Logo image of SLM

SLM CORP (SLM) Stock Fundamental Analysis

NASDAQ:SLM - Nasdaq - US78442P1066 - Common Stock - Currency: USD

33.8  +0.44 (+1.32%)

After market: 33.8 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SLM. SLM was compared to 52 industry peers in the Consumer Finance industry. Both the profitability and financial health of SLM have multiple concerns. SLM is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

3

1. Profitability

1.1 Basic Checks

SLM had positive earnings in the past year.
SLM had a negative operating cash flow in the past year.
In the past 5 years SLM has always been profitable.
SLM had negative operating cash flow in 4 of the past 5 years.
SLM Yearly Net Income VS EBIT VS OCF VS FCFSLM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

1.2 Ratios

The Return On Assets of SLM (2.09%) is comparable to the rest of the industry.
SLM's Return On Equity of 25.21% is amongst the best of the industry. SLM outperforms 86.54% of its industry peers.
Industry RankSector Rank
ROA 2.09%
ROE 25.21%
ROIC N/A
ROA(3y)1.83%
ROA(5y)2.46%
ROE(3y)27.97%
ROE(5y)34.33%
ROIC(3y)N/A
ROIC(5y)N/A
SLM Yearly ROA, ROE, ROICSLM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

SLM has a better Profit Margin (32.39%) than 94.23% of its industry peers.
SLM's Profit Margin has been stable in the last couple of years.
SLM does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 32.39%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-17.59%
PM growth 5Y-1.01%
GM growth 3YN/A
GM growth 5YN/A
SLM Yearly Profit, Operating, Gross MarginsSLM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

More info and screens

1

2. Health

2.1 Basic Checks

SLM does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for SLM has been reduced compared to 1 year ago.
Compared to 5 years ago, SLM has less shares outstanding
Compared to 1 year ago, SLM has a worse debt to assets ratio.
SLM Yearly Shares OutstandingSLM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
SLM Yearly Total Debt VS Total AssetsSLM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

A Debt/Equity ratio of 2.56 is on the high side and indicates that SLM has dependencies on debt financing.
The Debt to Equity ratio of SLM (2.56) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 2.56
Debt/FCF N/A
Altman-Z N/A
ROIC/WACCN/A
WACC12.51%
SLM Yearly LT Debt VS Equity VS FCFSLM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
SLM Yearly Current Assets VS Current LiabilitesSLM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2019 2022 2023 2024 1B 2B 3B 4B

More info and screens

4

3. Growth

3.1 Past

The earnings per share for SLM have decreased strongly by -17.99% in the last year.
Measured over the past years, SLM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.67% on average per year.
The Revenue has decreased by -3.85% in the past year.
Measured over the past years, SLM shows a small growth in Revenue. The Revenue has been growing by 2.03% on average per year.
EPS 1Y (TTM)-17.99%
EPS 3Y-8.94%
EPS 5Y15.67%
EPS Q2Q%10.24%
Revenue 1Y (TTM)-3.85%
Revenue growth 3Y-3.02%
Revenue growth 5Y2.03%
Sales Q2Q%-3.11%

3.2 Future

Based on estimates for the next years, SLM will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.50% on average per year.
SLM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.59% yearly.
EPS Next Y18.4%
EPS Next 2Y14.89%
EPS Next 3Y13.5%
EPS Next 5YN/A
Revenue Next Year2.92%
Revenue Next 2Y6.21%
Revenue Next 3Y6.59%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
SLM Yearly Revenue VS EstimatesSLM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B
SLM Yearly EPS VS EstimatesSLM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

More info and screens

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 12.16, which indicates a correct valuation of SLM.
SLM's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.28, SLM is valued rather cheaply.
A Price/Forward Earnings ratio of 9.66 indicates a reasonable valuation of SLM.
The rest of the industry has a similar Price/Forward Earnings ratio as SLM.
SLM is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.16
Fwd PE 9.66
SLM Price Earnings VS Forward Price EarningsSLM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
SLM Per share dataSLM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

SLM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SLM's earnings are expected to grow with 13.50% in the coming years.
PEG (NY)0.66
PEG (5Y)0.78
EPS Next 2Y14.89%
EPS Next 3Y13.5%

