CASS INFORMATION SYSTEMS INC (CASS) Stock Fundamental Analysis
NASDAQ:CASS - Nasdaq - US14808P1093 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to CASS. CASS was compared to 100 industry peers in the Financial Services industry. While CASS is still in line with the averages on profitability rating, there are concerns on its financial health. CASS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CASS was profitable.
CASS had a positive operating cash flow in the past year.
Each year in the past 5 years CASS has been profitable.
CASS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CASS has a Return On Assets of 0.90%. This is comparable to the rest of the industry: CASS outperforms 43.00% of its industry peers.
CASS has a Return On Equity of 8.96%. This is comparable to the rest of the industry: CASS outperforms 49.00% of its industry peers.
With a Return On Invested Capital value of 2.23%, CASS perfoms like the industry average, outperforming 47.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CASS is significantly below the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 8.96% | ||
| ROIC | 2.23% |
ROA(3y)1.12%
ROA(5y)1.13%
ROE(3y)12.79%
ROE(5y)11.93%
ROIC(3y)3.13%
ROIC(5y)3.02%
1.3 Margins
CASS's Profit Margin of 9.70% is in line compared to the rest of the industry. CASS outperforms 49.00% of its industry peers.
CASS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 12.06%, CASS perfoms like the industry average, outperforming 42.00% of the companies in the same industry.
CASS's Operating Margin has declined in the last couple of years.
CASS has a better Gross Margin (91.13%) than 94.00% of its industry peers.
CASS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.06% | ||
| PM (TTM) | 9.7% | ||
| GM | 91.13% |
OM growth 3Y-20.33%
OM growth 5Y-13.73%
PM growth 3Y-22.08%
PM growth 5Y-14.14%
GM growth 3Y-2.92%
GM growth 5Y-1.28%
2. Health
2.1 Basic Checks
CASS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CASS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CASS has less shares outstanding
Compared to 1 year ago, CASS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.63, we must say that CASS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.63, CASS is not doing good in the industry: 73.00% of the companies in the same industry are doing better.
The Debt to FCF ratio of CASS is 14.99, which is on the high side as it means it would take CASS, 14.99 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 14.99, CASS perfoms like the industry average, outperforming 49.00% of the companies in the same industry.
A Debt/Equity ratio of 2.72 is on the high side and indicates that CASS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.72, CASS is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 14.99 | ||
| Altman-Z | -0.63 |
ROIC/WACC0.32
WACC6.92%
2.3 Liquidity
A Current Ratio of 0.03 indicates that CASS may have some problems paying its short term obligations.
CASS has a worse Current ratio (0.03) than 83.00% of its industry peers.
CASS has a Quick Ratio of 0.03. This is a bad value and indicates that CASS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CASS (0.03) is worse than 83.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 |
3. Growth
3.1 Past
The earnings per share for CASS have decreased by -6.53% in the last year.
Measured over the past years, CASS shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.64% on average per year.
CASS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.13%.
Measured over the past years, CASS shows a small growth in Revenue. The Revenue has been growing by 6.21% on average per year.
EPS 1Y (TTM)-6.53%
EPS 3Y-11.39%
EPS 5Y-7.64%
EPS Q2Q%106.25%
Revenue 1Y (TTM)3.13%
Revenue growth 3Y12.32%
Revenue growth 5Y6.21%
Sales Q2Q%-8.63%
3.2 Future
CASS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.13% yearly.
CASS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.26% yearly.
EPS Next Y98.83%
EPS Next 2Y51.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.44%
Revenue Next 2Y2.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.55, the valuation of CASS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CASS indicates a slightly more expensive valuation: CASS is more expensive than 64.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.35, CASS is valued at the same level.
The Price/Forward Earnings ratio is 13.31, which indicates a correct valuation of CASS.
CASS's Price/Forward Earnings ratio is in line with the industry average.
CASS is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.54, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 13.31 |
4.2 Price Multiples
CASS's Enterprise Value to EBITDA ratio is in line with the industry average.
67.00% of the companies in the same industry are more expensive than CASS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.2 | ||
| EV/EBITDA | 17.57 |
4.3 Compensation for Growth
CASS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CASS's earnings are expected to grow with 51.13% in the coming years.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y51.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.88%, CASS has a reasonable but not impressive dividend return.
CASS's Dividend Yield is a higher than the industry average which is at 5.06.
