Stock fact sheet · data as of
Nelnet, Inc. (NNI): fair value, margin of safety and Wheel Score
Ticker symbol NNI · Financial Services · Financial - Credit Services · United States · Blend
Is NNI undervalued?
Nelnet, Inc. (NNI) closed at 127.58 on 5 Nov 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 171.16, so the price sits 25% below it. 5 of the 9 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
There is a wide gap between DDM (19.42) and DCF (371.09). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for NNI, so the nightly engine files it under Blend (value score 57, growth score 45, out of 100).
Nine valuation models for NNI
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 371.09 | +191% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 140.51 | +10% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 309.94 | +143% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 122.85 | -4% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 23.98 | -81% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 266.42 | +109% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 193.01 | +51% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 19.42 | -85% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 93.19 | -27% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -242.42 | -290% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Nelnet, Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. On durability NNI scores 6.8/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are thin or negative - ROIC 3.7%, ROE 11.6%, ROA 3.0% - with debt at 2.11 times equity and a free-cash-flow yield of 8.0%. Debt of 2.11 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 1.03% with a payout ratio of 15% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Loan Servicing And Systems Revenue 32%, Education Technology Services And Payme… 29%, Education Technology And Services 10% (quarter Q2 FY2026).
Institutional ownership scores 4/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 15 Sep 2026.
| Piotroski F-score | 8 / 9 | ROIC | 3.7% |
|---|---|---|---|
| GLS Moat | 6.8 / 10 | ROE | 11.6% |
| Debt / equity | 2.11 | ROA | 3.0% |
| Free-cash-flow yield | 8.0% | Payout ratio | 15% |
| Institutions | 4 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 42: Weak
With a Wheel Score of 42 Nelnet, Inc. sits in the Weak band. It fails filter 1, options that actually trade - options too quiet (89 open interest, 83 a day); and filter 6, no serious red flags - Red Flags score 50 (under 60); Red Flags (weak) is its weakest part.
Implied volatility is 31% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. Chain open interest is thin - 89 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 171k shares a day on a market cap of $4.6B, with a beta of 0.78 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (89 open interest, 83 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Fails | Red Flags score 50 (under 60) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 25% below fair value | |
| Premium | Good | implied volatility 31% | |
| Moat | Good | moat 6.8/10 | |
| Health | Strong | Piotroski 8/9 | |
| Red Flags | Weak | Red Flags score 50/100 | |
| Option trading | Weak | 83 contracts a day, 89 open interest | |
| Stability | Good | beta 0.78, $4.6B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Nelnet, Inc. reports earnings on 5 Nov 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Financial - Credit Services
The 12 companies below are the closest to Nelnet, Inc. by market cap within the Financial - Credit Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SEZL Sezzle Inc. | 136.69 | 219.84 | +38% | 41Weak | $4.6B |
| ENVA Enova International, Inc. | 181.18 | 713.58 | +75% | 79Good | $4.4B |
| JSM Navient Corporation SR NT 6% 121543 | 15.59 | 45.78 | +66% | 29No options | $4.3B |
| CACC Credit Acceptance Corporation | 498.68 | 965.03 | +48% | 50Fair | $5.1B |
| BFH Bread Financial Holdings, Inc. | 104.83 | 428.64 | +76% | 85Prime | $4.0B |
| KLAR Klarna Group plc | 13.89 | 8.37 | -66% | 31Weak | $5.2B |
| SLM SLM Corporation | 18.68 | 83.62 | +78% | 80Good | $3.5B |
| SLMBP SLM Corporation | 70.99 | 236.36 | +70% | 38No options | $6.4B |
| OMF OneMain Holdings, Inc. | 57.97 | 207.52 | +72% | 82Good | $6.6B |
| LU Lufax Holding Ltd | 8.51 | 43.72 | +81% | 39Weak | $7.4B |
| FCFS FirstCash Holdings, Inc | 193.34 | 232.88 | +17% | 77Good | $8.3B |
| UPST Upstart Holdings, Inc. | 23.38 | 22.86 | -2% | 29Weak | $2.3B |
⚖ Compare NNI with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about NNI
Is NNI undervalued right now?
By the GLS models, moderately: at 127.58 the stock trades 25% below the average fair value of 171.16 (data as of 5 Nov 2026).
What is the Wheel Score of NNI and what does it mean?
NNI scores 42 out of 100 (Weak) - it fails Wheel Trade Filters 1, 6. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for NNI?
171.16 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Nelnet, Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (after the close), 0 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does NNI have listed options, and how liquid are they?
Yes. The nightly snapshot found 80 listed contracts with 89 open interest across all expiries and implied volatility of 31% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.