MeritValue

SLM Corp

SLMdata completeness 88%19 fiscal years on file

Data notes: no data for concept 'capex'

The thesis, from the filings

SLM Corp earns about 42% on invested capital, and has bought back 34% of its shares over 5 years. The applicable estimate puts fair value near $29.89 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.78B1$2.03B2$2.59B3$2.62B3$2.63B3
Net income$1.16B4$469M5$581.4M6$608.3M6$744.8M6
Operating cash flow−$49.5M7$4.99M8−$144.6M9−$329.4M9−$398.6M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$5.93B10$5.24B11$5.23B12$6.44B13$5.86B13
Cash & equivalents$4.33B14$4.62B15$4.15B16$4.7B16$4.24B16
Diluted shares319.9M261.5M234.1M219.9M210.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$116.23
your share of equity
Profit it earned you last year
$35.32
Free cash flow it threw off
—
Debt you’d be carrying
$277.88

10 shares is a claim on $116.23 of net worth that earned you $35.32 last year, against $277.88 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
42% avg · 5y
FY21 39%FY22 37%FY23 46%FY24 45%FY25 46%

It earned an average 42% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−34% shares · 5y

Share count is down 34% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$29.89
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$608.3M
  • growthAssumed0.0%
Graham Number
$30.08
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001628280-24-006382 (InterestAndDividendIncomeOperating)
  2. 10-K · period ending 2022-12-31 · accession 0001628280-25-006776 (InterestAndDividendIncomeOperating)
  3. 10-K · period ending 2023-12-31 · accession 0001032033-26-000011 (InterestAndDividendIncomeOperating)
  4. 10-K · period ending 2021-12-31 · accession 0001628280-24-006382 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001628280-25-006776 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001032033-26-000011 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001628280-24-006382 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001628280-25-006776 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001032033-26-000011 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001628280-23-004893 (LongTermDebt)
  11. 10-K · period ending 2022-12-31 · accession 0001628280-24-006382 (LongTermDebt)
  12. 10-K · period ending 2023-12-31 · accession 0001628280-25-006776 (LongTermDebt)
  13. 10-K · period ending 2024-12-31 · accession 0001032033-26-000011 (LongTermDebt)
  14. 10-K · period ending 2021-12-31 · accession 0001628280-24-006382 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2022-12-31 · accession 0001628280-25-006776 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-12-31 · accession 0001032033-26-000011 (CashAndCashEquivalentsAtCarryingValue)