SLM FCF Yield Analysis
Updated 83h ago·SEC filings & market data
Key Takeaway
An FCF yield of -8.0% means SLM’s free cash flow—the cash left after operating costs and capital spending—is negative relative to its market value, indicating the company is consuming rather than generating cash on this basis.
Sector Performance
7th percentileSLM
-8.0%
Sector Median
4.2%
Sector Avg
9.3%
Prior Period
-7.9%(Aug 2026)
Deep Analysis
An FCF yield of -8.0% means SLM’s free cash flow—the cash left after operating costs and capital spending—is negative relative to its market value, indicating the company is consuming rather than generating cash on this basis.
That figure sits far below the sector median of 4.2%, placing SLM in the 6th percentile among peers, so nearly all comparable firms offer a more attractive cash return. The trend is stable: year-over-year the yield improved by +4.8 percentage points, while quarter-over-quarter it dipped by -1.3 percentage points, with recent values hovering around -8%. The combination of a persistently negative level and a stable trend signals continued cash-generation weakness, which adds risk for investors seeking income or value from cash flows, though the small YoY improvement hints at slight easing. This negative FCF yield does not support a bullish view; it instead contradicts the overall NEUTRAL verdict on the stock, as such a low percentile rank and negative level typically warrant caution.
Frequently Asked Questions
What does the FCF Yield tell investors about SLM?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are SLM's closest peers by FCF Yield?
The closest peers by FCF Yield include: RARE (-18.7%), CG (-19.3%), RXRX (-20.3%), PLUG (-22.0%), NTLA (-22.5%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master SLM's Valuation
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-8.0%
Sector Median
4.2%
Sector Avg
9.3%
How SLM's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.