SLM (SLM) AI Stock Analysis

• Market Cap: $5.43B
• Dividend Yield: 1.95%
• Average Volume (3M): 3.16M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.94
• Revenue Growth: 0.59%
• EPS Growth: -1.11%
• Country: US
• Employees: 1,710
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.63
• Shares Outstanding: 203,038,650
• 10 Day Avg. Volume: 2,375,735
• 30 Day Avg. Volume: 3,156,148
• PEG Ratio: 0.82
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 2.00
• P/FCF Ratio: -18.10
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 3.21
• Enterprise Value/Gross Profit: 4.63
• Enterprise Value/Ebitda: 8.52
• 1Y Price Target: $33.44
• Price Target Upside: 24.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 3.21
• Revenue Forecast (FY): $1.95B

• Rating: 64 Neutral
• Price Target: $29.00 ▲(8.37% Upside)

SLM's overall stock score is driven by strong financial performance and positive earnings call highlights, tempered by high leverage, negative cash flows, and technical indicators suggesting bearish momentum. The valuation indicates potential undervaluation, but economic uncertainties and rising delinquencies remain concerns.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust demand for SLM's financial products, supporting long-term business expansion and market presence.

Improved Credit Quality

Enhanced credit quality reduces default risk, potentially leading to more stable cash flows and improved profitability over time.

Successful Loan Sale

The successful loan sale boosts liquidity and capital reserves, enabling SLM to reinvest in growth opportunities and enhance shareholder value.

Negative Factors

High Leverage

High leverage can increase financial risk, especially in volatile markets, potentially impacting SLM's ability to navigate economic downturns.

Negative Cash Flows

Negative cash flows may limit SLM's operational flexibility and investment capacity, posing challenges to sustaining long-term growth.

Rising Delinquencies

Increasing delinquencies could lead to higher credit losses, impacting profitability and necessitating stricter credit controls.

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 of deposit, money market deposit accounts, and high-yield savings accounts; and omnibus accounts, as well as credit card loans. It serves students and families through financial aid, federal loans, and student and family resources. 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.

How the Company Makes Money

SLM generates revenue primarily through the interest on private student loans, which are issued to students and parents to cover education-related expenses. The company also earns income from loan servicing fees, where it manages the repayment process for education loans. Additionally, SLM profits from ancillary services such as financial literacy resources and educational planning tools offered to students and families. Significant partnerships with educational institutions and financial organizations enhance SLM's reach in the student loan market, creating opportunities for cross-selling products and services. Overall, the combination of interest income, servicing fees, and strategic partnerships constitutes the key revenue streams for SLM.

SLM Financial Statement Overview

Summary

SLM shows strong revenue growth and profitability with a healthy gross profit margin. However, high leverage and negative cash flows pose significant risks, necessitating improvements in cash flow management for long-term stability.

Income Statement

SLM has shown strong revenue growth in the TTM period with a 17.3% increase, indicating a positive trajectory. The gross profit margin is healthy at 69.28%, and the net profit margin is solid at 21.75%. However, the EBIT and EBITDA margins have seen fluctuations, with the TTM EBIT margin at 37.09% and EBITDA margin at 37.61%, reflecting some operational challenges.

Balance Sheet

The company's debt-to-equity ratio is high at 2.92, indicating significant leverage, which could pose risks in volatile markets. Return on equity is strong at 26.87%, showing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

SLM's cash flow position is concerning, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is zero, indicating potential liquidity issues. However, the free cash flow to net income ratio remains stable at 1.0.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.87B	2.99B	2.89B	2.37B	2.37B	2.29B
Gross Profit	1.99B	1.44B	1.46B	1.19B	2.06B	1.72B
EBITDA	1.08B	816.29M	796.11M	833.36M	1.56B	1.32B
Net Income	623.22M	608.33M	581.39M	469.01M	1.16B	880.69M
Balance Sheet
Total Assets	29.61B	30.07B	29.17B	28.81B	29.22B	30.77B
Cash, Cash Equivalents and Short-Term Investments	3.54B	4.70B	4.15B	6.96B	4.55B	6.45B
Total Debt	6.84B	6.44B	5.23B	5.24B	5.93B	5.19B
Total Liabilities	27.26B	27.91B	27.29B	27.08B	27.07B	28.21B
Stockholders Equity	2.34B	2.16B	1.88B	1.73B	2.15B	2.56B
Cash Flow
Free Cash Flow	-333.01M	-329.39M	-144.64M	4.99M	-49.52M	2.15B
Operating Cash Flow	-333.01M	-329.39M	-144.64M	4.99M	-49.52M	-182.67M
Investing Cash Flow	479.26M	675.99M	-12.46M	1.08B	2.60B	947.33M
Financing Cash Flow	-1.08B	228.16M	-316.23M	-854.89M	-2.62B	-1.88B

