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SLM
(NASDAQ:SLM)
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Rating:58Neutral
Price Target:
$20.00
▼(-24.27% Downside)
Action:Reiterated
Date:10/24/26
The score is driven primarily by mixed financial quality—good profitability/ROE but weaker recent revenue momentum, leverage, and historically inconsistent cash conversion. Technicals are a notable drag with the stock in a clear downtrend and weak momentum indicators. Valuation is a clear positive (low P/E and dividend), while the latest earnings call was moderately positive on growth and funding partnerships but tempered by higher credit losses/expenses and reduced EPS guidance.
Positive Factors
Origination Growth
Record origination volume demonstrates sustained demand for SLM’s private education lending franchise and supports future interest income, servicing revenue, and scale benefits. Continued double-digit guidance indicates management expects the platform’s growth trajectory to remain durable over the coming quarters.
Negative Factors
Higher Credit Losses
The higher charge-off outlook indicates that credit costs are becoming a more material drag on earnings, particularly as the portfolio expands. Persistent borrower stress or weaker recoveries could require elevated provisions and reduce the benefit of otherwise strong origination growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Origination Growth
Record origination volume demonstrates sustained demand for SLM’s private education lending franchise and supports future interest income, servicing revenue, and scale benefits. Continued double-digit guidance indicates management expects the platform’s growth trajectory to remain durable over the coming quarters.
Read all positive factors
SLM (SLM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.55B
Dividend Yield2.68%
Average Volume (3M)2.62M
Price to Earnings (P/E)7.0
Beta (1Y)0.89
Revenue Growth-6.24%
EPS Growth-3.47%
CountryUS
Employees1,788
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)2.79
Shares Outstanding182,821,170
10 Day Avg. Volume3,235,764
30 Day Avg. Volume2,618,203
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)2.29
Price to Sales (P/S)1.80
P/FCF Ratio9.74
Enterprise Value/Market Cap1.95
Enterprise Value/Revenue2.39
Enterprise Value/Gross Profit4.67
Enterprise Value/Ebitda6.71
Forecast
1Y Price Target
$24.29Price Target Upside-8.04% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.12
Revenue Forecast (FY)$1.92B
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 provides retail deposit accounts, including high-yield saving...
How the Company Makes Money
SLM makes money primarily through net interest income earned on its education loan portfolio and through related fees tied to loan activity. A core revenue stream is the interest spread: SLM funds lending through deposits and other borrowings, the...
SLM Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2027
Earnings Call Sentiment Positive
The call was predominantly positive, supported by record origination volume, 119% growth in graduate originations, the addition of a second strategic funding partner, improving early loss-mitigation indicators, continued share repurchases and solid capital and liquidity. The main negatives were higher charge-off guidance, elevated delinquency and credit provisions, higher operating expenses, peak-season delays and the decision to defer a planned loan sale that reduced 2026 EPS guidance. Management nevertheless expressed confidence in future origination growth, expense management, recovery performance and the flexibility of its funding strategy.Positive Updates
Record Origination Volume
Third-quarter loan originations were $3.4 billion, representing 15% growth over the year-ago quarter and the highest quarterly origination volume in Sallie Mae's history. Management expects stronger-than-normal volume to continue into the fourth quarter and reaffirmed full-year origination growth guidance of 12% to 14%.
Negative Updates
Private Education Loan Charge-Offs Above Expectations
Third-quarter private education loan net charge-offs were $90 million, modestly above expectations. The increase was concentrated among borrowers affected by the previously discussed third-party debt resolution practices.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Origination Volume
Third-quarter loan originations were $3.4 billion, representing 15% growth over the year-ago quarter and the highest quarterly origination volume in Sallie Mae's history. Management expects stronger-than-normal volume to continue into the fourth quarter and reaffirmed full-year origination growth guidance of 12% to 14%.
