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.
Undervalued second-rate dividend payer.
Share Price & News
How has SLM's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SM1's share price has been volatile over the past 3 months.
7 Day Return
DE Consumer Finance
1 Year Return
DE Consumer Finance
Return vs Industry: SM1 exceeded the German Consumer Finance industry which returned -27.3% over the past year.
Return vs Market: SM1 underperformed the German Market which returned 8.1% over the past year.
Price Volatility Vs. Market
How volatile is SLM's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is SLM undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SM1 (€5.7) is trading below our estimate of fair value (€9.46)
Significantly Below Fair Value: SM1 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SM1 is good value based on its PE Ratio (5.4x) compared to the XE Consumer Finance industry average (6.7x).
PE vs Market: SM1 is good value based on its PE Ratio (5.4x) compared to the German market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: SM1 is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: SM1 is overvalued based on its PB Ratio (1.6x) compared to the XE Consumer Finance industry average (0.9x).
How is SLM forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SM1's forecast earnings growth (7.8% per year) is above the savings rate (0.2%).
Earnings vs Market: SM1's earnings (7.8% per year) are forecast to grow slower than the German market (24% per year).
High Growth Earnings: SM1's earnings are forecast to grow, but not significantly.
Revenue vs Market: SM1's revenue (1.1% per year) is forecast to grow slower than the German market (5.8% per year).
High Growth Revenue: SM1's revenue (1.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SM1's Return on Equity is forecast to be high in 3 years time (22.9%)
How has SLM performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SM1 has a high level of non-cash earnings.
Growing Profit Margin: SM1's current net profit margins (41.4%) are lower than last year (44.6%).
Past Earnings Growth Analysis
Earnings Trend: SM1's earnings have grown significantly by 24.6% per year over the past 5 years.
Accelerating Growth: SM1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SM1 had negative earnings growth (-1.9%) over the past year, making it difficult to compare to the Consumer Finance industry average (3.1%).
Return on Equity
High ROE: Whilst SM1's Return on Equity (27.11%) is high, this metric is skewed due to their high level of debt.
How is SLM's financial position?
Financial Position Analysis
Short Term Liabilities: SM1's short term assets ($28.1B) exceed its short term liabilities ($23.6B).
Long Term Liabilities: SM1's short term assets ($28.1B) exceed its long term liabilities ($4.8B).
Debt to Equity History and Analysis
Debt Level: SM1's debt to equity ratio (220.6%) is considered high.
Reducing Debt: SM1's debt to equity ratio has increased from 2.2% to 220.6% over the past 5 years.
Debt Coverage: SM1's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if SM1's interest payments on its debt are well covered by EBIT.
What is SLM current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: SM1's dividend (1.72%) is higher than the bottom 25% of dividend payers in the German market (1.23%).
High Dividend: SM1's dividend (1.72%) is low compared to the top 25% of dividend payers in the German market (3.78%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, SM1 has been paying a dividend for less than 10 years.
Growing Dividend: SM1 has only been paying a dividend for 2 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (9.2%), SM1's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SM1's dividends in 3 years are forecast to be thoroughly covered by earnings (8.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jon Witter (50 yo)
Mr. Jonathan W. Witter, also known as Jon, serves as Chief Executive Officer & Director at SLM Corporation since April 20, 2020. He is the Executive Vice President and Chief Customer Officer of Hilton Dome ...
|Executive VP & CFO||6.25yrs||US$1.96m||0.059% |
|Executive VP & Chief Administrative Officer||4.5yrs||US$1.61m||0.036% |
|Senior VP & General Counsel||2.42yrs||US$1.33m||0.024% |
|Executive VP & Chief Marketing Officer||1.58yrs||US$2.12m||0.0025% |
|CEO & Director||0.33yr||no data||no data|
|Senior Director of Investor Relations||no data||no data||no data|
|Chief Compliance Officer and Senior Vice President||12.08yrs||no data||no data|
|Senior Vice President of Corporate Marketing & Communications||no data||no data||no data|
|Senior Vice President of Government Relations||no data||no data||no data|
|Executive Vice President of Administration||8.42yrs||no data||no data|
|Executive Vice President||no data||no data||no data|
|Chief Risk Officer & Senior VP||6.08yrs||US$1.38m||0.0092% |
Experienced Management: SM1's management team is seasoned and experienced (5.3 years average tenure).
|CEO & Director||0.33yr||no data||no data|
|Independent Director||6.33yrs||US$205.01k||0.021% |
|Independent Director||20.08yrs||US$200.01k||0.038% |
|Independent Director||6.33yrs||US$202.52k||0.027% |
|Independent Director||1.33yrs||US$165.02k||0.0064% |
|Independent Director||5.42yrs||US$195.02k||0.015% |
|Independent Director||12.42yrs||US$205.01k||0.041% |
|Independent Director||3.75yrs||US$190.02k||0.010% |
|Lead Independent Director||6.58yrs||US$222.51k||0.018% |
|Chair of the Board||0.17yr||US$195.02k||0.017% |
|Independent Director||6.33yrs||US$195.01k||0.022% |
|Independent Director||5.42yrs||US$190.02k||0.016% |
Experienced Board: SM1's board of directors are considered experienced (5.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
SLM Corporation's company bio, employee growth, exchange listings and data sources
- Name: SLM Corporation
- Ticker: SM1
- Exchange: DB
- Founded: 1972
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: US$2.627b
- Listing Market Cap: US$2.228b
- Shares outstanding: 375.24m
- Website: https://www.salliemae.com
Number of Employees
- SLM Corporation
- 300 Continental Drive
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SLM||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||May 2014|
|SLMB.P||NasdaqGS (Nasdaq Global Select)||PFD SER B||US||USD||May 2014|
|SM1||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||May 2014|
|SLM *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||May 2014|
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 ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/08/09 20:54|
|End of Day Share Price||2020/08/07 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.