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NelnetNNI +0.40%66 5-Year Yield-on-Cost % is 1.41 as of Jul. 27, 2026, which is 11% below its 10-year median of 1.58. GuruFocus rates NNI with a GF Score™ of 66/100 and a GF Value™ of $149.29 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 212 Credit Services companies, Nelnet ranks worse than 75.94% on this metric.
Nelnet's yield on cost for the quarter that ended in Mar. 2026 was 1.41.
The historical rank and industry rank for Nelnet's 5-Year Yield-on-Cost % or its related term are showing as below:
NNI'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.19 Med: 1.58 Max: 2.77
Current: 1.41
During the past 13 years, Nelnet's highest Yield on Cost was 2.77. The lowest was 1.19. And the median was 1.58.
NNI's 5-Year Yield-on-Cost % is ranked worse than 75.94% of 212
companies
in the Credit Services industry
Industry Median: 4.505
vs NNI: 1.41
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Nelnet 5-Year Yield-on-Cost % Related Terms
NNI vs SLM, SEZL, BFH: 5-Year Yield-on-Cost % Comparison
For the Credit Services subindustry, Nelnet's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nelnet 5-Year Yield-on-Cost % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Nelnet's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Nelnet's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Nelnet is calculated as
Nelnet (NNI) has a 5-Year Yield-on-Cost % of 1.41 as of Jul. 27, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Nelnet and its competitors. This is 11% below median its historical median of 1.58. Over the past decade, Nelnet's 5-Year Yield-on-Cost % has ranged from 1.19 to 2.77. According to the industry distribution chart, Nelnet ranks #161 out of 212 companies in the Credit Services industry, placing it in the top 75.9%.
Is Nelnet's 5-Year Yield-on-Cost % too high?
Nelnet's current 5-Year Yield-on-Cost % of 1.41 is 11% below median its 10-year median of 1.58. Over the past 10 years, this metric has ranged from a low of 1.19 to a high of 2.77. The Credit Services industry median 5-Year Yield-on-Cost % is 4.51. Nelnet's value of 1.41 is 68.7% below this industry median. Based on the distribution chart, Nelnet ranks #161 out of 212 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Nelnet has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nelnet's 5-Year Yield-on-Cost % compare to SLM and SEZL?
According to the Credit Services industry distribution chart, Nelnet ranks #161 out of 212 companies for 5-Year Yield-on-Cost %. This places Nelnet in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.51. Nelnet's value of 1.41 is 68.7% below this benchmark. Historically, Nelnet's own 5-Year Yield-on-Cost % has ranged from 1.19 to 2.77 over the past decade. While the company's 10-year median is 1.58 vs. the industry median of 4.51, Nelnet has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Credit Services company?
The median 5-Year Yield-on-Cost % among Credit Services companies is 4.51, based on 212 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nelnet's current 5-Year Yield-on-Cost % of 1.41 is 68.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Nelnet and its competitors. For the Credit Services industry, the median 5-Year Yield-on-Cost % is 4.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nelnet's current 5-Year Yield-on-Cost % is 1.41, which is 11% below median its own 10-year median of 1.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nelnet stock overvalued right now?
Based on GuruFocus' analysis, Nelnet (NNI) is currently considered Modestly Undervalued. The stock's GF Value™ is $149.29, compared to a current price of $133.90 — trading 10.3% below its estimated fair value. The current 5-Year Yield-on-Cost % is 1.41, which is 11% below median its 10-year median of 1.58 and 68.7% below the Credit Services industry median of 4.51. Nelnet's overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Nelnet (NNI), the current 5-Year Yield-on-Cost % is 1.41 as of Jul. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nelnet (NNI) Overvalued in 2026?
Based on GuruFocus' analysis, Nelnet stock appears to be undervalued.
The current stock price of $133.90 is trading 10.3% below its estimated GF Value™ of $149.29.
GuruFocus considers Nelnet to be Modestly Undervalued.
Key valuation signals for NNI:
5-Year Yield-on-Cost %: 1.41 (11% below median its 10-year median of 1.58)
GF Value™: $149.29 vs. price of $133.90 (10.3% below fair value)
Industry Position: 68.7% below the Credit Services median (#161 of 212)
No single metric tells the full story. See the NNI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nelnet Inc is a United States based company engaged in these four reportable segments; Loan Servicing and Systems, which focuses on student and consumer loan origination services and servicing, loan origination and servicing-related technology solutions, and outsourcing business services; Education Technology Services and Payments segment provides education services, payment technology, and community management solutions for K-12 schools, institutions, churches, and businesses; Asset Generation and Management segment includes the acquisition and management of student and other loan assets; and Nelnet Bank focuses on the private education and unsecured consumer loan markets. Maximum revenue for the company is generated from its Asset Generation and Management.
66GF Score
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