A Business at a Glance
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SLM Corp
SLM
$5.1B
Mkt Cap
$24.29
+0.45%
SLM Corp (SLM) has a current P/E ratio of 7.0, compared to its historical median P/E of 7.8. The stock is currently considered Fair based on its historical valuation range.
SLM Corp (SLM) has a 5-year average return on invested capital (ROIC) of 9.0%. This is below average and may indicate limited pricing power.
SLM Corp (SLM) has a market capitalization of $4.6B. It is classified as a mid-cap stock.
Yes, SLM Corp (SLM) pays a dividend with a trailing twelve-month yield of 2.31%. The company also returns capital through share buybacks, with a buyback yield of 13.75%.
Based on historical P/E analysis, SLM Corp (SLM) appears fair. The current P/E of 7.0 is 10% below its historical median of 7.8. The estimated fair value CAGR (P/E method) is 11.7%.
SLM Corp (SLM) operates in the Personal Credit Institutions industry, within the Financials sector.
SLM Corp (SLM) reported annual revenue of $2.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
SLM Corporation, operating as Sallie Mae, is the premier private student loan originator and servicer in the United States, serving more families than any other private student loan lender. The company originates and holds for investment high-quality Private Education Loans that bridge the gap between the cost of higher education and amounts funded through family resources, scholarships, grants, and federal financial aid; these loans are not made, insured, or guaranteed by any state or federal government. Sallie Mae operates a consumer banking business through its wholly owned subsidiary, Sallie Mae Bank, an industrial bank established in 2005, which also offers FDIC-insured deposit products. The business model is characterized by origination and servicing of private education loans with cyclical volume patterns peaking in the third quarter (fall semester disbursements) and a secondary peak in the first quarter (spring semester disbursements), generating revenue through net interest margin and fee-based income. The company pursues a capital-light strategy through strategic partnerships and loan sales, designating a portion of new originations as held for sale while maintaining a core portfolio for investment; management targets net interest margins in the low to mid-5% range and aims to deliver mid to high single-digit private student loan portfolio growth supported by loan sales and other structures. Sallie Mae's competitive moat derives from its scale as the largest private student lender, established brand, technology infrastructure, and direct relationships with students, families, and educational institutions across the United States.
【Federal reforms driving multi-year growth】 Management expects the recently passed federal student loan reforms, particularly new PLUS loan caps, to generate a significant expansion opportunity beginning in the second half of 2026 and accelerating through 2027 and beyond. The company anticipates that federal reforms could increase originations by up to 70% over the next several years, with the first wave of affected students beginning their undergraduate and graduate journeys in H2 2026, though the impact in 2026 will be muted due to mid-year implementation. Sallie Mae is investing ahead of this anticipated volume growth, with non-interest expenses expected to increase in 2026 to support graduate lending programs and client acquisition, though management expects the rate of expense growth to moderate in 2027 as efficiency gains offset volume-related costs. The company plans to grow its strategic partnership business in 2026 while maintaining a flat to slightly negative bank portfolio year-over-year, with the expectation that roughly 30%-40% of private student lending originations will flow through partnerships and the remainder managed through seasoned portfolio sales. Management projects that if the PLUS opportunity materializes as predicted, EPS growth will accelerate beginning in 2027 with high teens to low 20% growth, with elevated growth continuing for several years as the PLUS opportunity is fully realized and the strategic partnership business expands.
| Metric | Target | Period |
|---|---|---|
| Diluted earnings per common share | $3.10–$3.20 | FY2026 |
| Private education loan originations growth | 12%-14% | FY2026 |
| Non-interest expenses | $750–$780 million | FY2026 |
| Net charge-offs | $345–$385 million | FY2026 |
Diluted earnings per common share (FY2026): “We expect our diluted earnings per common share for 2026 to be between $3.10-$3.20.”
