core servicing business and strategic acquisitions that have broadened its service offerings in education technology, payments, and real estate.
Future Projections: Analyst projections for Nelnet typically anticipate continued growth in its loan servicing and education technology segments. Expansion into new payment solutions and potential further strategic acquisitions are also key drivers for future growth. Specific analyst consensus figures are proprietary and would require access to financial research platforms.
Recent Initiatives: Recent initiatives include ongoing investments in its technology platforms to enhance efficiency and customer experience in loan servicing and education solutions. The company has also been active in exploring and executing strategic partnerships and acquisitions to bolster its market position in key growth areas, such as payment processing and specialized educational software.
Summary
Nelnet Inc. is a diversified financial services company with a strong foundation in federal student loan servicing. Its diversified business model, encompassing education technology and payment solutions, provides resilience and multiple avenues for growth. While its reliance on government contracts presents some regulatory risk, its established infrastructure and strategic acquisitions position it well to capitalize on evolving market demands in education and finance. Continued investment in technology and potential further diversification will be key to its ongoing success.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Nelnet Inc. Investor Relations
- SEC Filings (10-K, 10-Q)
- Industry reports on education finance and fintech
- Financial news outlets
Disclaimers:
This analysis is based on publicly available information as of the last update. Financial data and market share figures are estimates and subject to change. This information is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence.
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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