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1. Company Snapshot

1.a. Company Description

Nelnet, Inc.engages in loan servicing, communications, education technology, services, and payment processing businesses worldwide.The Loan Servicing and Systems segment provides loan conversion, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliation, and claim processing services.


This segment also provides student loan servicing software; business process outsourcing services specialized in contact center management, such as inbound calls, outreach campaigns and sales, and interacting with customers through multi-channels.The Education Technology, Services, and Payment Processing segment offers financial management services; school information system software; website design and cost effective admissions software; FACTS Giving, a donation platform; and customized professional development and coaching services, educational instruction services, and technology products that aid in teacher and student evaluations.It 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; faith community engagement, giving management, and learning management services and technologies; and an integrated commerce payment platform, financial management, and tuition payment plan services, as well as a school management platform that provides administrative, information management, financial management, and communication functions for K-12 schools.


The Communications segment provides fiber optic service to homes and businesses for internet, television, and telephone services.The Asset Generation and Management segment acquires, manages, and owns loan assets.The Nelnet Bank segment operates internet industrial banks.


The company was founded in 1978 and is headquartered in Lincoln, Nebraska.

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1.b. Last Insights on NNI

Nelnet, Inc.'s recent performance was driven by strong earnings growth, with GAAP net income increasing to $82.6 million, or $2.26 per share, in the first quarter of 2025, up from $73.4 million, or $1.98 per share, in the same period a year ago. The company's acquisition of Next Gen Web Solutions expanded its higher education footprint, providing a boost to its business services segment. Additionally, Nelnet's involvement in a 5.7-megawatt solar project with Toyota Boshoku America demonstrates its commitment to renewable energy and sustainability.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Nelnet, Inc. $NNI Shares Acquired by American Century Companies Inc.

Dec -03

Source: defenseworld.net

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Bandera Partners LLC Trims Stock Position in Nelnet, Inc. $NNI

Nov -25

Source: defenseworld.net

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Prediction: 2 Stocks That Will Be Worth More Than SoundHound AI 5 Years From Now

Nov -24

Source: fool.com

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Allworth Financial LP Boosts Holdings in Nelnet, Inc. $NNI

Nov -20

Source: defenseworld.net

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Nelnet Campus Commerce Processed Over $602 Million in Title IV Refunds, Improving Transparency for Students

Nov -13

Source: prnewswire.com

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Nelnet Reports Third Quarter 2025 Results

Nov -06

Source: prnewswire.com

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ADP, Snap-on Lead 14 Companies To Announce Annual Increases In First Half Of November

Nov -02

Source: seekingalpha.com

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Nelnet Campus Commerce Advances Project Horizon Following Successful Virtual Client Summit

Oct -23

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.19%)

6. Segments

Education Technology, Services and Payment Processing

Expected Growth: None%

None

Loan Servicing and Systems

Expected Growth: None%

None

Asset Generation and Management

Expected Growth: None%

None

Nelnet Bank

Expected Growth: None%

None

Nfs Other Operating Segments

Expected Growth: None%

None

Eliminations

Expected Growth: None%

None

Corporate and Other Activities

Expected Growth: None%

None

7. Detailed Products

Student Loan Servicing

Nelnet provides student loan servicing solutions to borrowers, lenders, and guaranty agencies, offering a range of services including payment processing, customer service, and default prevention.

Tuition Payment Plans

Nelnet offers tuition payment plans to educational institutions, allowing students and families to budget and pay for tuition and fees in monthly installments.

Education Loan Origination

Nelnet originates and services private education loans, providing financing options to students and families to cover education-related expenses.

K-12 Tuition Payment Processing

Nelnet provides tuition payment processing services to K-12 schools, allowing parents to make online payments and set up payment plans.

Campus Commerce

Nelnet offers a range of campus commerce solutions, including payment processing, e-commerce platforms, and campus card systems.

Alumni Engagement

Nelnet provides alumni engagement solutions to educational institutions, helping them to stay connected with their alumni and raise funds.

8. Nelnet, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Nelnet's services are specialized, but there are some substitutes available in the market, which may pose a moderate threat to the company.

Bargaining Power Of Customers

Nelnet's customers have limited bargaining power due to the company's diversified customer base and lack of concentration.

Bargaining Power Of Suppliers

Nelnet has a diversified supplier base, which reduces the bargaining power of individual suppliers, and the company is not heavily dependent on a single supplier.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the education loan servicing industry, including regulatory hurdles and the need for significant capital investment.

Intensity Of Rivalry

The education loan servicing industry is moderately competitive, with a few major players, but Nelnet's established position and diversified services help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 78.39%
Debt Cost 8.14%
Equity Weight 21.61%
Equity Cost 8.14%
WACC 8.14%
Leverage 362.68%

11. Quality Control: Nelnet, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
OneMain Holdings

A-Score: 6.7/10

Value: 5.4

Growth: 5.4

Quality: 5.2

Yield: 10.0

Momentum: 7.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
FirstCash

A-Score: 6.5/10

Value: 4.3

Growth: 7.6

Quality: 8.4

Yield: 2.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
SLM

A-Score: 6.2/10

Value: 7.0

Growth: 5.6

Quality: 6.8

Yield: 4.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Ally Financial

A-Score: 5.7/10

Value: 7.1

Growth: 5.2

Quality: 3.3

Yield: 6.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Nelnet

A-Score: 5.5/10

Value: 3.6

Growth: 5.8

Quality: 4.7

Yield: 2.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Credit Acceptance

A-Score: 4.8/10

Value: 5.3

Growth: 6.3

Quality: 5.6

Yield: 0.0

Momentum: 6.0

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

131.7$

Current Price

131.7$

Potential

-0.00%

Expected Cash-Flows