Nelnet, Inc. (NNI) AI Stock Analysis

Nelnet, Inc. is a Lincoln, Nebraska-based corporation operating across loan servicing, education technology, communications, and asset generation and management. Its Loan Servicing and Systems division provides loan application processing, borrower updates, payment processing, funds management reconciliation, and business process outsourcing. The Education Technology, Services, and Payment Processing unit offers financial management services, school information system software, tuition payment plans, and campus payment experiences. Nelnet's Communications business provides fiber optic internet, television, and telephone services to residential and commercial properties.

Nelnet's revenue expanded from $1.42B in FY2021 to $2.26B in FY2025, generating a 5-year revenue CAGR of 10.5%. Annual net income peaked in FY2025 at $428.5M, supported by an operating margin of 50.6% and diluted EPS of $11.95. This marked a rebound from FY2023, when net income dropped to $89.8M and operating margin fell to 3.8%. Over the trailing twelve months, revenue totaled $1.49B with a profit margin of 20.3%. For the quarter ended June 30, 2026, quarterly revenue fell 30.5% year-over-year, while quarterly earnings declined 62.8%.

As of June 30, 2026, Nelnet held $1.56B in cash and short-term investments against $7.04B in total debt, resulting in net debt of $5.49B. Shareholders' equity stood at $3.77B, representing a debt-to-equity ratio of 1.87 and a current ratio of 0.74. In FY2025, the company generated $423.0M in operating cash flow and $396.7M in free cash flow. Capital expenditures were $26.2M, while capital return to shareholders included $69.3M in share buybacks and $43.0M in dividends paid.

At a share price of $127.42, Nelnet carries a market capitalization of $4.56B and an enterprise value of $11.29B. The stock trades at a trailing P/E of 15.2x and a forward P/E of 13.1x, both higher than the US-listed Financial Services median of 12.1x trailing and 10.8x forward. Its price-to-sales ratio of 3.1x sits slightly below the peer median of 3.2x. Over the past year, NNI generated a 0.3% return, lagging behind the S&P 500 return of 16.8%.

Nelnet pays a forward annual dividend of $1.32 per share, representing a 1.04% dividend yield. The company carries a modest payout ratio of 16.1% and has paid dividends for 20 consecutive years. Its dividend has grown at an annualized rate of 7.7% over the past 5 years, with the latest ex-dividend date on September 1, 2026.

Wall Street coverage includes 1 analyst with a Hold rating and zero Buy or Sell ratings. The mean price target is $125.00, representing a 1.9% discount to the last close of $127.42. For the fiscal year ending December 31, 2026, analysts expect EPS of $7.42 on revenue of $1.67B. For the subsequent year, consensus calls for EPS to rise 14.6% to $8.50 on $1.77B in revenue. Nelnet beat EPS estimates once over the trailing four quarters and reports earnings next on November 5, 2026.

This page is an AI-written research summary of Nelnet, Inc. (NNI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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