| 2014 | 2015 | 2016 | 2018 | 2019 (projected) | SLM Corp Net Income | 194,219,000 | 274,284,000 | 250,327,000 | 225,294,300 | 471,840,000 | SLM Corp Gross Profit | 650,234,000 | 795,037,000 | 800,749,000 | 720,674,100 | 1,120,000,000 |
Will SLM Corp continue to eat your money?
 | By Ellen Johnson | Macroaxis Story |
Today's write-up is for all stakeholders who are seriously contemplating on exiting a position in SLM Corporation. I will summarize the rationale of why SLM Corp stakeholders should not be insulted by the new pull out. The company current daily volatility is 1.19 percent, with beta of 0.1 and alpha of -0.11 over S&P 500. What is SLM Corp Target Price Odds to finish over Current Price? Out from normal probability distribution, the odds of SLM Corp to move above current price in 30 days from now is about 81.3%. The SLM Corporation probability density function shows the probability of SLM Corp Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, SLM Corp has beta of 0.1036 . This entails as returns on market go up, SLM Corp average returns are expected to increase less than the benchmark. However during bear market, the loss on holding SLM Corporation will be expected to be much smaller as well. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. SLM Corporation is significantly underperforming S&P 500.
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Reviewed by Michael Smolkin
SLM Corporation has 4.28B in debt with debt to equity (D/E) ratio of 144.1 . This implies that the organisation may be unable to create cash to meet all of its financial commitments. This firm dividends can provide a clue to current valuation of the stock. SLM Corp is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Earning per share calculations of the entity is based on official Zacks consensus of 3 analysts regarding the stock future annual earnings. Given the historical accuracy of 90.0%, the future earnings per share of the company is estimated to be 0.52 with lowest and highest values of 0.52 and 0.52 respectively. Please note that this consensus of annual earnings estimates for SLM Corp is an estimate of EPS before non-recurring items and including employee stock options expenses. SLM Corp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of SLM Corp, including all of SLM Corp's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of SLM Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall SLM Corp debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding SLM Total Liabilities
SLM Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. SLM Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on SLM Corp balance sheet include debt obligations and money owed to different SLM Corp vendors, workers, and loan providers. Below is the chart of SLM short long-term liabilities accounts currently reported on its balance sheet. You can use SLM Corp financial leverage analysis tool to get a better grip on understanding its financial positionHow important is SLM Corp's Liquidity
SLM Corp financial leverage refers to using borrowed capital as a funding source to finance SLM Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. SLM Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to SLM Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of SLM Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between SLM Corp's total debt and its cash.
An Additional Perspective On SLM Corp
SLM Corp price decrease over the last few months has created some momentum for investors as it was traded today as low as 10.18 and as high as 10.315 per share. The company directors and management were not very successful in positioning the company components to exploit market volatility in March. However, diversifying your holdings with SLM Corporation or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.186. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. SLM Corp makes 436.8m shares outstanding. SLM Corp is selling at 10.26. That is 0.39 percent up. Today highest was 10.315. SLM Corp Cash and Equivalents Turnover is decreasing over the last 5 years. Also, SLM Corp Total Assets Per Share is decreasing over the last 5 years.
To conclude, our analysis show that SLM Corp Barely shadows market. The business is undervalued and projects chance of distress close to average for the next 2 years. Our primary Buy/Hold/Sell recommendation on the business is Hold.
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