$SLM Corp (SLM.US)$Revenue has grown over the past 5 years u...

Interest income contributes 80% to revenue, while non-interest income mainly relies on gains from asset sales.

The significant drop in net income in 2022 is mainly due to a significant increase in crediting loss reserves to 0.63 billion, making the fluctuation in net income less meaningful than the mean, with an average net income of 0.72 billion over 5 years. Preferred stock dividends are very minimal and can be ignored.

Over the past 5 years, the asset-liability ratio has increased from 88.8% to 94%. Out of total assets of 28.8 billion, net loans amount to 19.7 billion, with cash at 4.8 billion, accounts receivable at 1.6 billion, and securities investments at 2.5 billion, all being available-for-sale securities and short-term investments. Out of total liabilities of 27.1 billion, customer deposits amount to 21.4 billion, while cash and securities investments total 7.3 billion, representing 1/3 of the deposits, indicating the existence of but low risk of a run.

Currently, the P/E ratio is 6.8, the P/B ratio is 2, but beyond the net assets of 1.7 billion, there are 2.79 billion shares held in treasury, leading to a potentially lower actual P/B ratio.

If calculated based on a 5-year average net income of 0.72 billion, the corresponding pe is 4, with a certain discount in valuation, one can choose carefully (⭐️).