SLM CORP (SLM)

US78442P1066 - Common Stock

24.86  +0.89 (+3.71%)

After market: 24.86 0 (0%)

Fundamental Rating

3

Taking everything into account, SLM scores 3 out of 10 in our fundamental rating. SLM was compared to 51 industry peers in the Consumer Finance industry. Both the profitability and financial health of SLM have multiple concerns. SLM has a correct valuation and a medium growth rate.



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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.
In the past 5 years SLM reported 4 times negative operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 2.15%, SLM is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
The Return On Equity of SLM (30.30%) is better than 94.12% of its industry peers.
Industry RankSector Rank
ROA 2.15%
ROE 30.3%
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 33.99%, 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.
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) 33.99%
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

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2

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
Compared to 5 years ago, SLM has less shares outstanding
The debt/assets ratio for SLM has been reduced compared to a year ago.

2.2 Solvency

A Debt/Equity ratio of 2.83 is on the high side and indicates that SLM has dependencies on debt financing.
The Debt to Equity ratio of SLM (2.83) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 2.83
Debt/FCF N/A
Altman-Z N/A
ROIC/WACCN/A
WACC11.97%

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

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5

3. Growth

3.1 Past

SLM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 126.67%, 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 quite strong growth in Revenue. The Revenue has grown by 11.42% 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)126.67%
EPS 3Y5.75%
EPS 5Y19.12%
EPS Q2Q%-309.09%
Revenue 1Y (TTM)11.42%
Revenue growth 3Y-0.04%
Revenue growth 5Y5.86%
Sales Q2Q%-6.56%

3.2 Future

The Earnings Per Share is expected to grow by 8.62% on average over the next years. This is quite good.
SLM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.58% yearly.
EPS Next Y6.6%
EPS Next 2Y8.16%
EPS Next 3Y8.62%
EPS Next 5YN/A
Revenue Next Year-4.39%
Revenue Next 2Y2.64%
Revenue Next 3Y4.58%
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 decreasing: in the next years the growth will be less than in the last years.

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.12, the valuation of SLM can be described as reasonable.
Based on the Price/Earnings ratio, SLM is valued a bit cheaper than the industry average as 72.55% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SLM to the average of the S&P500 Index (28.96), we can say SLM is valued rather cheaply.
SLM is valuated reasonably with a Price/Forward Earnings ratio of 8.21.
Based on the Price/Forward Earnings ratio, SLM is valued a bit cheaper than 74.51% of the companies in the same industry.
SLM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.12
Fwd PE 8.21

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.23
PEG (5Y)0.42
EPS Next 2Y8.16%
EPS Next 3Y8.62%

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5

5. Dividend

5.1 Amount

SLM has a Yearly Dividend Yield of 2.16%. 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 4.08.
SLM's Dividend Yield is comparable with the S&P500 average which is at 2.23.
Industry RankSector Rank
Dividend Yield 2.16%

5.2 History

The dividend of SLM is nicely growing with an annual growth rate of 70.42%!
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

17.77% 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.
DP17.77%
EPS Next 2Y8.16%
EPS Next 3Y8.62%

More info and screens

SLM CORP

NASDAQ:SLM (11/21/2024, 8:00:02 PM)

After market: 24.86 0 (0%)

24.86

+0.89 (+3.71%)

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 Cap5.28B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.16%
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 8.12
Fwd PE 8.21
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)1.23
PEG (5Y)0.42
Profitability
Industry RankSector Rank
ROA 2.15%
ROE 30.3%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) 33.99%
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 RankSector Rank
Debt/Equity 2.83
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)
High Growth Momentum
Growth
EPS 1Y (TTM)126.67%
EPS 3Y5.75%
EPS 5Y
EPS Q2Q%
EPS Next Y6.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.42%
Revenue growth 3Y-0.04%
Revenue growth 5Y
Sales 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