SLM Corporation

Valuation Analysis

About the Company

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 provides retail deposit accounts, including high-yield savings accounts, money market accounts, and certificates of deposit; and interest-bearing omnibus accounts. 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.

SLM Corporation Stock at a Glance

SLM Corporation (SLM) is currently trading at $22.38 with a market capitalization of $4.2B. The trailing P/E ratio stands at 6.22x, with a forward P/E of 6.61x. The 52-week range spans from $17.77 to $34.97; the current price is 36% below the yearly high. Year-over-year revenue growth stands at +2.5%. The net profit margin stands at 44.93%.

💰 Dividend

SLM Corporation pays an annual dividend of $0.52 per share, representing a yield of 2.32%. The payout ratio stands at 14.44%.

📊 Analyst Rating

11 analysts rate SLM Corporation (SLM) on consensus: Buy. The average price target is $28.82, implying +28.77% from the current price. Analyst price targets range from $23.00 to $35.00.

SLM Corporation: The Investment Case in Detail

SLM Corporation (SLM) operates in the Financial Services — specifically Credit Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 100%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 30.93% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Wall Street consensus sits at Buy with an average price target implying roughly 28.77% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

Revenue growth has slowed to just 2.5%, which is below nominal GDP — the business is no longer outgrowing the broader economy. The debt-to-equity ratio of 253.08% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn. Short interest sits at 13.5% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

With a PEG ratio of 0.51, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The analyst consensus price target implies 28.77% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (13.5%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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