Nelnet Inc. Common Stock (NNI)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses that earn high returns and sell below intrinsic value. Nelnet is a mixed case. It services loans, provides education technology and payments, manages assets, and runs Nelnet Bank, with 5,744 employees. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $66.7 million and diluted EPS was $1.85. That is far below fiscal Q2 2025, the quarter ended 2025-06-30, when net income was $181.5 million and diluted EPS was $4.97. Full-year fiscal 2025, the year ended 2025-12-31, showed net income of $428.5 million and diluted EPS of $11.79, up from $184.0 million and $5.02 in fiscal 2024 and $89.8 million and $2.40 in fiscal 2023. Yet FairStock labels it a slow grower, with profit compounding about 4.0% a year over five years. The numbers do not reveal a wide moat; low returns on equity and capital suggest limited pricing power. FairStock shows ROE of 6.76% and ROCE of 1.72%. Debt-to-equity is 1.94, and its Altman Z-Score is 0.65, so leverage deserves respect. At the 2026-10-13 close of $126.93, the P/E is 15.16 and P/B is 1.20. The Graham Number is $140.87, a 9.90% margin of safety—thin, not compelling. Free cash flow is $364.0 million, an 8.0% FCF yield, and the Piotroski F-Score is 6/9. I see a fair-to-slightly-cheap price around a business with uneven profits and only middling returns. I would need steadier earnings and better returns on capital before calling it a classic value opportunity.

In plain English: Nelnet helps service student loans, provides school-related technology and payment services, manages assets, and runs a bank. The business is profitable, but profits have been uneven and returns are modest. At the recent price, the stock looks roughly fair to slightly cheap compared with its profits and net assets, though the company uses a lot of debt.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer