CASS INFORMATION SYSTEMS INC (CASS) Stock Fundamental Analysis
NASDAQ:CASS - Nasdaq - US14808P1093 - Common Stock - Currency: USD
Taking everything into account, CASS scores 3 out of 10 in our fundamental rating. CASS was compared to 99 industry peers in the Financial Services industry. CASS has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year CASS had a positive cash flow from operations.
CASS had positive earnings in each of the past 5 years.
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.
With a Return On Equity value of 8.96%, CASS perfoms like the industry average, outperforming 49.00% of the companies in the same industry.
CASS has a Return On Invested Capital (2.23%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CASS is significantly below the industry average of 11.83%.
| 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
With a Profit Margin value of 9.70%, CASS perfoms like the industry average, outperforming 49.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CASS has declined.
CASS has a Operating Margin (12.06%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CASS has declined.
The Gross Margin of CASS (91.13%) is better than 94.00% of its industry peers.
In the last couple of years the Gross Margin of CASS has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CASS is destroying value.
CASS has less shares outstanding than it did 1 year ago.
CASS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CASS has a worse debt to assets ratio.
2.2 Solvency
CASS has an Altman-Z score of -0.64. This is a bad value and indicates that CASS is not financially healthy and even has some risk of bankruptcy.
CASS's Altman-Z score of -0.64 is on the low side compared to the rest of the industry. CASS is outperformed by 72.00% of its industry peers.
CASS has a debt to FCF ratio of 14.99. This is a negative value and a sign of low solvency as CASS would need 14.99 years to pay back of all of its debts.
CASS has a Debt to FCF ratio (14.99) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.72 is on the high side and indicates that CASS has dependencies on debt financing.
CASS has a Debt to Equity ratio of 2.72. This is in the lower half of the industry: CASS underperforms 69.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 14.99 | ||
| Altman-Z | -0.64 |
ROIC/WACC0.33
WACC6.78%
2.3 Liquidity
CASS has a Current 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.
CASS has a worse Current ratio (0.03) than 82.00% of its industry peers.
A Quick Ratio of 0.03 indicates that CASS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.03, CASS is doing worse than 82.00% of the companies in the same industry.
| 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 strongly by -30.59% in the last year.
The Earnings Per Share has been decreasing by -7.64% on average over the past years.
The Revenue has been growing slightly by 0.20% in the past year.
The Revenue has been growing slightly by 6.21% on average over the past years.
EPS 1Y (TTM)-30.59%
EPS 3Y-11.39%
EPS 5Y-7.64%
EPS Q2Q%26.92%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y12.32%
Revenue growth 5Y6.21%
Sales Q2Q%-6.58%
3.2 Future
Based on estimates for the next years, CASS will show a very strong growth in Earnings Per Share. The EPS will grow by 51.13% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.21 indicates a quite expensive valuation of CASS.
Based on the Price/Earnings ratio, CASS is valued a bit more expensive than 69.00% of the companies in the same industry.
CASS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.35.
CASS is valuated correctly with a Price/Forward Earnings ratio of 13.12.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CASS is on the same level as its industry peers.
CASS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 13.12 |
4.2 Price Multiples
CASS's Enterprise Value to EBITDA ratio is in line with the industry average.
CASS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CASS is cheaper than 67.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.02 | ||
| EV/EBITDA | 16.65 |
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)0.28
PEG (5Y)N/A
EPS Next 2Y51.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CASS has a Yearly Dividend Yield of 2.98%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.68, CASS pays a bit more dividend than its industry peers.
CASS's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
The dividend of CASS has a limited annual growth rate of 3.04%.
CASS has paid a dividend for at least 10 years, which is 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
41.36
-0.32 (-0.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners67.95%
Inst Owner Change1.23%
Ins Owners3.18%
Ins Owner Change5.95%
Market Cap552.57M
Analysts82.86
Price Target46.92 (13.44%)
Short Float %1.52%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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)0%
PT rev (3m)-2.13%
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 | 27.21 | ||
| Fwd PE | 13.12 | ||
| P/S | 2.55 | ||
| P/FCF | 13.02 | ||
| P/OCF | 10.9 | ||
| P/B | 2.36 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 16.65 |
EPS(TTM)1.52
EY3.68%
EPS(NY)3.15
Fwd EY7.62%
FCF(TTM)3.18
FCFY7.68%
OCF(TTM)3.79
OCFY9.17%
SpS16.2
BVpS17.53
TBVpS15.98
PEG (NY)0.28
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 | -0.64 |
F-Score6
WACC6.78%
ROIC/WACC0.33
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)-30.59%
EPS 3Y-11.39%
EPS 5Y-7.64%
EPS Q2Q%26.92%
EPS Next Y98.83%
EPS Next 2Y51.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.2%
Revenue growth 3Y12.32%
Revenue growth 5Y6.21%
Sales Q2Q%-6.58%
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%