SLM (SLM)
NASDAQ:SLM
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SLM
(NASDAQ:SLM)
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Rating:62Neutral
Price Target:
$23.50
▲(9.61% Upside)
Action:ReiteratedDate:03/10/26
The score is driven primarily by solid profitability but constrained by leverage and historically volatile cash flow. Valuation is a clear positive (very low P/E with a dividend), while technicals remain weak with the stock in a downtrend. Earnings-call outlook is mixed: strong 2025 execution and longer-term growth opportunities are tempered by guided 2026 EPS pressure and higher planned expenses.
Positive Factors
High and improving profitability margins
SLM has delivered consistently strong net margins (~20%+) and expanded EBIT margins into the low‑30% range in 2025. Durable margin strength supports high returns on equity, funds reinvestment and buybacks, and provides a buffer versus credit cycles and funding cost volatility.
Negative Factors
Elevated leverage on the balance sheet
Leverage at ~2.4x–3.0x increases sensitivity to rising funding costs and credit stress, constraining strategic flexibility. High leverage amplifies downside in adverse cycles, limits the pace of durable capital returns without further de‑risking, and raises refinancing and regulatory risk over time.
Read all positive and negative factors
Positive Factors
Negative Factors
High and improving profitability margins
SLM has delivered consistently strong net margins (~20%+) and expanded EBIT margins into the low‑30% range in 2025. Durable margin strength supports high returns on equity, funds reinvestment and buybacks, and provides a buffer versus credit cycles and funding cost volatility.
Read all positive factors
SLM (SLM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.25B
Dividend Yield1.88%
Average Volume (3M)4.26M
Price to Earnings (P/E)7.5
Beta (1Y)0.92
Revenue Growth0.59%
EPS Growth-1.11%
CountryUS
Employees1,710
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.12
Shares Outstanding198,154,630
10 Day Avg. Volume2,896,898
30 Day Avg. Volume4,263,394
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)2.29
Price to Sales (P/S)1.80
P/FCF Ratio9.74
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue1.89
Enterprise Value/Gross Profit3.56
Enterprise Value/Ebitda5.83
Forecast
1Y Price Target
$27.90Price Target Upside30.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)2.77
Revenue Forecast (FY)$1.85B
SLM Business Overview & Revenue Model
Company Description
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 also offers retail deposit accounts, including certificates o...
How the Company Makes Money
SLM primarily makes money through a spread-based lending model and related fees. The company originates private student loans and earns interest income on those loans; its profitability is driven by net interest income (the difference between inte...
SLM Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
Balanced result: the company delivered strong 2025 operating results (notably EPS growth, originations expansion, improving NIM, a strategic partnership launch, and robust capital returns) and laid out an ambitious growth opportunity from federal Plus reform. However, the near-term outlook includes deliberate but sizable investments that pressure 2026 EPS and expenses, some upticks in early-stage delinquencies and quarter NCO rates, and increased complexity from a changed loan-sale strategy. Management emphasizes long-term upside (EPS acceleration beginning in 2027 if the Plus TAM materializes) while accepting short-term trade-offs.Positive Updates
Strong Full-Year EPS Growth
GAAP diluted EPS for full year 2025 was $3.46 versus $2.68 in 2024, an increase of approximately 29% year-over-year; Q4 GAAP diluted EPS was $1.12.
Negative Updates
Near-Term EPS Pressure from Planned Investments
Company guided 2026 full-year diluted EPS to $2.70–$2.80 versus $3.46 in 2025, implying an approximate 19%–22% decline year-over-year driven by planned investments and strategic choices.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year EPS Growth
GAAP diluted EPS for full year 2025 was $3.46 versus $2.68 in 2024, an increase of approximately 29% year-over-year; Q4 GAAP diluted EPS was $1.12.