CASS's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
The dividend of CASS has a limited annual growth rate of 3.04%.
CASS has been paying a dividend for at least 10 years, so it has a reliable track record.
CASS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.04%
Div Incr Years23
Div Non Decr Years28
5.3 Sustainability
CASS pays out 78.87% of its income as dividend. This is not a sustainable payout ratio.
CASS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP78.87%
EPS Next 2Y51.13%
EPS Next 3YN/A
41.95
-1.65 (-3.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners67.95%
Inst Owner Change-0.09%
Ins Owners3.18%
Ins Owner Change5.95%
Market Cap560.45M
Analysts82.86
Price Target51 (21.57%)
Short Float %1.94%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Yearly Dividend1.22
Dividend Growth(5Y)3.04%
DP78.87%
Div Incr Years23
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.31%
Min EPS beat(2)-26.47%
Max EPS beat(2)7.84%
EPS beat(4)1
Avg EPS beat(4)-29.56%
Min EPS beat(4)-58.82%
Max EPS beat(4)7.84%
EPS beat(8)2
Avg EPS beat(8)-16.86%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.92%
Min Revenue beat(2)-11.64%
Max Revenue beat(2)-0.2%
Revenue beat(4)1
Avg Revenue beat(4)-3.85%
Min Revenue beat(4)-11.64%
Max Revenue beat(4)1.14%
Revenue beat(8)3
Avg Revenue beat(8)-2.63%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)8.7%
PT rev (3m)6.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.56%
EPS NY rev (1m)0%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 13.31 | ||
| P/S | 2.59 | ||
| P/FCF | 13.2 | ||
| P/OCF | 11.06 | ||
| P/B | 2.39 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 17.57 |
EPS(TTM)1.86
EY4.43%
EPS(NY)3.15
Fwd EY7.51%
FCF(TTM)3.18
FCFY7.57%
OCF(TTM)3.79
OCFY9.04%
SpS16.2
BVpS17.53
TBVpS15.98
PEG (NY)0.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 8.96% | ||
| ROCE | 8.78% | ||
| ROIC | 2.23% | ||
| ROICexc | 2.26% | ||
| ROICexgc | 3.37% | ||
| OM | 12.06% | ||
| PM (TTM) | 9.7% | ||
| GM | 91.13% | ||
| FCFM | 19.62% |
ROA(3y)1.12%
ROA(5y)1.13%
ROE(3y)12.79%
ROE(5y)11.93%
ROIC(3y)3.13%
ROIC(5y)3.02%
ROICexc(3y)4.36%
ROICexc(5y)4.3%
ROICexgc(3y)10.79%
ROICexgc(5y)10.35%
ROCE(3y)13.81%
ROCE(5y)12.66%
ROICexcg growth 3Y8.48%
ROICexcg growth 5Y-16.24%
ROICexc growth 3Y0.56%
ROICexc growth 5Y-11.64%
OM growth 3Y-20.33%
OM growth 5Y-13.73%
PM growth 3Y-22.08%
PM growth 5Y-14.14%
GM growth 3Y-2.92%
GM growth 5Y-1.28%
F-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 14.99 | ||
| Debt/EBITDA | 19.62 | ||
| Cap/Depr | 129.8% | ||
| Cap/Sales | 3.81% | ||
| Interest Coverage | 1.36 | ||
| Cash Conversion | 156.26% | ||
| Profit Quality | 202.3% | ||
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 | ||
| Altman-Z | -0.63 |
F-Score6
WACC6.92%
ROIC/WACC0.32
Cap/Depr(3y)189.66%
Cap/Depr(5y)134.25%
Cap/Sales(3y)4.7%
Cap/Sales(5y)3.65%
Profit Quality(3y)120.27%
Profit Quality(5y)129.6%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.53%
EPS 3Y-11.39%
EPS 5Y-7.64%
EPS Q2Q%106.25%
EPS Next Y98.83%
EPS Next 2Y51.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.13%
Revenue growth 3Y12.32%
Revenue growth 5Y6.21%
Sales Q2Q%-8.63%
Revenue Next Year-2.44%
Revenue Next 2Y2.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-30.23%
EBIT growth 3Y-10.52%
EBIT growth 5Y-8.37%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.22%
FCF growth 3Y-0.62%
FCF growth 5Y-5.55%
OCF growth 1Y9.81%
OCF growth 3Y4.08%
OCF growth 5Y-1.56%