SLM Corp (SLM) stock analysis

P/E below its 5-year median

SLM's P/E of 6.1 is below its own 5-year median of 7.8.

P/E below the industry

SLM's P/E of 6.1 is below the Personal Credit Institutions median of 8.8.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

SLM's price-to-book of 1.37 is below the Personal Credit Institutions median of 1.50.

Trading below fair value

The share price of $16.91 is below our fair value estimate of $23.08.

Margin of safety over 20%

The price is 26.7% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 2.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 25.3% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -9.0% over the last twelve months, against a 5-year average of -3.3% a year.

Growing slower than the industry

Revenue grew -6.7% over the last twelve months; the Personal Credit Institutions median is 8.8%.

Guidance raised

SLM raised its full year 2026 Non-interest Expenses outlook on Oct 22, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 24.7% over the last twelve months and averaged 30.5% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

SLM's return on equity of 24.7% is above the Personal Credit Institutions median of 22.7%.

Earnings shrank over 5 years

Net income shrank 3.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 31.7% over the last twelve months, against a 5-year average of 37.1%.

Net margin above the industry

SLM's net margin of 31.7% is above the Personal Credit Institutions median of 13.4%.

Low debt

Debt is 39.8% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 0.0% five years ago to 39.8%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals -42.5% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 0.36; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

SLM paid dividends worth 3.1% of the share price over the last twelve months.

Yield below Treasuries

The 3.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; SLM yields 3.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 9 fiscal years.

Covered by earnings

Dividends take 17.7% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.