SLM (SM1) AI Stock Analysis

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SLM

(XETRA:SM1)

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Positive Factors

Origination growth and funding partnershipsRecord origination growth demonstrates continued demand for SLM’s private education lending and expands the asset base that generates interest income. The Sixth Street commitment adds recurring funding capacity and can support scalable servicing and program-management revenue over the next several quarters.

Negative Factors

Rising credit losses and delinquenciesHigher charge-off guidance and worsening delinquency indicate increasing pressure on private student-loan credit performance. Elevated losses can require larger provisions, reduce earnings conversion, and constrain capital available for growth even if origination volumes remain strong.

SLM (SM1) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 3.18B
Dividend Yield: 2.79%
Average Volume (3M): 144
Price to Earnings (P/E): 6.1
Beta (1Y): 0.64
Revenue Growth: -11.02%
EPS Growth: -10.14%
Country: Germany
Employees: 1,788
Sector: Financial
Sector Strength: 68
Industry: Financial - Credit Services

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 savings a...

SLM Earnings Call Summary

Earnings Call Date:Oct 22, 2026(Q3-2026)|% Change Since:-24.26%|Next Earnings Date:Jan 27, 2027

Earnings Call SentimentPositive

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.

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 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

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:SM1 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TREE	75Outperform	$496.46M	5.03	34.02%	―	23.11%	603.54%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NNI	63Neutral	$4.51B	16.82	7.26%	1.04%	-9.30%	-36.58%
SOFI	62Neutral	$21.25B	28.05	6.76%	―	37.62%	0.62%
UPST	58Neutral	$2.02B	31.09	8.10%	―	38.56%	100.99%
NAVI	50Neutral	$626.50M	10.96	2.16%	10.81%	-10.96%	―

* Financial Sector Average

Performance Comparison

DE:SM1 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:SM1	Slm Corporation	15.30	-8.37	-35.36%
NNI	Nelnet	126.46	-2.63	-2.04%
TREE	Lendingtree Inc	36.84	-13.85	-27.32%
NAVI	Navient Corporation	5.92	-5.46	-47.97%
UPST	Upstart Holdings, Inc.	20.56	-16.73	-44.86%
SOFI	Sofi Technologies Inc	16.27	-12.12	-42.69%

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.

SLM AI Stock Analysis