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 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CASS had positive earnings in the past year.
CASS had a positive operating cash flow in the past year.
CASS had positive earnings in each of the past 5 years.
In the past 5 years CASS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CASS (0.80%) is worse than 61.00% of its industry peers.
Looking at the Return On Equity, with a value of 8.37%, CASS is in line with its industry, outperforming 50.00% of the companies in the same industry.
With a Return On Invested Capital value of 1.96%, CASS perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
CASS had an Average Return On Invested Capital over the past 3 years of 3.13%. This is significantly below the industry average of 11.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 8.37% | ||
| ROIC | 1.96% |
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 8.72% 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.
CASS has a worse Operating Margin (11.01%) than 60.00% of its industry peers.
CASS's Operating Margin has declined in the last couple of years.
CASS's Gross Margin of 90.79% is amongst the best of the industry. CASS outperforms 94.00% of its industry peers.
CASS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.01% | ||
| PM (TTM) | 8.72% | ||
| GM | 90.79% |
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.
Compared to 1 year ago, CASS has less shares outstanding
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 -0.66. This is a bad value and indicates that CASS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.66, CASS is not doing good in the industry: 71.00% of the companies in the same industry are doing better.
CASS has a debt to FCF ratio of 24.20. This is a negative value and a sign of low solvency as CASS would need 24.20 years to pay back of all of its debts.
The Debt to FCF ratio of CASS (24.20) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.13 is on the high side and indicates that CASS has dependencies on debt financing.
CASS's Debt to Equity ratio of 3.13 is on the low side compared to the rest of the industry. CASS is outperformed by 74.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.13 | ||
| Debt/FCF | 24.2 | ||
| Altman-Z | -0.66 |
ROIC/WACC0.29
WACC6.82%
2.3 Liquidity
A Current Ratio of 0.04 indicates that CASS may have some problems paying its short term obligations.
CASS's Current ratio of 0.04 is on the low side compared to the rest of the industry. CASS is outperformed by 81.00% of its industry peers.
A Quick Ratio of 0.04 indicates that CASS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.04, CASS is doing worse than 81.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
CASS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.59%.
CASS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.64% yearly.
Looking at the last year, CASS shows a small growth in Revenue. The Revenue has grown by 3.13% in the last year.
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)-30.59%
EPS 3Y-11.39%
EPS 5Y-7.64%
EPS Q2Q%26.92%
Revenue 1Y (TTM)3.13%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
CASS is valuated quite expensively with a Price/Earnings ratio of 27.97.
Based on the Price/Earnings ratio, CASS is valued a bit more expensive than 68.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.19. CASS is around the same levels.
A Price/Forward Earnings ratio of 13.49 indicates a correct valuation of CASS.
CASS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.13. CASS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.97 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
83.00% of the companies in the same industry are more expensive than CASS, based on the Enterprise Value to EBITDA ratio.
CASS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CASS is cheaper than 63.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.18 | ||
| EV/EBITDA | 7.35 |
4.3 Compensation for Growth
The 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 2.91%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.90, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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 85.89% 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.
DP85.89%
EPS Next 2Y51.13%
EPS Next 3YN/A
NASDAQ:CASS (5/30/2025, 11:23:10 AM)
42.52
-0.27 (-0.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners66.72%
Inst Owner Change1.23%
Ins Owners3.04%
Ins Owner Change5.96%
Market Cap568.07M
Analysts82.86
Price Target46.92 (10.35%)
Short Float %1.32%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend1.22
Dividend Growth(5Y)3.04%
DP85.89%
Div Incr Years23
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-42.65%
Min EPS beat(2)-58.82%
Max EPS beat(2)-26.47%
EPS beat(4)0
Avg EPS beat(4)-34.92%
Min EPS beat(4)-58.82%
Max EPS beat(4)-13.59%
EPS beat(8)1
Avg EPS beat(8)-21.42%
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)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)1.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-4.71%
Max Revenue beat(4)1.14%
Revenue beat(8)4
Avg Revenue beat(8)-1.12%
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)0%
EPS NY rev (1m)2.67%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.97 | ||
| Fwd PE | 13.49 | ||
| P/S | 2.58 | ||
| P/FCF | 19.18 | ||
| P/OCF | 14.58 | ||
| P/B | 2.48 | ||
| P/tB | 2.8 | ||
| EV/EBITDA | 7.35 |
EPS(TTM)1.52
EY3.57%
EPS(NY)3.15
Fwd EY7.41%
FCF(TTM)2.22
FCFY5.21%
OCF(TTM)2.92
OCFY6.86%
SpS16.46
BVpS17.14
TBVpS15.17
PEG (NY)0.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 8.37% | ||
| ROCE | 8.95% | ||
| ROIC | 1.96% | ||
| ROICexc | 3.03% | ||
| ROICexgc | 6.76% | ||
| OM | 11.01% | ||
| PM (TTM) | 8.72% | ||
| GM | 90.79% | ||
| FCFM | 13.47% |
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 | 3.13 | ||
| Debt/FCF | 24.2 | ||
| Debt/EBITDA | 23.73 | ||
| Cap/Depr | 155.82% | ||
| Cap/Sales | 4.24% | ||
| Interest Coverage | 1.2 | ||
| Cash Conversion | 128.95% | ||
| Profit Quality | 154.53% | ||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z | -0.66 |
F-Score6
WACC6.82%
ROIC/WACC0.29
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)3.13%
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-35.17%
EBIT growth 3Y-10.52%
EBIT growth 5Y-8.37%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y30.99%
FCF growth 3Y-0.62%
FCF growth 5Y-5.55%
OCF growth 1Y5.45%
OCF growth 3Y4.08%
OCF growth 5Y-1.56%