More info and screens

5

5. Dividend

5.1 Amount

SLM has a Yearly Dividend Yield of 1.58%. Purely for dividend investing, there may be better candidates out there.
SLM's Dividend Yield is a higher than the industry average which is at 3.66.
Compared to the average S&P500 Dividend Yield of 2.42, SLM is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.58%

5.2 History

On average, the dividend of SLM grows each year by 28.01%, which is quite nice.
SLM has been paying a dividend for at least 10 years, so it has a reliable track record.
SLM has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)28.01%
Div Incr Years1
Div Non Decr Years5
SLM Yearly Dividends per shareSLM Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4

5.3 Sustainability

19.82% of the earnings are spent on dividend by SLM. This is a low number and sustainable payout ratio.
SLM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.82%
EPS Next 2Y14.89%
EPS Next 3Y13.5%
SLM Yearly Income VS Free CF VS DividendSLM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B
SLM Dividend Payout.SLM Dividend Payout, showing the Payout Ratio.SLM Dividend Payout.PayoutRetained Earnings

More info and screens

SLM CORP

NASDAQ:SLM (7/2/2025, 8:00:02 PM)

After market: 33.8 0 (0%)

33.8

+0.44 (+1.32%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)04-24 2025-04-24/amc
Earnings (Next)07-23 2025-07-23/amc
Inst Owners103.83%
Inst Owner Change-2.82%
Ins Owners0.5%
Ins Owner Change-0.06%
Market Cap7.09B
Analysts81.33
Price Target36.01 (6.54%)
Short Float %3.3%
Short Ratio3.23
Dividend
Industry RankSector Rank
Dividend Yield 1.58%
Yearly Dividend0.55
Dividend Growth(5Y)28.01%
DP19.82%
Div Incr Years1
Div Non Decr Years5
Ex-Date06-05 2025-06-05 (0.13)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.15%
Min EPS beat(2)-10.52%
Max EPS beat(2)16.81%
EPS beat(4)2
Avg EPS beat(4)-114.8%
Min EPS beat(4)-496.31%
Max EPS beat(4)30.8%
EPS beat(8)4
Avg EPS beat(8)-63.99%
EPS beat(12)5
Avg EPS beat(12)-57.72%
EPS beat(16)8
Avg EPS beat(16)-42.9%
Revenue beat(2)1
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-4.11%
Max Revenue beat(2)2.71%
Revenue beat(4)2
Avg Revenue beat(4)-1.53%
Min Revenue beat(4)-6.28%
Max Revenue beat(4)2.71%
Revenue beat(8)6
Avg Revenue beat(8)0.82%
Revenue beat(12)9
Avg Revenue beat(12)9.17%
Revenue beat(16)13
Avg Revenue beat(16)11.62%
PT rev (1m)5.69%
PT rev (3m)3.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)0.03%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.96%
Valuation
Industry RankSector Rank
PE 12.16
Fwd PE 9.66
P/S 3.8
P/FCF N/A
P/OCF N/A
P/B 2.95
P/tB 3.03
EV/EBITDA N/A
EPS(TTM)2.78
EY8.22%
EPS(NY)3.5
Fwd EY10.35%
FCF(TTM)-1.9
FCFYN/A
OCF(TTM)-1.9
OCFYN/A
SpS8.91
BVpS11.44
TBVpS11.14
PEG (NY)0.66
PEG (5Y)0.78
Profitability
Industry RankSector Rank
ROA 2.09%
ROE 25.21%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 32.39%
GM N/A
FCFM N/A
ROA(3y)1.83%
ROA(5y)2.46%
ROE(3y)27.97%
ROE(5y)34.33%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-17.59%
PM growth 5Y-1.01%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 2.56
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score3
WACC12.51%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.99%
EPS 3Y-8.94%
EPS 5Y15.67%
EPS Q2Q%10.24%
EPS Next Y18.4%
EPS Next 2Y14.89%
EPS Next 3Y13.5%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.85%
Revenue growth 3Y-3.02%
Revenue growth 5Y2.03%
Sales Q2Q%-3.11%
Revenue Next Year2.92%
Revenue Next 2Y6.21%
Revenue Next 3Y6.59%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-9.2%
EBIT Next 3Y5.37%
EBIT Next 5YN/A
FCF growth 1Y-715.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-715.41%
OCF growth 3YN/A
OCF growth 5YN/A