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SLM

DB:SM1
Snowflake Description

Undervalued with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SM1
DB
$3B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

SLM Corporation, through its subsidiaries, operates as a saving, planning, and paying for college company in the United States. The last earnings update was 31 days ago. More info.


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  • SLM has significant price volatility in the past 3 months.
SM1 Share Price and Events
7 Day Returns
7.5%
DB:SM1
6%
Europe Consumer Finance
7.3%
DE Market
1 Year Returns
-26.6%
DB:SM1
-48.3%
Europe Consumer Finance
-17.7%
DE Market
SM1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SLM (SM1) 7.5% -29.9% -18.9% -26.6% -42.8% -25.1%
Europe Consumer Finance 6% -34.5% -40.3% -48.3% -64.4% -63.3%
DE Market 7.3% -17.9% -25.8% -17.7% -25.6% -29%
1 Year Return vs Industry and Market
  • SM1 outperformed the Consumer Finance industry which returned -48.3% over the past year.
  • SM1 underperformed the Market in Germany which returned -17.7% over the past year.
Price Volatility
SM1
Industry
5yr Volatility vs Market

SM1 Value

 Is SLM undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SLM to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SLM.

DB:SM1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $7.18 * 27.6%
$1.98
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. $7.18
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:SM1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.586 (1 + (1- 21%) (150.73%))
1.189
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.19
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.189 * 5.44%)
6.08%

Discounted Cash Flow Calculation for DB:SM1 using Excess Returns Model Model

The calculations below outline how an intrinsic value for SLM is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:SM1 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (27.6% – 6.08%) * $7.18)
$1.55
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $1.55 / (6.08% - -0.39%)
$23.92
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $7.18 + $23.92
$31.1
DB:SM1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:SM1 represents 0.88478x of NasdaqGS:SLM
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88478x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 31.10 x 0.88478
€27.52
Value per share (EUR) From above. €27.52
Current discount Discount to share price of €6.45
= -1 x (€6.45 - €27.52) / €27.52
76.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price SLM is available for.
Intrinsic value
>50%
Share price is €6.45 vs Future cash flow value of €27.52
Current Discount Checks
For SLM to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • SLM's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • SLM's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SLM's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SLM's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:SM1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $1.31
NasdaqGS:SLM Share Price ** NasdaqGS (2020-03-30) in USD $7.29
Europe Consumer Finance Industry PE Ratio Median Figure of 27 Publicly-Listed Consumer Finance Companies 5.55x
Germany Market PE Ratio Median Figure of 400 Publicly-Listed Companies 16.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SLM.

DB:SM1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SLM Share Price ÷ EPS (both in USD)

= 7.29 ÷ 1.31

5.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SLM is good value based on earnings compared to the Europe Consumer Finance industry average.
  • SLM is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does SLM's expected growth come at a high price?
Raw Data
DB:SM1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
8.6%per year
Europe Consumer Finance Industry PEG Ratio Median Figure of 19 Publicly-Listed Consumer Finance Companies 0.41x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

DB:SM1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.55x ÷ 8.6%

0.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SLM is good value based on expected growth next year.
Price based on value of assets
What value do investors place on SLM's assets?
Raw Data
DB:SM1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $6.91
NasdaqGS:SLM Share Price * NasdaqGS (2020-03-30) in USD $7.29
Europe Consumer Finance Industry PB Ratio Median Figure of 42 Publicly-Listed Consumer Finance Companies 0.71x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.43x
DB:SM1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SLM Share Price ÷ Book Value per Share (both in USD)

= 7.29 ÷ 6.91

1.05x

* Primary Listing of SLM.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SLM is overvalued based on assets compared to the Europe Consumer Finance industry average.
X
Value checks
We assess SLM's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. SLM has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SM1 Future Performance

 How is SLM expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SLM expected to grow at an attractive rate?
  • SLM's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • SLM's earnings growth is positive but not above the Germany market average.
  • SLM's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:SM1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:SM1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 8.6%
DB:SM1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 8.9%
Europe Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 13%
Europe Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 9.7%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:SM1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:SM1 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31 1,585 673 7
2020-12-31 1,609 714 7
2020-03-30
DB:SM1 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,318 -16 561
2019-09-30 1,338 -88 567
2019-06-30 1,216 -86 543
2019-03-31 1,179 -72 503
2018-12-31 1,116 -103 472
2018-09-30 1,010 -137 372
2018-06-30 1,043 -141 346
2018-03-31 984 -176 307
2017-12-31 941 -171 273
2017-09-30 920 -188 294
2017-06-30 891 -203 272
2017-03-31 852 -162 258

