SLM CORP (SLM)
US78442P1066 - Common Stock
We assign a fundamental rating of 3 out of 10 to SLM. SLM was compared to 51 industry peers in the Consumer Finance industry. SLM has a bad profitability rating. Also its financial health evaluation is rather negative. SLM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SLM was profitable.
In the past year SLM has reported a negative cash flow from operations.
Each year in the past 5 years SLM has been profitable.
SLM had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.93%, SLM is doing good in the industry, outperforming 60.78% of the companies in the same industry.
The Return On Equity of SLM (29.97%) is better than 98.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 29.97% | ||
| ROIC | N/A |
ROA(3y)2.49%
ROA(5y)2.41%
ROE(3y)36.79%
ROE(5y)32.26%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 31.16%, SLM belongs to the top of the industry, outperforming 96.08% of the companies in the same industry.
In the last couple of years the Profit Margin of SLM has declined.
The Operating Margin and Gross Margin are not available for SLM so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 31.16% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-13.47%
PM growth 5Y-2.11%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
SLM does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, SLM has less shares outstanding
The number of shares outstanding for SLM has been reduced compared to 5 years ago.
The debt/assets ratio for SLM has been reduced compared to a year ago.
2.2 Solvency
SLM has a Debt/Equity ratio of 2.78. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SLM (2.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.44%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
SLM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.46%, which is quite impressive.
Measured over the past years, SLM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.12% on average per year.
Looking at the last year, SLM shows a decrease in Revenue. The Revenue has decreased by -0.77% in the last year.
Measured over the past years, SLM shows a small growth in Revenue. The Revenue has been growing by 5.86% on average per year.
EPS 1Y (TTM)51.46%
EPS 3Y5.75%
EPS 5Y19.12%
EPS growth Q2Q375.76%
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y-0.04%
Revenue growth 5Y5.86%
Revenue growth Q2Q29.99%
3.2 Future
Based on estimates for the next years, SLM will show a small growth in Earnings Per Share. The EPS will grow by 7.03% on average per year.
SLM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.39% yearly.
EPS Next Y4.67%
EPS Next 2Y6.21%
EPS Next 3Y7.03%
EPS Next 5YN/A
Revenue Next Year0.64%
Revenue Next 2Y2.67%
Revenue Next 3Y6.39%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.53, the valuation of SLM can be described as very reasonable.
Based on the Price/Earnings ratio, SLM is valued a bit cheaper than 62.75% of the companies in the same industry.
SLM is valuated cheaply when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.15 indicates a reasonable valuation of SLM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SLM indicates a somewhat cheap valuation: SLM is cheaper than 68.63% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, SLM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.53 | ||
| Fwd PE | 8.15 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SLM does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.83
PEG (5Y)0.45
EPS Next 2Y6.21%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
SLM has a Yearly Dividend Yield of 2.12%.
SLM's Dividend Yield is a higher than the industry average which is at 4.32.
SLM's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
On average, the dividend of SLM grows each year by 70.42%, 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 last 3 years.
Dividend Growth(5Y)70.42%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
21.10% of the earnings are spent on dividend by SLM. This is a low number and sustainable payout ratio.
The dividend of SLM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP21.1%
EPS Next 2Y6.21%
EPS Next 3Y7.03%
SLM CORP
NASDAQ:SLM (4/24/2024, 7:00:03 PM)
After market: 22.75 +0.65 (+2.94%)22.1
+0.17 (+0.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.53 | ||
| Fwd PE | 8.15 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.83
PEG (5Y)0.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 29.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 31.16% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)51.46%
EPS 3Y5.75%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y-0.04%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y