In this article, we delve into the world of Nelnet, an education-focused finance and services company that offers a range of products and services catering to the education sector. Despite appearing highly leveraged and in decline, Nelnet presents an intriguing investment opportunity, offering potential upside with limited downside risk. With its long history, diversified business segments, and a solid track record of capital allocation, Nelnet has the potential for hidden value that may be worth exploring.
Nelnet’s stock price as of June 5, 2017, stood at 40.00, with a 52-week range of 55.05 to 31.49. The company had a market capitalization of 1.8 billion, total debt of 23.6 billion, and a book value per share of 48.94. Its trailing twelve months (TTM) revenue amounted to 830.6 million, with an earnings per share (EPS) of 6.10. While the business is currently in runoff mode, there are other segments that offer potential for future growth and value creation.
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