| 2014 | 2015 | 2016 | 2018 | 2019 (projected) | SLM Corp Net Income | 194,219,000 | 274,284,000 | 250,327,000 | 225,294,300 | 502,700,000 | SLM Corp Gross Profit | 650,234,000 | 795,037,000 | 800,749,000 | 720,674,100 | 1,120,000,000 |
SLM Corp gains -1.69
 | 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 chance of distress is over 55.0 percent. 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 92.41%. 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, the stock has beta coefficient of 1.1846 . This entails as the benchmark fluctuates upward, the company is expected to outperform it on average . However, if the benchmark returns are expected to be negative, SLM Corp will likely underperform. 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 Raphi Shpitalnik
The entity has beta of 2.08. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, SLM Corp will likely underperform. 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.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as SLM Corp. Your research has to be compared to or analyzed against SLM Corp's peers to derive any actionable benefits. When done correctly, SLM Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in SLM Corp.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as SLM Corp. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for SLM Corp
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of SLM Corp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How 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.
SLM Corp Gross Profit
SLM Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing SLM Corp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show SLM Corp Gross Profit growth over the last 10 years. Please check SLM Corp's gross profit and other fundamental indicators for more details.
An Additional Perspective On SLM Corp
SLM Corporation reported last year revenue of 1.18B. Total Income to common stockholders was 502.7M with profit before taxes, overhead, and interest of 1.12B. The recent decline in stock price has created some momentum for investors as it was traded today as low as 9.79 and as high as 10.39 per share. The company directors and management have failed to build on market volatilities in March. However, diversifying your overall positions with SLM Corporation may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.1813. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. SLM Corp defends 4.99x cash per share. SLM Corp is selling at 9.90. That is 1.69 percent decrease. Started trading at 9.90. SLM Corp Tangible Asset Value is increasing over the last 5 years. The previous year value of SLM Corp Tangible Asset Value was 14,822,608,579. Also, SLM Corp Depreciation Amortization and Accretion is considerably stable at the moment.
To conclude, we see that SLM Corp Almost mirrors market. The business is undervalued with about average probability of bankruptcy within the next 24 months. Our concluding 'Buy/Hold/Sell' recommendation on the business is Strong Hold.
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