SLM CorporationSLM
NASDAQ • Financial Services
$21.18
P/E
5.80
PEG
5.28
FCF Yield
—
Rev Growth YoY
-3.3% YoY
Gross Margin
68.5%
Health Score
6/10
D/E Ratio
2.39
Confidence
LOW
Business Snapshot
SLM Corporation is a financial services company primarily focused on originating and servicing private student loans in the United States. It operates in the consumer credit market and is one of the largest private student lenders, leveraging long-standing relationships with schools and borrowers. The company generates $3.08 billion in trailing twelve-month revenue, placing it in the mid-cap revenue tier, though its market capitalisation is not specified in this dataset. A defining characteristic is its high gross margin of 68.5%, reflecting strong pricing power and an asset-light origination model, yet it carries substantial debt leverage.
Financial Health
Gross margin improved to 68.5% from 64.4% a year earlier, while net margin stood at 19.7%, indicating solid and improving profitability. However, the balance sheet is stretched: the debt/equity ratio of 2.39x signals high leverage, and the current ratio of 0.28x points to significant liquidity risk, as current assets cover less than one-third of current liabilities...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 2.39x indicates high leverage, and a current ratio of 0.28x reflects severe short-term liquidity risk, as current assets cover less than one-third of current liabilities.
- REVENUE DECELERATION — Revenue declined 3.3% year-over-year, indicating a contraction in the core business that may pressure future earnings if not reversed.
- 52-WEEK POSITION — The current price of $21.18 is below the midpoint of the 52-week range (high $34.97, low $17.77, midpoint $26.37), trading closer to the low and still 39% below the high.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — The Python DCF could not be calculated, while the FMP DCF suggests a 38.7% discount; the lack of consensus between models increases valuation uncertainty.
- EARNINGS QUALITY — While 4/4 quarters beat estimates, the 1.1% earnings growth is modest and revenue is declining, raising questions about the sustainability of earnings beats....