Private education loan originations growth (FY2026): “we expect full-year 2026 private education loan origination growth of 12%-14%”
Non-interest expenses (FY2026): “expected non-interest expenses for full year of 2026 will be between $750 and $780 million”
Net charge-offs (FY2026): “We expect net charge-offs for our total loan portfolio will be between $345 and $385 million.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.0B | 2.0B | 1.8B | 1.8B | 1.8B | 2.0B |
| Net Income | 733M | 729M | 590M | 564M | 460M | 1.2B |
| EPS | $3.67 | $3.46 | $2.68 | $2.41 | $1.76 | $3.61 |
| Free Cash Flow | 0 | -399M | -329M | -145M | 5.0M | -50M |
| ROIC | 9.0% | 8.9% | 7.5% | 8.0% | 6.1% | 14.6% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 2.53 | 2.39 | 2.98 | 2.78 | 3.03 | 2.76 |
| Dividends/Share | $0.56 | $0.52 | $0.46 | $0.44 | $0.44 | $0.20 |
| Operating Income | 135M | 123M | 113M | 84M | 67M | 1.5B |
| Operating Margin | 6.9% | 6.2% | 6.1% | 4.7% | 3.7% | 76.0% |
| ROE | 30.1% | 31.6% | 29.2% | 31.2% | 23.7% | 49.1% |
| Shares Outstanding | 189M | 211M | 220M | 234M | 261M | 320M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 736M | 885M | 960M | 1.1B | 1.4B | 1.7B | 1.8B | 2.0B | 1.8B | 1.8B | 1.8B | 2.0B | 2.0B |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 130M | 159M | 184M | 213M | 252M | 278M | 282M | 258M | 270M | 327M | 349M | 346M | 358M |
| EBIT | 40M | 42M | 70M | 491M | -52M | 31M | 1.2B | 1.5B | 67M | 84M | 113M | 123M | 135M |
| Op. Margin | 5.4% | 4.7% | 7.2% | 43.6% | -3.8% | 1.9% | 63.7% | 76.0% | 3.7% | 4.7% | 6.1% | 6.2% | 6.9% |
| Net Income | 181M | 255M | 229M | 273M | 472M | 561M | 871M | 1.2B | 460M | 564M | 590M | 729M | 733M |
| Net Margin | 24.6% | 28.8% | 23.9% | 24.3% | 34.7% | 33.6% | 48.1% | 57.0% | 25.2% | 31.2% | 31.9% | 36.7% | 37.3% |
| Non-Recurring | 38M | 5.4M | 0 | 0 | 0 | 0 | 38M | 1.3M | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 0.3% | 11.3% | 6.4% | 5.3% | 7.3% | 7.5% | 11.3% | 14.6% | 6.1% | 8.0% | 7.5% | 8.9% | 9.0% |
| ROE | 12.1% | 13.0% | 10.3% | 11.3% | 17.3% | 17.9% | 29.7% | 49.1% | 23.7% | 31.2% | 29.2% | 31.6% | 30.1% |
| ROA | 1.5% | 1.8% | 1.4% | 1.4% | 1.9% | 1.9% | 2.7% | 3.9% | 1.6% | 1.9% | 2.0% | 2.4% | 2.5% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | -437M | -85M | -199M | -171M | -103M | -16M | -183M | -50M | 5.0M | -145M | -329M | -399M | -328M |
| Free Cash Flow | -437M | -85M | -199M | -171M | -103M | -16M | -183M | -50M | 5.0M | -145M | -329M | -399M | 0 |
| Owner Earnings | -471M | -116M | -232M | -211M | -148M | -61M | -234M | -96M | -55M | -209M | -392M | -459M | -548M |
| CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Maint. CapEx | 9.4M | 8.9M | 10M | 12M | 14M | 15M | 15M | 16M | 25M | 28M | 23M | 20M | 177M |
| Growth CapEx | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0 |
| D&A | 9.4M | 8.9M | 10M | 12M | 14M | 15M | 15M | 16M | 25M | 28M | 23M | 20M | 177M |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 13M | 20M | 21M | 0 | 0 | 51M | 46M | 60M | 113M | 101M | 99M | 108M | 106M |