Read all positive updates
Company Guidance
Sallie Mae expects full year originations to be in line with guidance of 12% to 14% growth, full year net charge offs of $400 million to $420 million with a midpoint $45 million higher than that of our original range, and full year 2026 EPS of $1.95 to $2.05 a share; the company reaffirmed its non interest expense and origination guidance, expects to land within its non interest expense guidance range for the year, and said non-interest expense will now be closer to the high end of the range. The company expects to exhaust most of its current share repurchase authorization before the end of the year, believes meaningful loan sales will be a part of its 2027 plan and beyond, and said its base case for next year is flat balance sheet to maybe single digit growth of the balance sheet, with premiums that are above sort of a minimum threshold level.SLM Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
58
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.89B | 3.11B | 2.99B | 2.84B | 2.37B | 2.41B |
| Gross Profit | 1.48B | 1.65B | 1.44B | 1.46B | 1.19B | 2.06B |
| EBITDA | 1.03B | 1.01B | 816.29M | 862.47M | 655.84M | 1.56B |
| Net Income | 567.40M | 744.85M | 608.33M | 581.39M | 469.01M | 1.16B |
Balance Sheet | ||||||
| Total Assets | 29.84B | 29.75B | 30.07B | 29.17B | 28.81B | 29.22B |
| Cash, Cash Equivalents and Short-Term Investments | 5.05B | 4.29B | 6.69B | 6.56B | 6.96B | 6.85B |
| Total Debt | 6.43B | 5.86B | 6.44B | 5.23B | 5.24B | 5.93B |
| Total Liabilities | 27.59B | 27.29B | 27.91B | 27.29B | 27.08B | 27.07B |
| Stockholders Equity | 2.26B | 2.45B | 2.16B | 1.88B | 1.73B | 2.15B |
Cash Flow | ||||||
| Free Cash Flow | 595.89M | 575.52M | -329.39M | -144.64M | 4.99M | -49.52M |
| Operating Cash Flow | 595.89M | 575.52M | -329.39M | -144.64M | 4.99M | -49.52M |
| Investing Cash Flow | -1.63B | 0.00 | 675.99M | -12.46M | 1.08B | 2.60B |
| Financing Cash Flow | 266.56M | -500.21M | 228.16M | -316.23M | -854.89M | -2.62B |
SLM Technical Analysis
Negative
26.41
Price Trends
24.44
Negative
24.57
Negative
23.57
Negative
Market Momentum
-0.87
Positive
25.17
Positive
32.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLM, the sentiment is Negative. The current price of 26.41 is above the 20-day moving average (MA) of 22.33, above the 50-day MA of 24.44, and above the 200-day MA of 23.57, indicating a bearish trend. The MACD of -0.87 indicates Positive momentum. The RSI at 25.17 is Positive, neither overbought nor oversold. The STOCH value of 32.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $4.39B | 14.72 | 8.15% | 1.08% | -6.77% | -7.42% | |
66 Neutral | $376.40M | 2.03 | 69.56% | 6.18% | 25.29% | ― | |
65 Neutral | $18.88B | 28.66 | 6.18% | ― | 34.08% | -0.29% | |
58 Neutral | $3.55B | 6.96 | 23.59% | 2.68% | -6.24% | -3.47% | |
55 Neutral | $2.31B | 38.27 | 7.85% | ― | 46.30% | ― | |
49 Neutral | $797.16M | -17.35 | -2.04% | 7.53% | -17.19% | -244.62% |
* Financial Sector Average
SLM
SLM
19.42
-8.42
-30.24%
NNI
Nelnet
122.59
-7.45
-5.73%
TREE
Lendingtree
26.81
-34.64
-56.37%
NAVI
Navient
8.50
-3.55
-29.46%
UPST
Upstart Holdings
23.78
-28.96
-54.91%
SOFI
SoFi
14.62
-15.39
-51.28%
SLM Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
SLM Highlights Q2 2026 Results and Capital Actions
Positive
Aug 5, 2026
On or about August 5, 2026, SLM Corporation posted its second-quarter 2026 investor presentation, current as of July 23, 2026, outlining performance for the quarter ended June 30, 2026. The materials highlight Sallie Mae’s strong franchise i...
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.