SLMSLM +2.24%78 Pretax Margin % is 71.49% as of Mar. 2026, which is 65% above its 10-year median of 43.41. GuruFocus rates SLM with a GF Score™ of 78/100 and a GF Value™ of $23.95 (Fairly Valued). The stock has 2 warning signs investors should review. Among 534 Credit Services companies, SLM ranks better than 80.15% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. SLM's Pre-Tax Income for the
three
months ended in Mar. 2026 was $400 Mil. SLM's Revenue for the
three
months ended in Mar. 2026 was $560 Mil. Therefore, SLM's pretax margin for the quarter that ended in Mar. 2026 was 71.49%.
The historical rank and industry rank for SLM's Pretax Margin % or its related term are showing as below:
SLM'
s Pretax Margin % Range Over the Past 10 Years
Min: 34.59 Med: 43.41 Max: 75.98
Current: 50.41
SLM's Pretax Margin % is ranked better than 80.15% of 534
companies
in the Credit Services industry
Industry Median: 19.865
vs SLM: 50.41
SLM (NAS:SLM) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
SLM Pretax Margin % Related Terms
SLM Pretax Margin % Historical Data
* Premium members only.
The historical data trend for SLM's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SLM vs ENVA, SEZL, NNI: Pretax Margin % Comparison
For the Credit Services subindustry, SLM's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SLM Pretax Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, SLM's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where SLM's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SLM (SLM) has a Pretax Margin % of 71.49% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on SLM and its competitors. This is 65% above median its historical median of 43.41. Over the past decade, SLM's Pretax Margin % has ranged from 34.59 to 75.98. According to the industry distribution chart, SLM ranks #106 out of 534 companies in the Credit Services industry, placing it in the top 19.9%.
Is SLM's Pretax Margin % too high?
SLM's current Pretax Margin % of 71.49% is 65% above median its 10-year median of 43.41. Over the past 10 years, this metric has ranged from a low of 34.59 to a high of 75.98. The Credit Services industry median Pretax Margin % is 19.87. SLM's value of 71.49% is 259.9% above this industry median. Based on the distribution chart, SLM ranks #106 out of 534 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, SLM has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SLM's Pretax Margin % compare to ENVA and SEZL?
According to the Credit Services industry distribution chart, SLM ranks #106 out of 534 companies for Pretax Margin %. This places SLM in the top 20% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 19.87. SLM's value of 71.49% is 259.9% above this benchmark. Historically, SLM's own Pretax Margin % has ranged from 34.59 to 75.98 over the past decade. While the company's 10-year median is 43.41 vs. the industry median of 19.87, SLM has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Credit Services company?
The median Pretax Margin % among Credit Services companies is 19.87, based on 534 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SLM's current Pretax Margin % of 71.49% is 259.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on SLM and its competitors. For the Credit Services industry, the median Pretax Margin % is 19.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SLM's current Pretax Margin % is 71.49%, which is 65% above median its own 10-year median of 43.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SLM stock overvalued right now?
Based on GuruFocus' analysis, SLM (SLM) is currently considered Fairly Valued. The stock's GF Value™ is $23.95, compared to a current price of $23.76 — trading 0.8% below its estimated fair value. The current Pretax Margin % is 71.49%, which is 65% above median its 10-year median of 43.41 and 259.9% above the Credit Services industry median of 19.87. SLM's overall GF Score™ is 78/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For SLM (SLM), the current Pretax Margin % is 71.49% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SLM (SLM) Overvalued in 2026?
Based on GuruFocus' analysis, SLM stock appears to be undervalued.
The current stock price of $23.76 is trading 0.8% below its estimated GF Value™ of $23.95.
GuruFocus considers SLM to be Fairly Valued.
Key valuation signals for SLM:
Pretax Margin %: 71.49% (65% above median its 10-year median of 43.41)
GF Value™: $23.95 vs. price of $23.76 (0.8% below fair value)
Industry Position: 259.9% above the Credit Services median (#106 of 534)
No single metric tells the full story. See the SLM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SLM Corp is an education solutions company. Its business is to originate and service loans to students and their families to finance the cost of their education. The term' Private Education Loans to mean education loans to students or their families that are not made, insured, or guaranteed by any state or federal government.
78GF Score
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