| Dividend Yield | 0.4% | 0.6% | 0.8% | N/A | N/A | 1.4% | 1.5% | 1.2% | 2.8% | 3.0% | 2.1% | 1.7% | 2.3% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 167M | 558M | 1.5B | 713M | 350M | 248M | 369M | 630M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | 4.8% | 13.2% | 27.0% | 18.0% | 8.1% | 4.1% | 6.4% | 13.7% |
| Stock-Based Comp | 25M | 22M | 23M | 28M | 32M | 31M | 36M | 31M | 34M | 36M | 40M | 41M | 42M |
| Debt Repayment | 0 | 0 | 0 | 1.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -2.5B | -1.5B | 41M | 1.5B | 1.5B | -1.4B | -1.3B | -922M | -1.7B | -1.3B | -193M | -138M | -732M |
| Cash & Equiv. | 2.4B | 2.4B | 1.9B | 1.5B | 2.6B | 5.6B | 4.5B | 4.3B | 4.6B | 4.1B | 4.7B | 4.2B | 6.9B |
| Long-Term Debt | 0 | 579M | 2.2B | 3.3B | 4.3B | 4.4B | 5.2B | 5.9B | 5.2B | 5.2B | 6.4B | 5.4B | 5.7B |
| Debt/Equity | 0.00 | 0.51 | 0.92 | 1.32 | 1.44 | 1.40 | 2.02 | 2.76 | 3.03 | 2.78 | 2.98 | 2.39 | 2.53 |
| Interest Coverage | 0.4 | 0.3 | 0.4 | 1.6 | -0.1 | 0.0 | 2.1 | 4.0 | 0.1 | 0.1 | 0.1 | 0.2 | 0.2 |
| Equity | 1.8B | 2.1B | 2.3B | 2.5B | 3.0B | 3.3B | 2.6B | 2.1B | 1.7B | 1.9B | 2.2B | 2.5B | 2.4B |
| Total Assets | 13.0B | 15.2B | 18.5B | 21.8B | 26.6B | 32.7B | 30.8B | 29.2B | 28.8B | 29.2B | 30.1B | 29.7B | 29.4B |
| Total Liabilities | 11.1B | 13.1B | 16.2B | 19.3B | 23.7B | 29.4B | 28.2B | 27.1B | 27.1B | 27.3B | 27.9B | 27.3B | 27.0B |
| Intangibles | 3.2M | 1.7M | N/A | N/A | N/A | N/A | N/A | 0 | 68M | 13M | 7.4M | 3.9M | 3.1M |
| Retained Earnings | 113M | 367M | 595M | 868M | 1.3B | 1.9B | 1.7B | 2.8B | 3.2B | 3.6B | 4.1B | 4.7B | 5.0B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 0.42 | 0.59 | 0.53 | 0.62 | 1.07 | 1.30 | 2.25 | 3.61 | 1.76 | 2.41 | 2.68 | 3.46 | 3.67 |
| Owner EPS | -1.09 | -0.27 | -0.54 | -0.48 | -0.34 | -0.14 | -0.61 | -0.30 | -0.21 | -0.89 | -1.78 | -2.18 | -2.90 |
| Book Value | 4.24 | 4.86 | 5.43 | 5.61 | 6.74 | 7.67 | 6.62 | 6.71 | 6.61 | 8.04 | 9.81 | 11.63 | 12.93 |
| Cash Flow/Share | -1.01 | -0.20 | -0.46 | -0.39 | -0.23 | -0.04 | -0.47 | -0.15 | 0.02 | -0.62 | -1.50 | -1.89 | 4.83 |
| Dividends/Share | 0.03 | 0.05 | 0.05 | 0.00 | 0.00 | 0.12 | 0.12 | 0.20 | 0.44 | 0.44 | 0.46 | 0.52 | 0.56 |
| Shares Out. | 431.6M | 431.7M | 432.3M | 440.7M | 441.0M | 431.9M | 387.1M | 320.2M | 261.4M | 233.9M | 220.2M | 210.7M | 188.6M |
| Valuation | |||||||||||||
| P/E Ratio | 21.4 | 9.6 | 18.1 | 16.2 | 6.9 | 6.2 | 4.9 | 4.9 | 8.6 | 7.7 | 10.2 | 8.0 | 6.6 |
| P/FCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 795.5 | N/A | N/A | N/A | N/A |
| EV/EBIT | 34.0 | 21.7 | 60.4 | 7.6 | N/A | 65.8 | 68.1 | 2.5 | 33.5 | 35.8 | 51.7 | 45.8 | 28.4 |
| Price/Book | 2.1 | 1.1 | 1.7 | 1.7 | 1.0 | 0.9 | 1.3 | 1.3 | 0.9 | 0.9 | 2.8 | 2.4 | 1.9 |
| Price/Sales | 4.6 | 3.8 | 2.8 | 3.9 | 3.2 | 2.2 | 1.7 | 2.6 | 2.3 | 1.8 | 2.5 | 3.1 | 2.3 |
| FCF Yield | -11.2% | -3.5% | -4.8% | -3.9% | -3.2% | -0.5% | -4.3% | -0.9% | 0.1% | -3.3% | -5.5% | -6.9% | N/A |
| Market Cap | 3.9B | 2.4B | 4.2B | 4.4B | 3.2B | 3.5B | 4.2B | 5.7B | 4.0B | 4.3B | 6.0B | 5.8B | 4.6B |
