SLMSLM +2.13%78 ROE % is 50.39% as of Mar. 2026, which is 86% above its 10-year median of 27.09. 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 529 Credit Services companies, SLM ranks better than 93.76% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. SLM's annualized net income for the quarter that ended in Mar. 2026 was $1,232 Mil. SLM's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $2,444 Mil. Therefore, SLM's annualized ROE % for the quarter that ended in Mar. 2026 was 50.39%.
The historical rank and industry rank for SLM's ROE % or its related term are showing as below:
SLM'
s ROE % Range Over the Past 10 Years
Min: 11.27 Med: 27.09 Max: 49.25
Current: 31.16
During the past 13 years, SLM's highest ROE % was 49.25%. The lowest was 11.27%. And the median was 27.09%.
SLM's ROE % is ranked better than 93.76% of 529
companies
in the Credit Services industry
Industry Median: 6.61
vs SLM: 31.16
SLM (NAS:SLM) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
SLM ROE % Related Terms
SLM ROE % Historical Data
* Premium members only.
The historical data trend for SLM's ROE % 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.
For the Credit Services subindustry, SLM's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, SLM's ROE % distribution charts can be found below:
* The bar in red indicates where SLM's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
SLM (SLM) has a ROE % of 50.39% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on SLM and its competitors. This is 86% above median its historical median of 27.09. Over the past decade, SLM's ROE % has ranged from 11.27 to 49.25. According to the industry distribution chart, SLM ranks #33 out of 529 companies in the Credit Services industry, placing it in the top 6.2%.
Is SLM's ROE % too high?
SLM's current ROE % of 50.39% is 86% above median its 10-year median of 27.09. Over the past 10 years, this metric has ranged from a low of 11.27 to a high of 49.25. The Credit Services industry median ROE % is 6.61. SLM's value of 50.39% is 662.3% above this industry median. Based on the distribution chart, SLM ranks #33 out of 529 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 ROE % compare to ENVA and SEZL?
According to the Credit Services industry distribution chart, SLM ranks #33 out of 529 companies for ROE %. This places SLM in the top 6% of its industry — outperforming the majority of peers. The industry median ROE % is 6.61. SLM's value of 50.39% is 662.3% above this benchmark. Historically, SLM's own ROE % has ranged from 11.27 to 49.25 over the past decade. While the company's 10-year median is 27.09 vs. the industry median of 6.61, 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 ROE % for a Credit Services company?
The median ROE % among Credit Services companies is 6.61, based on 529 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SLM's current ROE % of 50.39% is 662.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on SLM and its competitors. For the Credit Services industry, the median ROE % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SLM's current ROE % is 50.39%, which is 86% above median its own 10-year median of 27.09. 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 $23.74 — trading 0.9% below its estimated fair value. The current ROE % is 50.39%, which is 86% above median its 10-year median of 27.09 and 662.3% above the Credit Services industry median of 6.61. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For SLM (SLM), the current ROE % is 50.39% 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 $23.74 is trading 0.9% below its estimated GF Value™ of $23.95.
GuruFocus considers SLM to be Fairly Valued.
Key valuation signals for SLM:
ROE %: 50.39% (86% above median its 10-year median of 27.09)
GF Value™: $23.95 vs. price of $23.74 (0.9% below fair value)
Industry Position: 662.3% above the Credit Services median (#33 of 529)
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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