Fundamental Analysis of SLM CORP(NASDAQ:SLM) stock

Fundamental Rating

Taking everything into account, SLM scores 4 out of 10 in our fundamental rating. SLM was compared to 52 industry peers in the Consumer Finance industry. SLM may be in some trouble as it scores bad on both profitability and health. SLM has a correct valuation and a medium growth rate.

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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.

Each year in the past 5 years SLM has been profitable.

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

1.2 Ratios

SLM has a better Return On Assets (2.15%) than 61.54% of its industry peers.

SLM's Return On Equity of 30.30% is amongst the best of the industry. SLM outperforms 94.23% of its industry peers.

		Industry Rank	Sector 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

SLM has a better Profit Margin (33.99%) than 98.08% of its industry peers.

SLM's Profit Margin has declined 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 Rank	Sector 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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ROA

ROE

ROIC

Operating and Profit Margin

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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

Compared to 1 year ago, SLM has an improved debt to assets ratio.

2.2 Solvency

SLM has a Debt/Equity ratio of 2.83. This is a high value indicating a heavy dependency on external financing.

With a Debt to Equity ratio value of 2.83, SLM perfoms like the industry average, outperforming 46.15% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	2.83
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACCN/A

WACC12.19%

2.3 Liquidity

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

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 126.67% over the past year.

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.

SLM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.42%.

SLM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.86% yearly.

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

Based on estimates for the next years, SLM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.23% on average per year.

SLM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.59% yearly.

EPS Next Y6.92%

EPS Next 2Y8.73%

EPS Next 3Y8.98%

EPS Next 5Y9.23%

Revenue Next Year1.84%

Revenue Next 2Y4.66%

Revenue Next 3Y5.4%

Revenue Next 5Y4.59%

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. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.08 indicates a reasonable valuation of SLM.

69.23% of the companies in the same industry are more expensive than SLM, based on the Price/Earnings ratio.

When comparing the Price/Earnings ratio of SLM to the average of the S&P500 Index (27.73), we can say SLM is valued rather cheaply.

The Price/Forward Earnings ratio is 9.08, which indicates a very decent valuation of SLM.

Based on the Price/Forward Earnings ratio, SLM is valued a bit cheaper than 67.31% of the companies in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 22.83. SLM is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	9.08
Fwd PE	9.08

4.2 Price Multiples

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

4.3 Compensation for Growth

SLM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.

PEG (NY)1.31

PEG (5Y)0.48

EPS Next 2Y8.73%

EPS Next 3Y8.98%

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5. Dividend

5.1 Amount

SLM has a Yearly Dividend Yield of 1.89%.

SLM's Dividend Yield is a higher than the industry average which is at 4.38.

SLM's Dividend Yield is comparable with the S&P500 average which is at 2.34.

		Industry Rank	Sector Rank
Dividend Yield	1.89%

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.

As SLM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.

Dividend Growth(5Y)70.42%

Div Incr Years1

Div Non Decr Years5

5.3 Sustainability

SLM pays out 17.77% of its income as dividend. This is a sustainable payout ratio.

SLM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.

DP17.77%

EPS Next 2Y8.73%

EPS Next 3Y8.98%

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SLM CORP

NASDAQ:SLM (12/20/2024, 8:00:02 PM)

After market: 27.76 -0.03 (-0.11%)

27.79

+0.32 (+1.16%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupFinancial Services

GICS IndustryConsumer Finance

Earnings (Last)10-23 2024-10-23/amc

Earnings (Next)01-22 2025-01-22/amc

Inst Owners99.13%

Inst Owner Change-2.69%

Ins Owners0.61%

Ins Owner Change-0.34%

Market Cap5.90B

Analysts83.75

Price Target28.39 (2.16%)

Short Float %3.83%

Short Ratio3.86

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1.89%

Dividend Growth(5Y)70.42%

DP17.77%

Div Incr Years1

Div Non Decr Years5

Ex-Date12-05 2024-12-05 (0.13)

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)-232.76%

Min EPS beat(2)-496.31%

Max EPS beat(2)30.8%

EPS beat(4)3

Avg EPS beat(4)-111.75%

Min EPS beat(4)-496.31%

Max EPS beat(4)30.8%

EPS beat(8)4

Avg EPS beat(8)-82.14%

EPS beat(12)5

Avg EPS beat(12)-61.24%

EPS beat(16)9

Avg EPS beat(16)-25.07%

Revenue beat(2)1

Avg Revenue beat(2)-2.36%

Min Revenue beat(2)-6.28%

Max Revenue beat(2)1.56%

Revenue beat(4)3

Avg Revenue beat(4)-0.12%

Min Revenue beat(4)-6.28%

Max Revenue beat(4)3.25%

Revenue beat(8)6

Avg Revenue beat(8)0.98%

Revenue beat(12)10

Avg Revenue beat(12)13.74%

Revenue beat(16)13

Avg Revenue beat(16)19.63%

PT rev (1m)5.7%

PT rev (3m)4.64%

EPS NQ rev (1m)0%

EPS NQ rev (3m)0.26%

EPS NY rev (1m)0.3%

EPS NY rev (3m)-2.84%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)0.46%

Revenue NY rev (1m)6.52%

Revenue NY rev (3m)4.84%

Valuation

		Industry Rank	Sector Rank
PE	9.08
Fwd PE	9.08
P/S	3.1
P/FCF	N/A
P/OCF	N/A
P/B	2.77
P/tB	2.85
EV/EBITDA	N/A

EPS(TTM)3.06

EY11.01%

EPS(NY)3.06

Fwd EY11.02%

FCF(TTM)-1.7

FCFYN/A

OCF(TTM)-1.7

OCFYN/A

SpS8.96

BVpS10.05

TBVpS9.74

PEG (NY)1.31

PEG (5Y)0.48

Profitability

		Industry Rank	Sector Rank
ROA	2.15%
ROE	30.3%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	33.99%
GM	N/A
FCFM	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

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-13.47%

PM growth 5Y-2.11%

GM growth 3YN/A

GM growth 5YN/A

F-Score6

Asset Turnover0.06

Health

		Industry Rank	Sector Rank
Debt/Equity	2.83
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-Score6

WACC12.19%

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)126.67%

EPS 3Y5.75%

EPS 5Y19.12%

EPS Q2Q%-309.09%

EPS Next Y6.92%

EPS Next 2Y8.73%

EPS Next 3Y8.98%

EPS Next 5Y9.23%

Revenue 1Y (TTM)11.42%

Revenue growth 3Y-0.04%

Revenue growth 5Y5.86%

Sales Q2Q%-6.56%

Revenue Next Year1.84%

Revenue Next 2Y4.66%

Revenue Next 3Y5.4%

Revenue Next 5Y4.59%

EBIT growth 1YN/A

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year-13.51%

EBIT Next 3Y-4.87%

EBIT Next 5YN/A

FCF growth 1Y-801.11%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-801.11%

OCF growth 3YN/A

OCF growth 5YN/A

SLM CORP (SLM)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens