Navient CorporationNAVI
NASDAQ • Financial Services
$8.06
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
-16.1% YoY
Gross Margin
18.8%
Health Score
3/10
D/E Ratio
19.05
Confidence
LOW
Business Snapshot
Navient Corporation is a financial services company primarily engaged in student loan servicing, asset recovery, and business processing solutions. It operates in the credit services industry, holding a significant but declining position as the largest federally contracted student loan servicer in the United States. With TTM revenue of $3.06 billion, the company is a mid-cap entity by revenue scale, though its market capitalisation is not available in the payload. A defining characteristic is its high leverage and dependence on interest rate spreads and government contracts, leaving it exposed to regulatory and refinancing risks. The business has been shrinking as it winds down its legacy federal loan portfolio.
Financial Health
Gross margin collapsed from 88.4% in the prior year to just 18.8%, signalling a severe deterioration in core profitability, while the net margin stands at -11.6%, indicating the company is operating at a loss after expenses. The balance sheet is highly distressed, with a debt/equity ratio of 19.05x — among the highest leverage levels in the financial sector — and a current ratio of 0.41x, meaning current liabilities far exceed liquid assets...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 19.05x is extreme for any sector, while the current ratio of 0.41x signals acute short-term liquidity risk.
- REVENUE DECELERATION — Revenue fell 16.1% year-over-year and a further 8.7% quarter-over-quarter, indicating the decline is steepening.
- EARNINGS QUALITY — Only 1 of the last 4 quarters beat analyst estimates, reflecting unpredictable earnings and weak guidance credibility.
- VALUATION DIVERGENCE — The FMP DCF of -$180.42 and the non-calculable Python DCF create a valuation vacuum; the negative DCF cannot be used as a credible anchor.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- 52-WEEK POSITION — At $8.06, the stock is near the bottom of its 52-week range ($7.80 – $16.07), reflecting persistent selling pressure and a 49.8% drop from the year's high.
- FCF / CASH BURN — Despite positive absolute FCF of $441M, the company is burning net income (-$60M) and generating cash only through debt or asset sales, a fragile position....