NasdaqGS:SLM

Stock Analysis Report

Executive Summary

SLM Corporation, through its subsidiaries, operates as a saving, planning, and paying for college company in the United States.

Snowflake

Fundamentals

Undervalued with acceptable track record.


Similar Companies

Share Price & News

How has SLM's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.1%

SLM

4.9%

US Consumer Finance

3.4%

US Market


1 Year Return

-17.2%

SLM

5.5%

US Consumer Finance

5.4%

US Market

Return vs Industry: SLM underperformed the US Consumer Finance industry which returned 5.5% over the past year.

Return vs Market: SLM underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

SLMIndustryMarket
7 Day7.1%4.9%3.4%
30 Day-7.6%-3.8%-1.0%
90 Day-9.6%-6.0%-0.4%
1 Year-16.5%-17.2%7.4%5.5%7.7%5.4%
3 Year22.6%21.4%62.5%54.6%46.2%36.8%
5 Year-0.4%-1.3%41.9%31.5%65.6%47.5%

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

Valuation

Is SLM undervalued compared to its fair value and its price relative to the market?

47.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SLM ($8.78) is trading below our estimate of fair value ($16.56)

Significantly Undervalued: SLM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SLM is good value based on its PE Ratio (7x) compared to the Consumer Finance industry average (8.3x).

PE vs Market: SLM is good value based on its PE Ratio (7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SLM is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: SLM is overvalued based on its PB Ratio (1.4x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is SLM forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLM's forecast earnings growth (8.6% per year) is above the savings rate (2.7%).

Earnings vs Market: SLM's earnings (8.6% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: SLM's earnings are forecast to grow, but not significantly.

Revenue vs Market: SLM's revenue (12.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: SLM's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SLM's Return on Equity is forecast to be low in 3 years time (19.2%).


Next Steps

Past Performance

How has SLM performed over the past 5 years?

20.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SLM's earnings have grown significantly by 20.1% per year over the past 5 years.

Accelerating Growth: SLM's earnings growth over the past year (56.9%) exceeds its 5-year average (20.1% per year).

Earnings vs Industry: SLM earnings growth over the past year (56.9%) exceeded the Consumer Finance industry 25.5%.


Return on Equity

High ROE: SLM's Return on Equity (18.1%) is considered low.


Return on Assets

ROA vs Industry: SLM's Return on Assets is below or equal to the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SLM's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is SLM's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SLM has a low level of unsold assets or inventory.

Debt Coverage by Assets: SLM's debt is covered by short term assets (assets are 5.965380x debt).


Financial Institutions Analysis

Asset Level: SLM's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SLM has a sufficient allowance for bad loans.

Low Risk Liabilities: SLM reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SLM has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SLM has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SLM has an appropriate level of bad loans.


Next Steps

Dividend

What is SLM's current dividend yield, its reliability and sustainability?

1.37%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.5%markettop25%3.8%industryaverage1.9%forecastin3Years1.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SLM's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SLM's dividend (1.37%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: Too early to tell whether SLM's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SLM's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (4.8%), SLM's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SLM's dividends in 3 years are forecast to be thoroughly covered by earnings (10.9% payout ratio).


Next Steps

Management

What is the CEO of SLM's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Ray Quinlan (67yo)

5.5yrs

Tenure

US$6,187,641

Compensation

Mr. Raymond J. Quinlan, also known as Ray, has been the Executive Chairman and Chief Executive Officer of SLM Corporation since April 29, 2014. Mr. Quinlan has 40+ years of tradition with the challenge, mo ...


CEO Compensation Analysis

Compensation vs. Market: Ray's total compensation ($USD6.19M) is about average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Ray's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.3yrs

Average Tenure

59yo

Average Age

Experienced Management: SLM's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

68yo

Average Age

Experienced Board: SLM's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$523,29004 Mar 19
Jeffrey Dale
EntityIndividual
Role
Senior Key Executive
Chief Risk Officer & Senior VP
Shares46,762
Max PriceUS$11.19
SellUS$761,34204 Mar 19
Jonathan Boyles
EntityIndividual
Shares68,000
Max PriceUS$11.20
SellUS$277,50001 Mar 19
Paul Thome
EntityIndividual
Role
Chief Administrative Officer
Executive VP & Chief Administrative Officer
Shares25,000
Max PriceUS$11.10

Ownership Breakdown


Management Team

  • Steve McGarry (61yo)

    Executive VP & CFO

    • Tenure: 5.4yrs
    • Compensation: US$2.13m
  • Tim Morrison

    Senior Vice President of Government Relations

    • Tenure: 0yrs
  • Ray Quinlan (67yo)

    Executive Chairman & CEO

    • Tenure: 5.5yrs
    • Compensation: US$6.19m
  • Martha Holler

    Senior Vice President of Corporate Marketing & Communications

    • Tenure: 0yrs
  • Jim Truitt

    Chief Compliance Officer and Senior Vice President

    • Tenure: 11.3yrs
  • Paul Thome (68yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 3.7yrs
    • Compensation: US$1.66m
  • Jeffrey Dale (57yo)

    Chief Risk Officer & Senior VP

    • Tenure: 5.3yrs
    • Compensation: US$1.38m
  • Brian Cronin

    Senior Director of Investor Relations

    • Tenure: 0yrs
  • Nic Jafarieh (44yo)

    Senior VP & General Counsel

    • Tenure: 1.6yrs
    • Compensation: US$1.38m
  • Donna Vieira (54yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 0.8yrs

Board Members

  • Bill Shiebler (77yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$195.00k
  • Earl Goode (78yo)

    Independent Director

    • Tenure: 19.3yrs
    • Compensation: US$190.00k
  • Marianne Keler (64yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$190.01k
  • Ray Quinlan (67yo)

    Executive Chairman & CEO

    • Tenure: 5.5yrs
    • Compensation: US$6.19m
  • Vivian Schneck-Last (58yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$185.01k
  • Frank Puleo (74yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$195.01k
  • Paul Child (70yo)

    Lead Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$205.01k
  • Mary Carter Franke (62yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$185.01k
  • Robert Strong (69yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$180.01k
  • Jim Matheson (59yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$180.01k

Company Information

SLM Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SLM Corporation
  • Ticker: SLM
  • Exchange: NasdaqGS
  • Founded: 1972
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$3.746b
  • Shares outstanding: 426.59m
  • Website: https://www.salliemae.com

Number of Employees


Location

  • SLM Corporation
  • 300 Continental Drive
  • Newark
  • Delaware
  • 19713
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SLMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2014
SLMB.PNasdaqGS (Nasdaq Global Select)PFD SER B USUSDMay 2014
SM1DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2014

Biography

SLM Corporation, through its subsidiaries, operates as a saving, planning, and paying for college company in the United States. The company originates and services private education loans to students or th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:11
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.