Slm Corporation Intrinsic Stock Value – SLM CORPORATION Reports Fourth Quarter FY2022 Earnings Results on February 1 2023.
April 7, 2023
Earnings Overview
SLM CORPORATION ($NASDAQ:SLM) reported a total revenue of USD -77.0 million for their fourth quarter of FY2022, ending December 31 2022, on February 1 2023. This rate showed a 125.2% decrease in comparison to the same period of the previous year. Moreover, the net income was USD 340.8 million, demonstrating a 34.5% drop compared to the year prior.
Transcripts Simplified
Sallie Mae experienced a loss of $0.33 a share in the fourth quarter of 2022 and diluted earnings of $1.76 a share for the full year due to an increase in their provision for credit losses as well as a write-down of the value of an investment in non-marketable equity securities. They experienced strong origination growth in 2022, seeing an 11% increase in the fourth quarter and 10% full year increase, driven by an increase in underclass disbursements and improved marketing effectiveness. Credit quality of originations was consistent with past years, with Average FICO scores of 747. They expect charge offs to remain at an elevated level, but are well positioned for future success.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Slm Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 1.82k | 459.99 | 25.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Slm Corporation. More…
| Operations | Investing | Financing |
| 4.99 | 1.08k | -854.89 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Slm Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 28.81k | 27.08k | 7.92 |
Key Ratios Snapshot
Some of the financial key ratios for Slm Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.9% | – | – |
| FCF Margin | ROE | ROA |
| 0.3% | 21.3% | 1.4% |
Stock Price
SLM CORPORATION stock opened at $17.4 and closed at $17.8, up 1.3% from the last closing price of $17.6. The company attributed this decrease to cost savings initiatives implemented during the quarter. Overall, SLM CORPORATION reported solid results for the fourth quarter of FY2022. The company’s share price also increased following the release of the earnings report, indicating that investors have confidence in the company’s ability to continue to achieve profitable results in the future. Live Quote…
Analysis – Slm Corporation Intrinsic Stock Value
At GoodWhale, we have conducted an analysis of SLM Corporation‘s fundamentals and our proprietary Valuation Line analysis suggests that the intrinsic value of SLM Corporation’s shares is around $26.4. Currently, the stock is traded at $17.8, providing investors with a 32.7% discount on the intrinsic value. As such, this presents an attractive opportunity to enter into a long position on the stock. We believe the undervaluation is the result of investors not fully taking into account SLM Corporation’s current and projected long-term financial performance. We believe that the company’s competitive advantage, in terms of both its cost structure and its range of products, could lead to higher than expected returns and as a result, a revaluation of the stock price. Overall, we believe that SLM Corporation is currently undervalued, and presents an attractive investment opportunity for those looking for a long-term return. More…
Peers
SLM Corp competes with Nelnet Inc, ZENKOKU HOSHO Co Ltd, and Harmoney Corp Ltd in the student loan industry. All four companies offer student loan products and services to customers in the United States and around the world. While each company has its own strengths and weaknesses, SLM Corp has been able to maintain a competitive edge through its focus on technology and innovation.
– Nelnet Inc ($NYSE:NNI)
Nelnet is a publicly traded student loan servicing company based in the United States. The company services student loans on behalf of the US Department of Education and private lenders. Nelnet also provides tuition payment processing and related services to educational institutions. As of December 31, 2020, Nelnet had $313 billion in student loan assets under management.
Nelnet’s market cap is $3.16 billion as of 2022. The company has a strong presence in the student loan servicing industry and is known for its efficient management of student loan assets. Nelnet is well-positioned to continue growing its market share in the student loan servicing industry.
– ZENKOKU HOSHO Co Ltd ($TSE:7164)
ZENKOKU HOSHO Co Ltd is a Japanese real estate company with a market cap of 329.14B as of 2022. The company’s ROE is 14.07%. The company is engaged in the business of leasing, managing, and developing office buildings, retail properties, and residential properties.
– Harmoney Corp Ltd ($NZSE:HMY)
Harmoney Corp Ltd is a financial services company that offers a range of products and services including loans, credit cards, and insurance. The company has a market cap of 77.78M as of 2022 and a return on equity of -0.71%. The company’s products and services are designed to meet the needs of consumers and businesses in the United Kingdom.
Summary
SLM CORPORATION‘s fourth quarter FY2022 earnings results show a significant decrease in both total revenue and net income compared to the same period the previous year. Total revenue was reported as -USD 77.0 million, down 125.2%, while net income was USD 340.8 million, representing a 34.5% decrease. As a result, investors may wish to reassess their current investments in SLM CORPORATION and take caution in making decisions about future investments. Investors should also be aware of the potential for further decreases in revenue and net income for the company in the future.
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