Stock analysis · Bull Rankings model

SLM analysis

SLM CorporationCredit Services. Scored on the same transparent 7-signal model behind the daily rankings.

SLM
SLM Corporation · Credit Services
FCF-$328mF
Rev+7.3%B
D/E2.53C
P/S2.9xB+
PEG0.51A-
72.2Financial strength
$25.34$4.8B
1Y Target$28.64Analyst consensus · 11 analysts
5Y Target$50.09Compound horizon
10Y Target$127.02Long-dated conviction
FCF-$328mTTM · 03/26
F
FCF is negative (-$328m) — cash-burning phase; acceptable only for pre-profit spec names · TTM computed from 4 most-recent quarters (TTM · 03/26).
Rev+7.3%FY YoY
B
Revenue +7.3% — at or above S&P median · Computed from last two annual revenue figures (FY YoY).
D/E2.53
C
D/E 2.53 — more levered than most Financial Services peers (≈90th pctile)
P/S2.9x
B+
P/S 2.9x — below the Financial Services median (≈40th pctile)
PEG0.51
A-
PEG 0.51 — strong; Lynch's preferred zone

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Financial strength · 72.2 / 100
Profitability1.00
Value (P/B)0.44
Income0.56

A peer-relative read for financials on profitability (ROE), valuation, and covered income — the quality-growth (FCF/ROIC) screen doesn't apply to balance-sheet businesses. Not comparable to the 0–100 quality-growth score shown on other stocks.

Entry · Margin of safety
52-week rangeMid-range
24% off the 12-month high
Why now
Credit Services · market cap $4.8b. Down 24% from 52-week high of $33.50 — deep drawdown territory. PEG 0.51 — paying under fair value for the growth rate. 11 sell-side analysts rate this a Buy with a mean 1-yr target of $28.64 (implying +13% upside).
Moat
Net margin 45% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 31% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which.
Risk
D/E 2.53 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Free cash flow is negative (-$328m) — capital raises or debt issuance likely required; dilution / leverage risk. Balance-sheet financial — book value, net interest margin, and credit loss provisions are the lever points; a rates regime change or a deterioration in the loan book moves the stock more than EPS does.
Horizon
1-3 yr $28.64 (11-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $50.09 — requires the platform / technology to reach commercial scale. 10 yr $127.02 — return distribution heavily skewed.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

Not enough history yet — the model records SLM's score after each daily run, and the chart appears once a few days have accumulated.

Shares to buy
78
Position size
$1,977
4.0% of portfolio
Stop price
$19.00
25% below $25.34
$ at risk if stopped
$494.13
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

SLM Corporation (SLM): score, valuation & FAQ

SLM Corporation (SLM) is a Credit Services company. As a bank, insurer or REIT it runs on a different financial model from the rest of the market, so Bull Rankings grades it on a sector-appropriate card — price-to-book, dividend yield, payout ratio and cash-flow coverage — rather than the 0–100 quality-growth score used elsewhere. The read below is a transparent screen, not a buy recommendation.

Its strongest graded signals are PEG (A-) and P/S (B+), while FCF (F) rate weaker.

Is SLM a good stock to buy?

Bull Rankings grades SLM on a sector-appropriate card — price-to-book, dividend yield, payout and cash-flow coverage — rather than a single quality-growth score. That is driven by PEG (A-) and P/S (B+). A score is a quantitative screen of SLM Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

How does Bull Rankings grade SLM?

As a bank, insurer or REIT, SLM isn't given a quality-growth score — signals like free cash flow, debt-to-equity and P/E don't translate cleanly to a balance-sheet business. Instead it's graded on a sector-appropriate card: price-to-book, dividend yield, payout ratio and operating-cash-flow coverage, where it rates strongest on PEG (A-) and P/S (B+) and weakest on FCF (F).

Is SLM overvalued or undervalued?

We don't compute a reliable discounted-cash-flow value for SLM — typically because it is not yet consistently profitable or free-cash-flow positive — so its valuation rests on growth and price-to-sales rather than on earnings-based intrinsic value. Judge it on the trajectory of the business, not a single multiple.

What are the main risks of investing in SLM?

D/E 2.53 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Free cash flow is negative (-$328m) — capital raises or debt issuance likely required; dilution / leverage risk. Balance-sheet financial — book value, net interest margin, and credit loss provisions are the lever points; a rates regime change or a deterioration in the loan book moves the stock more than EPS does.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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