| Avg. Price | 7.86 | 7.74 | 6.28 | 9.88 | 9.75 | 8.36 | 7.78 | 16.19 | 15.70 | 14.24 | 21.19 | 29.35 | 24.29 |
| Year-End Price | 9.00 | 5.66 | 9.62 | 10.04 | 7.33 | 8.00 | 10.93 | 17.73 | 15.19 | 18.57 | 27.40 | 27.52 | 24.29 |
SLM Corp passes 4 of 9 quality checks, suggesting mixed fundamentals.
SLM Corp trades at 7.0x trailing earnings, compared to its 15-year median P/E of 7.8x, suggesting it is currently Fair relative to its historical range. The company's 5-year average ROIC is 9.0%. Total shareholder yield (dividends + buybacks) is 16.1%. At current prices, the estimated annualized return to fair value is +11.7%.
SLM Corp (SLM) has a net profit margin of 36.7%. This is a strong margin indicating high profitability.
SLM Corp (SLM) generated $-399 million in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
SLM Corp (SLM) has a debt-to-equity ratio of 2.39. This indicates higher leverage, which may increase financial risk.
SLM Corp (SLM) reported earnings per share (EPS) of $3.46 in its most recent fiscal year.
SLM Corp (SLM) has a return on equity (ROE) of 31.6%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 16 years of financial data for SLM Corp (SLM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
SLM Corp (SLM) has a book value per share of $11.63, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the recently passed federal student loan reforms, particularly new PLUS loan caps, to generate a significant expansion opportunity beginning in the second half of 2026 and accelerating through 2027 and beyond. The company anticipates that federal reforms could increase originations by up to 70% over the next several years, with the first wave of affected students beginning their undergraduate and graduate journeys in H2 2026, though the impact in 2026 will be muted due to mid-year implementation. Sallie Mae is investing ahead of this anticipated volume growth, with non-interest expenses expected to increase in 2026 to support graduate lending programs and client acquisition, though management expects the rate of expense growth to moderate in 2027 as efficiency gains offset volume-related costs. The company plans to grow its strategic partnership business in 2026 while maintaining a flat to slightly negative bank portfolio year-over-year, with the expectation that roughly 30%-40% of private student lending originations will flow through partnerships and the remainder managed through seasoned portfolio sales. Management projects that if the PLUS opportunity materializes as predicted, EPS growth will accelerate beginning in 2027 with high teens to low 20% growth, with elevated growth continuing for several years as the PLUS opportunity is fully realized and the strategic partnership business expands.
Based on recent SEC filings and earnings calls, SLM Corp (SLM) has provided the following forward guidance: Diluted earnings per common share: $3.10–$3.20 (FY2026); Private education loan originations growth: 12%-14% (FY2026); Non-interest expenses: $750–$780 million (FY2026); Net charge-offs: $345–$385 million (FY2026).