Read all positive updates
Company Guidance
SLM's 2026 guidance calls for private education loan originations to grow 12–14% (with most Plus‑cap impact in 2H), full‑year non‑interest expense of $750–$780 million (driven ~20% by normal market cost increases, ~40% by one‑time investments in product/credit/strategic enablers, and the remainder by higher marketing/acquisition spend), net charge‑offs of $345–$385 million, and diluted EPS of $2.70–$2.80. The company expects the bank portfolio to be flat to slightly negative in 2026, then to grow roughly 1–2 percentage points per year thereafter as strategic partnerships scale (targeting ~30–40% of originations through partnerships at steady state), anticipates 2027 expense growth to be about half of 2026’s rate, aims to drive the efficiency ratio back to the low‑30s by 2030, and noted that a fully phased‑in Plus reform could ultimately add an estimated $5 billion of annual originations (≈70% above 2025) with EPS acceleration in 2027 of high‑teens to low‑20% growth.SLM Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
35
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.11B | 2.99B | 2.84B | 2.37B | 2.41B |
| Gross Profit | 1.65B | 1.44B | 1.46B | 1.19B | 2.06B |
| EBITDA | 995.32M | 816.29M | 796.11M | 648.06M | 1.56B |
| Net Income | 744.85M | 608.33M | 581.39M | 469.01M | 1.16B |
Balance Sheet | |||||
| Total Assets | 29.75B | 30.07B | 29.17B | 28.81B | 29.22B |
| Cash, Cash Equivalents and Short-Term Investments | 4.29B | 6.69B | 6.56B | 6.96B | 6.85B |
| Total Debt | 5.86B | 6.44B | 5.23B | 5.24B | 5.93B |
| Total Liabilities | 27.29B | 27.91B | 27.29B | 27.08B | 27.07B |
| Stockholders Equity | 2.45B | 2.16B | 1.88B | 1.73B | 2.15B |
Cash Flow | |||||
| Free Cash Flow | 575.52M | -329.39M | -144.64M | 4.99M | -49.52M |
| Operating Cash Flow | 575.52M | -329.39M | -144.64M | 4.99M | -49.52M |
| Investing Cash Flow | 0.00 | 675.99M | -12.46M | 1.08B | 2.60B |
| Financing Cash Flow | -500.21M | 228.16M | -316.23M | -854.89M | -2.62B |
SLM Technical Analysis
Neutral
21.44
Price Trends
22.12
Negative
24.80
Negative
27.17
Negative
Market Momentum
0.07
Negative
52.42
Neutral
62.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLM, the sentiment is Neutral. The current price of 21.44 is above the 20-day moving average (MA) of 20.66, below the 50-day MA of 22.12, and below the 200-day MA of 27.17, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 52.42 is Neutral, neither overbought nor oversold. The STOCH value of 62.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SLM.
SLM Risk Analysis
SLM disclosed 37 risk factors in its most recent earnings report. SLM reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SLM Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $6.56B | 10.25 | 23.40% | 6.07% | 9.51% | 29.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $4.25B | 7.53 | 31.14% | 1.88% | 0.59% | -1.11% | |
61 Neutral | $1.70B | 16.10 | 9.47% | ― | 9.68% | 94.85% | |
58 Neutral | $5.00B | 11.59 | 26.63% | ― | 10.30% | 154.64% | |
54 Neutral | $4.75B | 11.27 | 11.96% | 0.87% | 9.14% | 291.99% | |
50 Neutral | $755.01M | -54.17 | -3.16% | 4.95% | -25.22% | -174.34% |
* Financial Sector Average
SLM
SLM
21.47
-3.50
-14.03%
CACC
Credit Acceptance
465.15
-28.04
-5.69%
NNI
Nelnet
132.29
28.94
28.00%
NAVI
Navient
7.94
-2.48
-23.78%
LC
LendingClub
14.77
5.57
60.54%
OMF
OneMain Holdings
55.96
15.96
39.90%
SLM Corporate Events
Business Operations and StrategyM&A Transactions
SLM Explores $2 Billion Private Student Loan Sale
Neutral
Mar 12, 2026
On March 11, 2026, SLM Corporation Chief Executive Officer Jon Witter told investors at the RBC Capital Markets Global Financial Institutions Conference that its subsidiary, Sallie Mae Bank, has reached indicative terms for the potential sale of a...
Business Operations and StrategyStock Buyback
SLM Announces Major Accelerated Share Repurchase Agreement
Positive
Mar 9, 2026
On March 9, 2026, Sallie Mae entered into a $200 million accelerated share repurchase agreement with Goldman Sachs under its $500 million buyback authorization, following approximately $91 million of repurchases earlier in the year and lifting fir...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresRegulatory Filings and Compliance
SLM Updates Investor Presentation Highlighting Strong 2025 Results
Positive
Feb 20, 2026
On or about February 20, 2026, SLM updated its “Investor Presentation as of December 31, 2025,” providing supplemental detail to its January 22, 2026 fourth-quarter and full-year 2025 earnings disclosure. The materials highlight that p...
Stock BuybackFinancial Disclosures
SLM Highlights Strong 2025 Results and New Buyback Plan
Positive
Feb 13, 2026
On or about February 13, 2026, SLM Corporation published its fourth-quarter and full-year 2025 investor presentation, detailing a 6% rise in full-year private education loan originations to $7.4 billion and a 4% increase in the fourth quarter vers...
Stock BuybackFinancial Disclosures
SLM Announces Strong 2025 Results and New Buyback Plan
Positive
Jan 22, 2026
On January 22, 2026, Sallie Mae reported its fourth quarter and full-year 2025 results, highlighting GAAP diluted earnings of $3.46 per share for 2025 and $1.12 per share for the fourth quarter, driven by 6% annual growth in private education loan...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.