$SLM Corp (SLM.US)$In the past 5 years, revenue grew to 2021...

Interest income contributes 80% to revenue, and non-interest income mainly contributes from asset sales.

The sharp decline in net profit in 2022 was mainly due to a sharp increase in credit loss reserves to 630 million yuan. This made net profit fluctuations less meaningful than the average, with an average net profit of 720 million yuan over 5 years. Preferred shares have very few dividends and can be ignored.

The balance ratio has increased from 88.8% to 94% over the past 5 years. Of the total assets of 28.8 billion yuan, net loans of 19.7 billion yuan account for the vast majority, cash of 4.8 billion dollars, and accounts receivable of 1.6 billion dollars. Securities investments of 2.5 billion dollars are all marketable securities and short-term investments. Of the total debt of $27.1 billion, customer deposits account for 21.4 billion, and total cash and securities investments of 7.3 billion dollars, accounting for 1/3 of deposits. The risk of crowding out exists but is not high.

Currently, the price-earnings ratio is 6.8, and the net price-earnings ratio is 2, but in addition to the net assets of 1.7 billion yuan, there are also 2.79 billion treasury stocks. The actual net price-earnings ratio should be even lower.

If you calculate the 5-year average net profit of 720 million, the corresponding price-earnings ratio is 4. The valuation is discounted, so you can choose carefully (⭐️)