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SLM's earnings are expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).
  • SLM's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:SM1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from SLM Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SM1 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 1.99 1.99 1.99 1.00
2021-12-31 1.99 2.06 1.91 8.00
2020-12-31 1.89 1.93 1.86 8.00
2020-03-30
DB:SM1 Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 1.31
2019-09-30 1.32
2019-06-30 1.25
2019-03-31 1.16
2018-12-31 1.08
2018-09-30 0.86
2018-06-30 0.80
2018-03-31 0.71
2017-12-31 0.63
2017-09-30 0.68
2017-06-30 0.63
2017-03-31 0.60

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SLM is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess SLM's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SLM has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SM1 Past Performance

  How has SLM performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SLM's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SLM has delivered over 20% year on year earnings growth in the past 5 years.
  • SLM's 1-year earnings growth is less than its 5-year average (19% vs 23.6%)
  • SLM's earnings growth has exceeded the Europe Consumer Finance industry average in the past year (19% vs 17.9%).
Earnings and Revenue History
SLM's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SLM Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SM1 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,317.99 561.44 311.08
2019-09-30 1,338.23 567.29 302.38
2019-06-30 1,216.38 542.73 299.98
2019-03-31 1,178.72 502.70 294.38
2018-12-31 1,116.31 471.84 285.13
2018-09-30 1,010.23 372.39 280.02
2018-06-30 1,042.55 345.98 267.31
2018-03-31 984.02 306.71 256.69
2017-12-31 940.55 273.22 242.27
2017-09-30 920.25 294.09 230.00
2017-06-30 891.46 272.40 220.30
2017-03-31 851.56 257.72 211.51
2016-12-31 790.75 229.12 203.21
2016-09-30 808.65 249.24 196.22
2016-06-30 762.05 238.41 196.78
2016-03-31 817.34 272.59 186.51
2015-12-31 795.04 254.69 173.32
2015-09-30 698.11 184.70 166.09
2015-06-30 765.39 221.96 148.15
2015-03-31 674.53 176.71 141.25
2014-12-31 650.23 181.29 135.86
2014-09-30 690.09 226.63 117.11
2014-06-30 614.48 197.94 111.55
2014-03-31 647.82 231.72 108.17
2013-12-31 691.04 258.95 106.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • SLM has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • SLM used its assets less efficiently than the Europe Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if SLM improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess SLM's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SLM has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SM1 Health

 How is SLM's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SLM's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SLM is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SLM's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of SLM's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 6.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SLM Company Filings, last reported 2 months ago.

