Stock fact sheet · data as of
SLM Corporation (SLMBP): fair value, margin of safety and Wheel Score
Ticker symbol SLMBP · Financial Services · Financial - Credit Services · United States · Preferred stock · Blend Quality
SLMBP is not SLM Corporation's common stock: it is its preferred stock. Preferred shares pay a set dividend and rank ahead of the common stock if the company fails, but usually carry no vote and do not share in the company's growth the same way. The valuation models on this page are built for common stock and say little about a preferred share. The common stock trades as SLM (common stock).
Is SLMBP undervalued?
At 70.99 (close of 5 Nov 2026), SLMBP trades 70% below the GLS average fair value of 236.36. That average comes from 9 models run on the latest filings, and 6 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns SLM Corporation the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 9 models disagree widely: DDM gives 7.65 while GLS Growth gives 711.39. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for SLMBP, so the nightly engine files it under Blend (value score 76, growth score 61, out of 100). It also carries the Quality tag (Quality = moat 7.5+ out of 10 and Piotroski 7+).
Nine valuation models for SLMBP
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 33.77 | -52% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 28.92 | -59% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 664.68 | +836% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 290.50 | +309% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 711.39 | +902% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 134.06 | +89% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 127.16 | +79% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 7.65 | -89% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 129.11 | +82% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -237.14 | -434% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 40.00 | -44% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health SLMBP scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 8.3 out of 10 - high returns on capital, steady margins and growth that held up through bad years point to a durable business.
Returns on capital are moderate - ROIC 9.0%, ROE 30.4%, ROA 2.5% - with debt at 2.39 times equity and a free-cash-flow yield of 17.0%. Debt of 2.39 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 2.78% at a payout ratio of 122%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Business Services 58%, Core Earnings 38%, Ffelp Loans 4% (quarter Q1 FY2014).
Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 9.0% |
|---|---|---|---|
| GLS Moat | 8.3 / 10 | ROE | 30.4% |
| Debt / equity | 2.39 | ROA | 2.5% |
| Free-cash-flow yield | 17.0% | Payout ratio | 122% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 38: No options
SLMBP has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business. It fails the first Wheel Trade Filter (options that actually trade), so the score stays under 70 and is shown as "No options" (38 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 2k shares a day on a market cap of $6.4B, with a beta of 0.95; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | no listed options |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | no implied volatility |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 70% below fair value | |
| Premium | Weak | no option data | |
| Moat | Strong | moat 8.3/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Fair | not scored yet - half marks | |
| Option trading | Weak | no option volume data | |
| Stability | Good | beta 0.95, $6.4B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 27 Jan 2027, 83 days away - outside the window of a 30-45-day put sold today. The shares go ex-dividend on 4 Dec 2026 (1.49 per share), so a covered call sold before then carries a small early-assignment risk around that date.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Financial - Credit Services
The 12 companies below are the closest to SLM Corporation by market cap within the Financial - Credit Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| OMF OneMain Holdings, Inc. | 57.97 | 207.52 | +72% | 82Good | $6.6B |
| LU Lufax Holding Ltd | 8.51 | 43.72 | +81% | 39Weak | $7.4B |
| KLAR Klarna Group plc | 13.89 | 8.37 | -66% | 31Weak | $5.2B |
| CACC Credit Acceptance Corporation | 498.68 | 965.03 | +48% | 50Fair | $5.1B |
| FCFS FirstCash Holdings, Inc | 193.34 | 232.88 | +17% | 77Good | $8.3B |
| SEZL Sezzle Inc. | 136.69 | 219.84 | +38% | 41Weak | $4.6B |
| NNI Nelnet, Inc. | 127.58 | 171.16 | +25% | 42Weak | $4.6B |
| ENVA Enova International, Inc. | 181.18 | 713.58 | +75% | 79Good | $4.4B |
| JSM Navient Corporation SR NT 6% 121543 | 15.59 | 45.78 | +66% | 29No options | $4.3B |
| BFH Bread Financial Holdings, Inc. | 104.83 | 428.64 | +76% | 85Prime | $4.0B |
| SLM SLM Corporation | 18.68 | 83.62 | +78% | 80Good | $3.5B |
| ALLY Ally Financial Inc. | 39.36 | 70.99 | +45% | 83Good | $12.0B |
⚖ Compare SLMBP with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about SLMBP
Is SLMBP the same as SLM Corporation stock?
No. SLMBP is not SLM Corporation's common stock: it is its preferred stock. Preferred shares pay a set dividend and rank ahead of the common stock if the company fails, but usually carry no vote and do not share in the company's growth the same way. The valuation models on this page are built for common stock and say little about a preferred share. The common stock trades as SLM (common stock).
Is SLMBP undervalued right now?
By the GLS models, yes: at 70.99 the stock is 70% below the average fair value of 236.36 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of SLMBP and what does it mean?
SLMBP has no listed options in our nightly snapshot, so it cannot be wheeled; it fails the first Wheel Trade Filter (options that actually trade), stays under 70 and is shown as "No options".
What is the GLS fair value for SLMBP?
236.36 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does SLM Corporation report earnings next?
The next earnings report is due on 27 Jan 2027, 83 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does SLMBP have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on SLMBP, so the wheel strategy cannot be run on it and the Wheel Score stays under 70.