SLM Corp (SLM, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $3.81 billion. The current price of SLM shares is $16.84, reflecting a significant 9.05% gain over the past week and an impressive 17.32% gain over the past three months. When compared to the GF Value of $21.06, down from a past GF Value of $21.44, SLM is currently considered modestly undervalued. This is a positive shift from the previous assessment of a possible value trap, where investors were advised to think twice before investing.
Introduction to SLM Corp
SLM Corp, operating in the credit services industry, is the largest student lender in the United States. The company's portfolio includes the origination and servicing of student loans through both federal and private channels. Additionally, SLM Corp provides debt-management services and college savings programs. This comprehensive approach to student financial services positions SLM as a key player in the education finance sector.
Assessing SLM Corp's Profitability
SLM Corp's Profitability Rank stands at 5/10, indicating a moderate level of profitability within its industry. The company's Return on Equity (ROE) is an impressive 18.37%, which is better than 84.01% of 519 companies in the same sector. Its Return on Assets (ROA) is 1.16%, surpassing 41.8% of 543 companies. Notably, SLM has maintained profitability for the past 10 years, a feat better than 99.81% of 516 companies, showcasing its consistent performance and financial stability.
Growth Trajectory of SLM Corp
SLM Corp's Growth Rank is a robust 7/10, reflecting its strong growth metrics. The company's 3-Year Revenue Growth Rate per Share stands at 21.50%, outperforming 78.37% of 490 companies. Its 5-Year Revenue Growth Rate per Share is even more impressive at 23.30%, surpassing 84.15% of 429 companies. However, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at -6.57%, which is still better than 4.62% of 65 companies. The 3-Year EPS without NRI Growth Rate is 11.50%, and the 5-Year EPS without NRI Growth Rate is a remarkable 30.80%, indicating strong earnings growth that exceeds the performance of many competitors.
Notable Shareholders in SLM Corp
SLM Corp's shareholder base includes prominent investment firms and individuals. HOTCHKIS & WILEY is the leading holder with 6,925,428 shares, accounting for a 3.06% share percentage. Renowned investor Jim Simons (Trades, Portfolio) holds 504,696 shares, representing a 0.22% stake. Ray Dalio (Trades, Portfolio), another influential investor, owns 277,669 shares, which equates to a 0.12% share percentage. These significant shareholders reflect confidence in SLM's business model and future prospects.
Competitive Landscape
When compared to its competitors, SLM Corp holds its ground with a market cap of $3.81 billion. Nelnet Inc (NNI, Financial) has a market cap of $3.17 billion, Qifu Technology Inc (QFIN, Financial) stands at $2.39 billion, and The Western Union Co (WU, Financial) is valued at $4.32 billion. These companies represent the competitive environment within the credit services industry, where SLM Corp maintains a strong position.
Conclusion
In summary, SLM Corp's recent stock performance and valuation suggest a positive outlook for the company. With a GF Value indicating that the stock is modestly undervalued, investors may find an attractive entry point. The company's consistent profitability and impressive growth rates, coupled with the backing of significant shareholders, position SLM as a compelling investment within the credit services industry. As it stands against its competitors, SLM Corp demonstrates the potential for sustained growth and profitability, making it a stock to watch in the coming quarters.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