DB:SM1 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,311.84 4,643.91 5,563.88
2019-09-30 3,183.13 4,900.78 3,851.61
2019-06-30 3,097.32 4,862.76 3,998.93
2019-03-31 3,047.53 4,479.16 2,156.26
2018-12-31 2,972.66 4,284.95 2,559.16
2018-09-30 2,840.34 4,532.34 1,839.98
2018-06-30 2,728.70 4,217.12 2,045.10
2018-03-31 2,609.83 3,744.64 1,435.65
2017-12-31 2,474.26 3,277.04 1,534.34
2017-09-30 2,421.84 3,046.66 1,247.76
2017-06-30 2,337.71 2,883.16 1,318.17
2017-03-31 2,435.36 2,845.03 1,077.58
2016-12-31 2,347.06 2,186.11 1,918.79
2016-09-30 2,259.50 1,966.16 1,484.24
2016-06-30 2,196.91 1,082.75 1,091.86
2016-03-31 2,143.93 1,123.06 976.28
2015-12-31 2,096.32 1,100.50 2,422.26
2015-09-30 1,997.33 1,333.29 1,309.29
2015-06-30 1,962.17 13.75 1,288.09
2015-03-31 1,865.91 27.06 890.03
2014-12-31 1,829.96 24.64 2,360.97
2014-09-30 1,818.43 15.40 1,570.38
2014-06-30 1,738.26 9.46 1,524.18
2014-03-31 1,234.00 8,716.00 1,235.00
2013-12-31 1,166.14 1.17 2,182.87
  • SLM's level of debt (140.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (1.3% vs 140.2% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on SLM's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess SLM's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SLM has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SM1 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.65%
Current annual income from SLM dividends. Estimated to be 2.13% next year.
If you bought €2,000 of SLM shares you are expected to receive €33 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • SLM's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.7%).
  • SLM's dividend is below the markets top 25% of dividend payers in Germany (4.97%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:SM1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Europe Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 6.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 1%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:SM1 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.16 1.00
2021-12-31 0.16 7.00
2020-12-31 0.15 7.00
2020-03-30
DB:SM1 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-01-30 0.120 1.278
2019-11-07 0.120 1.340
2019-06-20 0.120 1.352
2019-04-25 0.120 1.214
2019-01-23 0.120 1.137
2016-02-26 0.000 0.000
2016-01-20 0.000 0.000
2015-10-21 0.000 0.000
2015-07-22 0.000 0.000
2015-04-22 0.000 0.000
2015-02-26 0.000 0.000
2015-01-21 0.000 0.000
2014-10-22 0.000 0.000
2014-07-24 0.000 0.000
2014-05-09 0.600 6.979

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SLM has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • SLM has only been paying a dividend for 6 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of SLM's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (11x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (12.1x coverage).
X
Income/ dividend checks
We assess SLM's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SLM afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SLM has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SM1 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ray Quinlan
COMPENSATION $6,187,641
AGE 67
TENURE AS CEO 5.9 years
CEO Bio

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, motivation and enthusiasm of a new organization. He has extensive background and significant leadership experience in the banking industry for more than 30 years. He served as President of Sallie Mae. He joined Sallie Mae in 2014. He served as Executive Vice President of Banking at CIT Group Inc. from December 6, 2010 to December 31, 2013. Prior to CIT, he spent more than 30 years at Citigroup Inc. in various roles of increasing responsibility in business management, finance, credit management and M&A, directing the Bank's business development, strategic planning and operations. He served as Business Manager of Goldman Sachs from 2007 to 2008. He served as Chairman and Chief Executive Officer of Citicorp Retail Financial Services businesses that include Citibank, CitiFinancial and Primerica Financial Services. While at Citicorp, Mr. Quinlan also launched Citibank Direct, a full service Internet bank. He served as Managing Director of Mergers and Acquisitions Execution for Citigroup Inc., from 2002 to 2005. He served as the President of North American Retail Distribution of Citigroup, Inc. until May 26, 2007 and also served as its Chief Executive Officer of North American Retail Distribution. He served at Citigroup as First Chief Executive Officer of the International Cards Division from 2000 to 2002 and also served as Chief Financial Officer of North American Consumer. Mr. Quinlan was the Founder of CitiCorp. Investment Services and served as its Chief Executive Officer. Mr. Quinlan served as the Chairman of the Board and Chief Executive Officer of Retail Distribution North America for Citigroup, Inc., from 2005 to 2007. He also served as Executive Chairman of Coastal States Bank. He served as Executive Chairman of CoastalSouth Bancshares, Inc. since September 2010. He chairs both Sallie Mae and Sallie Mae Bank boards of directors. He served as the Vice Chairman at SLM Corporation since January 2014 until April 2014. He has been a Director at SLM Corporation since January 2014. He has been a Director at Sallie Mae Bank since January 16, 2014. He served as Director of CoastalSouth Bancshares, Inc. He served as a Director of Doral Bank, FSB since May 2008. He served as a Director of Íslandsbanki hf since January 25, 2010. He served as Director of CoastalStates Bank since September 2010. He served as a Director of Doral Bank, Inc. until November 30, 2010. He served as a Director of Doral Financial Corporation from May 2008 to December 2010 and Islandsbanki from 2009 to 2010. He also serves on the board for The Graduate Center, City University of New York. He has been Financial Management Consultant since 2007. Mr. Quinlan is a Certified Public Accountant. He holds M.Phil. He holds a PhD. degree in Economics from the City University of New York, as well as MBA degrees from both Columbia University and New York University, Stern School of Business and a B.A. in Philosophy from Fordham University.

