SLM

SLM Corporation

Fundamental data last updated:October 10, 2026

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company profile

SECTOR

Financial Services

industry

Financial - Credit Services

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

SLM Corporation, through its subsidiaries, originates and services private education loans to students and their families to finance the cost of their education in the United States. It also offers retail deposit accounts, including certificates of deposit, money market deposit accounts, and high-yield savings accounts; and omnibus accounts, as well as credit card loans. It serves students and families through financial aid, federal loans, and student and family resources. The company was formerly known as New BLC Corporation and changed its name to SLM Corporation in December 2013. SLM Corporation was founded in 1972 and is headquartered in Newark, Delaware.

 


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VALUATION

P/E

5.72

Market Cap ($M USD)

$4.13B

Forward P/E

5.62

PEG

3.32

PRICE TO SALES

1.34

PRICE TO BOOK

1.75

EV / EBITDA

5.11

5-Year Average P/E

Free Cash Flow Yield

15.65%

DCF Value

$34.45

Graham Number

$32.78

Price to FCF

6.39

EV to FCF

7.96

Earnings Yield

17.50%

FCF Yield

15.65%

DIVIDEND

Yield

2.38%

Annual Payout

$0.52

Payout Ratio

93.25%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.83

Next Year EPS Growth Estimate

$3.89

Next Year Revenue Growth Estimate

$2.18B

Return on Equity (ROE)

31.16%

FREE CASH FLOW

Operating Margin

32.12%

Debt-to-Equity

2.39

Piotroski F-Score

8

Altman Z-Score

0.81

Return on Invested Capital (ROIC)

3.42%

Current Ratio

13.93

Quick Ratio

13.93

Net Debt to EBITDA

1.01

Interest Coverage

1.08

Gross Profit margin

54.04%

FCF PER SHARE

$3.30

REVENUE PER SHARE

$15.77

Analyze SLM on TradingView

Gainseekers Quantitative Analysis

Summary

SLM Corporation’s valuation presents a compelling opportunity for deep value investors. The stock has traded below its DCF Value and Graham Number, suggesting a significant market mispricing. With a Forward P/E under 6 and an Earnings Yield of 17.04%, the company appears undervalued relative to its earnings potential. However, the Altman Z-score of 0.81 raises red flags about financial distress, indicating potential risks in its capital structure. Despite these concerns, the market’s current pricing could offer substantial upside if the company navigates its challenges effectively.

AI Exposure / Tech Reliance

In the Financial - Credit Services industry, SLM Corporation is well-positioned to leverage AI and modern technology to enhance its credit assessment processes and customer service. The sector's inherent need for data analytics and automation aligns with technological advancements, potentially boosting operational efficiency. However, the company's adaptability will depend on its ability to integrate these technologies seamlessly into its existing systems.

The Bull Case

For value and GARP investors, SLM Corporation offers a robust bull case. The company's ROIC of 3.42% and a strong FCF Yield of 15.24% highlight its capital efficiency and ability to generate cash. With a Piotroski F-Score of 8, it demonstrates solid financial health and operational efficiency. The impressive operating margin of 32.12% underscores its pricing power and ability to maintain profitability, making it an attractive investment for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, SLM Corporation faces significant structural risks. The Debt/Equity ratio of 2.39 indicates a heavy reliance on debt, which could strain financial flexibility. The Price/Book ratio of 1.80 suggests the stock isn't as cheap as it might appear at first glance. Additionally, the Altman Z-score signals potential financial distress, and the high payout ratio of 93.25% raises concerns about dividend sustainability. These factors could deter risk-averse investors wary of potential volatility.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$29.50

Institutional Ownership %

1-Year Beta

1.02

Insider Buying % (6 Mo)

Distance to 52-Week High

59.83%

Distance to 52-Week Low

18.78%

EARNINGS SURPRISE %

35.09%

50-DAY SMA

$21.85

200-DAY SMA

$25.68

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.