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Navient (NAVI): Assessing Valuation After Recent Share Price Stabilization and Revenue Growth Signs

Simply Wall St · 1d ago

Navient (NAVI) has been treading water lately, with the stock flat over the past day but up about 5% this month after a weaker past 3 months and year. Investors are weighing improving revenue against ongoing losses.

See our latest analysis for Navient.

That recent 5% one month share price return comes after a softer stretch, leaving the stock down on a year to date basis while the one year total shareholder return remains negative, which suggests any momentum is still rebuilding rather than fully established.

If Navient’s turnaround story has you reassessing opportunities in financials, it might be a good moment to broaden your search and explore fast growing stocks with high insider ownership.

With shares still below last year’s levels but revenue back in growth mode, the key question now is whether Navient’s subdued valuation hides real upside or whether the market already reflects its future recovery prospects.

Most Popular Narrative: 2.2% Undervalued

With Navient last closing at $12.60 against a narrative fair value of $12.89, the current gap is slim but still leans to upside.

Meaningful operating expense reductions tied to divestitures and ongoing simplification initiatives are on track, with the company reiterating an ambitious $400 million expense reduction target. Continued progress here should directly contribute to higher net margins and greater earnings leverage as volume scales. Accelerating digitization, direct to consumer channels, and proprietary borrower engagement technology place Navient in a strong position to capture market share among digitally savvy graduate borrowers, improve underwriting outcomes, and lower delinquency rates over time, supporting both revenue growth and margin expansion.

Read the complete narrative.

Curious how aggressive margin expansion, rapid earnings growth, and a surprisingly low future profit multiple can still point to upside? The narrative’s math might surprise you.

Result: Fair Value of $12.89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, elevated delinquencies and lingering regulatory uncertainty around student loans could quickly undermine those optimistic margin and earnings assumptions.

Find out about the key risks to this Navient narrative.

Build Your Own Navient Narrative

If you see the story differently or want to test your own assumptions against the numbers, you can build a custom narrative in just a few minutes: Do it your way.

A great starting point for your Navient research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.