CEO Compensation
  • Ray's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ray's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the SLM management team in years:

5.7
Average Tenure
59
Average Age
  • The average tenure for the SLM management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ray Quinlan

TITLE
Former Chairman
COMPENSATION
$6M
AGE
67
TENURE
5.9 yrs

Steve McGarry

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
61
TENURE
5.8 yrs

Paul Thome

TITLE
Executive VP & Chief Administrative Officer
COMPENSATION
$2M
AGE
68
TENURE
4 yrs

Nic Jafarieh

TITLE
Senior VP & General Counsel
COMPENSATION
$1M
AGE
44
TENURE
2 yrs

Jeffrey Dale

TITLE
Chief Risk Officer & Senior VP
COMPENSATION
$1M
AGE
57
TENURE
5.7 yrs

Brian Cronin

TITLE
Senior Director of Investor Relations

Jim Truitt

TITLE
Chief Compliance Officer and Senior Vice President
TENURE
11.7 yrs

Martha Holler

TITLE
Senior Vice President of Corporate Marketing & Communications

Donna Vieira

TITLE
Executive VP & Chief Marketing Officer
AGE
54
TENURE
1.2 yrs

Tim Morrison

TITLE
Senior Vice President of Government Relations
Board of Directors Tenure

Average tenure and age of the SLM board of directors in years:

5.9
Average Tenure
68
Average Age
  • The tenure for the SLM board of directors is about average.
Board of Directors

Ray Quinlan

TITLE
Former Chairman
COMPENSATION
$6M
AGE
67
TENURE
5.9 yrs

Earl Goode

TITLE
Independent Director
COMPENSATION
$190K
AGE
78
TENURE
19.7 yrs

Frank Puleo

TITLE
Independent Director
COMPENSATION
$195K
AGE
74
TENURE
12 yrs

Bill Shiebler

TITLE
Independent Director
COMPENSATION
$195K
AGE
77
TENURE
5.9 yrs

Paul Child

TITLE
Lead Independent Director
COMPENSATION
$205K
AGE
70
TENURE
6.2 yrs

Marianne Keler

TITLE
Independent Director
COMPENSATION
$190K
AGE
64
TENURE
5.9 yrs

Mary Carter Franke

TITLE
Independent Director
COMPENSATION
$185K
AGE
62
TENURE
5.9 yrs

Robert Strong

TITLE
Independent Director
COMPENSATION
$180K
AGE
69
TENURE
5.9 yrs

Jim Matheson

TITLE
Independent Director
COMPENSATION
$180K
AGE
59
TENURE
5 yrs

Vivian Schneck-Last

TITLE
Independent Director
COMPENSATION
$185K
AGE
58
TENURE
5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess SLM's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SLM has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SM1 News

Simply Wall St News

SM1 Company Info

Description

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 their families. It also offers retail deposit accounts, including certificates of deposit, money market deposit accounts, and high yield savings accounts; omnibus accounts; and a consumer savings network that provides financial rewards on everyday purchases to help families save for college. The company was formerly known as New BLC Corporation and changed its name to SLM Corporation in December 2013. SLM Corporation was founded in 1972 and is headquartered in Newark, Delaware.

Details
Name: SLM Corporation
SM1
Exchange: DB
Founded: 1972
$2,792,495,815
422,615,193
Website: http://www.salliemae.com
Address: SLM Corporation
300 Continental Drive,
Newark,
Delaware, 19713,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SLM Common Stock Nasdaq Global Select US USD 01. May 2014
DB SM1 Common Stock Deutsche Boerse AG DE EUR 01. May 2014
BRSE SM1 Common Stock Berne Stock Exchange CH CHF 01. May 2014
BMV SLM * Common Stock Bolsa Mexicana de Valores MX MXN 01. May 2014
NasdaqGS SLMB.P PFD SER B Nasdaq Global Select US USD 01. May 2014
Number of employees
Current staff
Staff numbers
1,900
SLM employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/30 23:15
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/30
Last earnings filing: 2020/02/28
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.