CASS INFORMATION SYSTEMS INC (CASS)

US14808P1093 - Common Stock

48.17  +0.74 (+1.56%)

After market: 48.17 0 (0%)

Fundamental Rating

4

CASS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 102 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 is not valued too expensively and it also shows a decent growth rate.



5

1. Profitability

1.1 Basic Checks

CASS had positive earnings in the past year.
In the past year CASS had a positive cash flow from operations.
CASS had positive earnings in each of the past 5 years.
Each year in the past 5 years CASS had a positive operating cash flow.

1.2 Ratios

CASS has a Return On Assets of 1.21%. This is comparable to the rest of the industry: CASS outperforms 48.04% of its industry peers.
The Return On Equity of CASS (13.08%) is better than 65.69% of its industry peers.
CASS has a Return On Invested Capital of 3.46%. This is comparable to the rest of the industry: CASS outperforms 59.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CASS is below the industry average of 7.81%.
Industry RankSector Rank
ROA 1.21%
ROE 13.08%
ROIC 3.46%
ROA(3y)1.23%
ROA(5y)1.31%
ROE(3y)13.88%
ROE(5y)12.75%
ROIC(3y)3.5%
ROIC(5y)3.51%

1.3 Margins

CASS's Profit Margin of 14.10% is fine compared to the rest of the industry. CASS outperforms 64.71% of its industry peers.
CASS's Profit Margin has declined in the last couple of years.
The Operating Margin of CASS (17.52%) is better than 61.76% of its industry peers.
In the last couple of years the Operating Margin of CASS has declined.
Looking at the Gross Margin, with a value of 92.38%, CASS belongs to the top of the industry, outperforming 95.10% of the companies in the same industry.
In the last couple of years the Gross Margin of CASS has remained more or less at the same level.
Industry RankSector Rank
OM 17.52%
PM (TTM) 14.1%
GM 92.38%
OM growth 3Y-5.04%
OM growth 5Y-6.01%
PM growth 3Y-6.08%
PM growth 5Y-6.69%
GM growth 3Y-2.1%
GM growth 5Y-1.09%

1

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.
Compared to 5 years ago, CASS has less shares outstanding
CASS has a worse debt/assets ratio than last year.

2.2 Solvency

CASS has an Altman-Z score of -0.62. 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 -0.62, CASS is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
CASS has a debt to FCF ratio of 27.26. This is a negative value and a sign of low solvency as CASS would need 27.26 years to pay back of all of its debts.
CASS has a Debt to FCF ratio (27.26) which is in line with its industry peers.
A Debt/Equity ratio of 2.68 is on the high side and indicates that CASS has dependencies on debt financing.
CASS's Debt to Equity ratio of 2.68 is on the low side compared to the rest of the industry. CASS is outperformed by 76.47% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.68
Debt/FCF 27.26
Altman-Z -0.62
ROIC/WACC0.54
WACC6.43%

2.3 Liquidity

A Current Ratio of 0.06 indicates that CASS may have some problems paying its short term obligations.
The Current ratio of CASS (0.06) is worse than 81.37% of its industry peers.
A Quick Ratio of 0.06 indicates that CASS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.06, CASS is doing worse than 81.37% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.06
Quick Ratio 0.06

5

3. Growth

3.1 Past

CASS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.78%.
Measured over the past 5 years, CASS shows a small growth in Earnings Per Share. The EPS has been growing by 1.50% on average per year.
Looking at the last year, CASS shows a quite strong growth in Revenue. The Revenue has grown by 13.84% in the last year.
CASS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.00% yearly.
EPS 1Y (TTM)-13.78%
EPS 3Y7.94%
EPS 5Y1.5%
EPS growth Q2Q-8.96%
Revenue 1Y (TTM)13.84%
Revenue growth 3Y12.92%
Revenue growth 5Y7%
Revenue growth Q2Q7.03%

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 23.50% on average per year.
CASS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.39% yearly.
EPS Next Y28.2%
EPS Next 2Y23.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.14%
Revenue Next 2Y7.39%
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 stable.

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 22.10, the valuation of CASS can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as CASS.
Compared to an average S&P500 Price/Earnings ratio of 26.48, CASS is valued at the same level.
Based on the Price/Forward Earnings ratio of 17.24, the valuation of CASS can be described as rather expensive.
CASS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CASS to the average of the S&P500 Index (22.79), we can say CASS is valued slightly cheaper.
Industry RankSector Rank
PE 22.1
Fwd PE 17.24

4.2 Price Multiples

CASS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CASS is cheaper than 87.25% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CASS is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 29.04
EV/EBITDA 6.71

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.
CASS's earnings are expected to grow with 23.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)14.77
EPS Next 2Y23.5%
EPS Next 3YN/A

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.55%, CASS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.47, CASS pays a bit more dividend than its industry peers.
CASS's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 2.55%

5.2 History

The dividend of CASS has a limited annual growth rate of 3.61%.
CASS has been paying a dividend for at least 10 years, so it has a reliable track record.
CASS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.61%
Div Incr Years16
Div Non Decr Years16

5.3 Sustainability

53.09% of the earnings are spent on dividend by CASS. This is a bit on the high side, but may be sustainable.
CASS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP53.09%
EPS Next 2Y23.5%
EPS Next 3YN/A

CASS INFORMATION SYSTEMS INC

NASDAQ:CASS (3/28/2024, 8:00:53 PM)

After market: 48.17 0 (0%)

48.17

+0.74 (+1.56%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap656.56M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.55%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 22.1
Fwd PE 17.24
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.78
PEG (5Y)14.77
Profitability
Industry RankSector Rank
ROA 1.21%
ROE 13.08%
ROCE
ROIC
ROICexc
ROICexgc
OM 17.52%
PM (TTM) 14.1%
GM 92.38%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.09
Health
Industry RankSector Rank
Debt/Equity 2.68
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.06
Quick Ratio 0.06
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-13.78%
EPS 3Y7.94%
EPS 5Y
EPS growth Q2Q
EPS Next Y28.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.84%
Revenue growth 3Y12.92%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y