| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 94 | 6.3x | 17.4x | Top tier | |
Growth | 41 | 5.4% | 7.1% | Around median | |
Quality | 97 | — | — | Top tier | |
Safety | 13 | — | — | Bottom tier | |
Capital Return | 98 | 2.30% | 0.18% | Top tier | |
Momentum | 49 | -2.7% | 1.3% | Around median | |
Sentiment | 81 | 9 | 3 | Top tier |
10-year US Treasury yield 5.31% as of 2026-10-05. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
SLM Corporation, known as Sallie Mae, operates in private education finance and generates its income primarily from net interest income on loans, alongside loan servicing fees, program management fees associated with strategic partnerships, and gains on loan sales. In fiscal Q2 2026, loan originations totaled $716 million, up approximately 4.5% year over year, while the company remained a preferred lender at more than 2,100 educational institutions. Expansion drivers include enhancements to medical, dental, law, and MBA products and the launch of a new parent loan to capitalize on changes to federal PLUS programs.
The company recorded revenue of $670.3 million and net income of $58.5 million in fiscal Q2 2026, equivalent to earnings per share of $0.29, compared with revenue of $833.9 million, net income of $308.0 million, and earnings per share of $1.54 in fiscal Q1 2026. According to details from the earnings call, net interest income was $333 million and other income was $45 million; the former declined by $44 million year over year, while the latter increased by $16 million, supported by recurring program management fees and servicing fees. The net interest margin was 4.75%, while non-interest expenses rose to $195 million and the efficiency ratio reached 48.6%.
On a trailing twelve-month basis through fiscal Q2 2026, revenue totaled $3.1 billion, net income was $748.3 million, and earnings per share were approximately $3.78. These results compare with revenue of $3.1 billion, net income of $744.8 million, and earnings per share of $3.46 in fiscal 2025. Credit quality in fiscal Q2 2026 combined a decline in loans 30 days or more past due to 3.7% of loans in repayment, from 4.0% at the end of the previous quarter, with an increase in annualized net charge-offs to $113 million from $94 million.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $28.75, within a narrow range of $28 to $30, accompanied by a consensus “Buy” rating. The average target is approximately 10% below the 52-week range high of $32.02 and approximately 62% above the range low of $17.77, reflecting expectations for a recovery that do not assume a full return to the previous peak. The data does not include a valid comparable earnings multiple, while the re-rating remains tied to the realization of PLUS growth and margin improvement versus rising charge-offs and expenses.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Sallie Mae's management estimated on July 23, 2026, that PLUS program reforms could add between $4.5 billion and $5.0 billion to annual loan originations over several years. The company prepared for this by enhancing its medical, dental, law, and MBA products and launching a new parent loan. Initial application rates were at the high end of expectations or better, but management explained that the peak season was in its early stages and loan disbursements had not yet begun.
Revenue was $670.3 million, net income was $58.5 million, and earnings per share were $0.29 in fiscal Q2 2026. Net interest income was $333 million, while other income was $45 million and the net interest margin was 4.75%. Loan originations also totaled $716 million, up approximately 4.5% from the corresponding quarter of the previous year.
Net charge-offs rose to $113 million in fiscal Q2 2026 from $94 million a year earlier, and the company attributed approximately $16 million of the increase to a small segment affected by debt settlement companies. Conversely, loans 30 days or more past due declined to 3.7% of loans in repayment, compared with 4.0% at the end of fiscal Q1 2026. Successful repayment also exceeded 80% among active loan modification cohorts, while more than 75% of borrowers exiting the programs continued making payments after 3 and 6 months.
Management linked the decline in the net interest margin in fiscal Q2 2026 to elevated liquidity following the loan sale completed in late March 2026. A larger portion of funds remained invested at cash rates instead of being deployed into higher-yielding education loans. The company expects the 4.75% level to represent the year's low point and the fiscal 2026 average to approach 5% as peak-season loans are funded.
In fiscal Q2 2026, the company completed a $200 million accelerated share repurchase program through which it purchased 9.3 million shares. Since the beginning of fiscal 2026, it has repurchased approximately 13 million shares, or 6.5% of shares outstanding at the end of fiscal 2025, at an average of $21.95 per share. $242 million remained under the repurchase authorization, and management said on July 23, 2026, that it expected to use most of it during the remainder of fiscal 2026.
The partnerships generate program management and loan servicing fee income in addition to gains on loan sales, and fee income grew by more than 50% year over year from a small base. Management said the existing partnership with KKR proceeded according to plan and expected volumes in fiscal 2026. The company was also negotiating a second partnership with an economic structure similar to the existing agreement, while both partners expressed interest in graduate products after the peak season was completed.
