SLM Corp (SLM, Financial) has experienced a notable uptick in its stock price, with a 5.77% gain over the past week and an impressive 19.95% gain over the past three months. The company's market capitalization stands at $3.99 billion, with the current stock price at $17.62. When compared to the GF Value of $21.18, SLM is currently considered modestly undervalued. This is a positive shift from three months ago when the stock was seen as a possible value trap, with a past GF Value of $21.44. Investors are now looking at SLM with renewed interest as its valuation suggests potential for growth.
Understanding SLM Corp's Business
SLM Corp, operating in the credit services industry, is the largest student lender in the United States. The company's portfolio includes student loans through the Federal Family Education Loan Program and private lending. 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. 
Profitability Insights
SLM Corp's Profitability Rank is a solid 6/10. The company's Return on Equity (ROE) is an impressive 18.37%, which is better than 83.95% of its peers in the industry. Its Return on Assets (ROA) stands at 1.16%, surpassing 41.59% of competitors. Notably, SLM has maintained profitability for the past 10 years, a feat better than 99.8% of companies in its space. These figures underscore SLM's efficient use of equity and assets to generate profits.
Growth Trajectory
SLM's Growth Rank is an impressive 7/10. The company has demonstrated strong growth with a 3-Year Revenue Growth Rate per Share of 21.50%, outperforming 78.32% of the industry. Its 5-Year Revenue Growth Rate per Share is even more remarkable at 23.30%, which is better than 84.11% of its industry peers. However, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at -6.57%, which, while not as robust, still ranks better than 4.62% of the industry. The 3-Year EPS without NRI Growth Rate is 11.50%, and the 5-Year EPS without NRI Growth Rate is a strong 30.80%, indicating solid earnings growth.
Notable Shareholders
Among the significant shareholders of SLM Corp, HOTCHKIS & WILEY leads with 6,925,428 shares, representing a 3.06% share percentage. Renowned investor Jim Simons (Trades, Portfolio) holds 504,696 shares, accounting for 0.22% of the shares, while Ray Dalio (Trades, Portfolio) has a stake of 277,669 shares, making up 0.12% of the shares. The involvement of these prominent investors may suggest confidence in the company's future performance and strategic direction.
Competitive Landscape
SLM Corp operates in a competitive environment with key players like Nelnet Inc (NNI, Financial) with a market cap of $3.21 billion, Qifu Technology Inc (QFIN, Financial) valued at $2.29 billion, and The Western Union Co (WU, Financial) with a market cap of $4.33 billion. SLM's market position is robust, with a market cap that competes closely with these industry counterparts.
Conclusion
In conclusion, SLM Corp's recent stock performance and current valuation suggest a company on the rise. With a GF Value indicating that the stock is modestly undervalued, investors may find an attractive entry point. The company's strong profitability and growth metrics, coupled with the backing of significant shareholders, position it well for future success. While facing a competitive market, SLM's solid financials and strategic focus on student financial services make it a noteworthy stock for value investors to consider.
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.
