SLM Corp. (SLM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Affirm Holdings, Inc.

SLM Corp.

FirstCash Holdings, Inc.

OneMain Holdings, Inc.

Mr. Cooper Group, Inc.

Air Lease Corp.

PennyMac Financial Services, Inc.

Ryder System, Inc.

Herc Holdings, Inc.

The Western Union Co.

Hertz Global Holdings, Inc.

Why is SLM Corp. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 32.73%

Positive results in Mar 26

INTEREST COVERAGE RATIO(Q) Highest at 632.36
RAW MATERIAL COST(Y) Fallen by 0.73% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 32.31 %

With ROE of 30.39%, it has a attractive valuation with a 2.80 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -27.35%, its profits have risen by 22.4% ; the PEG ratio of the company is 0.3

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to SLM Corp. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is SLM Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

SLM Corp.

-27.35%

0.26

41.22%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.50%

EBIT Growth (5y)

3.11%

EBIT to Interest (avg)

7.65

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

23.50%

Dividend Payout Ratio

15.04%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

ROE (avg)

32.73%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.80

EV to EBIT

1.47

EV to EBITDA

1.45

EV to Capital Employed

-1.24

EV to Sales

0.78

PEG Ratio

0.33

Dividend Yield

1.71%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

30.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 632.36

RAW MATERIAL COST(Y)

Fallen by 0.73% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 32.31 %

PRE-TAX PROFIT(Q)

At USD 400.35 MM has Grown at 61.34%

NET PROFIT(Q)

Highest at USD 307.95 MM

EPS(Q)

Highest at USD 1.54

-1What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 8.45%

Here's what is working for SLM Corp.

Interest Coverage Ratio

Highest at 632.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At USD 400.35 MM has Grown at 61.34%

over average net sales of the previous four periods of USD 248.14 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 307.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 307.95 MM has Grown at 65.38%

over average net sales of the previous four periods of USD 186.21 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 1.54

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 32.31 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.73% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 5.07 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for SLM Corp.

Dividend Payout Ratio

Lowest at 8.45%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)