SLM Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 26.76 is below the 20-day moving average (MA) of 26.78, below the 50-day MA of 27.80, and below the 200-day MA of 29.86, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 25.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLM.

SLM Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMF	77 Outperform	$7.09B	10.22	21.41%	7.46%	9.51%	29.38%
NNI	74 Outperform	$4.70B	14.64	9.42%	0.88%	9.14%	291.99%
LC	69 Neutral	$2.09B	20.43	7.40%	―	9.68%	94.85%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SLM	64 Neutral	$5.43B	9.43	27.85%	1.95%	0.59%	-1.11%
CACC	60 Neutral	$4.74B	11.38	28.14%	―	10.30%	154.64%
NAVI	44 Neutral	$1.14B	―	-1.95%	5.46%	-25.22%	-174.34%

SLM Corporate Events

Sallie Mae’s Earnings Call: Growth Amid Challenges

In the latest earnings call, SLM Corporation, commonly known as Sallie Mae, presented a balanced outlook. The company reported strong loan origination growth and improved credit quality, alongside successful financial strategies. However, these positive developments were tempered by rising delinquencies and ongoing economic uncertainties. Despite these challenges, Sallie Mae expressed optimism about its future growth prospects and strategic partnerships.

Sallie Mae Reports Strong Q3 2025 Results

Sallie Mae, formally known as SLM Corporation, is a leading private student lending company that provides financing solutions and resources to support access to higher education and lifelong learning. The company operates in the financial services sector, focusing on private education loans and related products.

SLM Announces Retention Agreement with Donna F. Vieira

On September 29, 2025, SLM Corporation announced a retention agreement with Donna F. Vieira, its Executive Vice President and Chief Commercial Officer. Under this agreement, Vieira will remain in her current role until the hiring of a new Chief Commercial Officer or until December 31, 2025, and as an employee until April 3, 2026. She will receive a $750,000 retention bonus, contingent on her continued performance and assistance in transitioning her duties. The agreement includes a release of claims by Vieira and certain restrictive covenants. If Vieira resigns or is terminated for cause before the separation date, she will forfeit the bonus. Vieira will not receive severance benefits but will be treated as retirement-eligible for compensation and benefits plans.

The most recent analyst rating on (SLM) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on SLM stock, see the SLM Stock Forecast page.

SLM Faces Impact from Federal Loan Reforms

SLM Corporation reported its financial results for the second quarter of 2025, highlighting a GAAP net income of $67 million and a net interest margin of 5.31%. The company experienced a slight decrease in private education loan originations compared to the previous year, with $686 million in Q2 2025. Additionally, the company faced an increase in provisions for credit losses due to macroeconomic factors and loan sale timing. The recent federal student loan reforms signed into law on July 4, 2025, are expected to impact the market by setting limits on parent and graduate lending, which may influence Sallie Mae’s operations and market strategy moving forward.

The most recent analyst rating on (SLM) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on SLM stock, see the SLM Stock Forecast page.

SLM Reports Q2 2025 Financial Performance Highlights

On August 11, 2025, SLM Corporation released two presentations on its website detailing its financial performance for the quarter ended June 30, 2025. The company reported a GAAP net income of $67 million and a diluted earnings per share of $0.32 for Q2 2025. Despite a slight decrease in private education loan originations compared to the previous year, SLM maintained a strong return on common equity of 12.6%. The company also highlighted its robust capital allocation strategy, including share repurchases and dividend payments, which are aimed at enhancing shareholder value. Additionally, SLM successfully settled its first student loan ABS transaction of the year, demonstrating strong investor demand despite market volatility.

The most recent analyst rating on (SLM) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on SLM stock, see the SLM Stock Forecast page.