CASS INFORMATION SYSTEMS INC (CASS) Stock Fundamental Analysis
USA - NASDAQ:CASS - US14808P1093 - Common Stock
38.04 USD
-0.06 (-0.16%)
38.04 USD
0 (0%)
Overall CASS gets a fundamental rating of 3 out of 10. We evaluated CASS against 99 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years CASS had a positive operating cash flow.
1.2 Ratios
CASS has a Return On Assets (1.09%) which is comparable to the rest of the industry.
CASS has a Return On Equity (10.53%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 2.35%, CASS is in line with its industry, outperforming 48.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CASS is below the industry average of 7.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.09% | ||
| ROE | 10.53% | ||
| ROIC | 2.35% |
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 has a Profit Margin of 12.04%. This is comparable to the rest of the industry: CASS outperforms 57.58% of its industry peers.
CASS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.61%, CASS is in line with its industry, outperforming 50.51% of the companies in the same industry.
In the last couple of years the Operating Margin of CASS has declined.
The Gross Margin of CASS (91.43%) is better than 92.93% 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 | 12.61% | ||
| PM (TTM) | 12.04% | ||
| GM | 91.43% |
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.
The number of shares outstanding for CASS has been reduced compared to 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 -0.66. 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: 69.70% of the companies in the same industry are doing better.
CASS has a debt to FCF ratio of 20.32. This is a negative value and a sign of low solvency as CASS would need 20.32 years to pay back of all of its debts.
The Debt to FCF ratio of CASS (20.32) is comparable to the rest of the industry.
CASS has a Debt/Equity ratio of 2.63. This is a high value indicating a heavy dependency on external financing.
CASS's Debt to Equity ratio of 2.63 is on the low side compared to the rest of the industry. CASS is outperformed by 70.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.63 | ||
| Debt/FCF | 20.32 | ||
| Altman-Z | -0.66 |
ROIC/WACC0.46
WACC5.09%
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.
The Current ratio of CASS (0.03) is worse than 82.83% of its industry peers.
A Quick Ratio of 0.03 indicates that CASS may have some problems paying its short term obligations.
CASS has a Quick ratio of 0.03. This is amonst the worse of the industry: CASS underperforms 82.83% 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.
CASS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.64% yearly.
CASS shows a decrease in Revenue. In the last year, the revenue decreased by -3.57%.
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)-3.57%
Revenue growth 3Y12.32%
Revenue growth 5Y6.21%
Sales Q2Q%-8.63%
3.2 Future
The Earnings Per Share is expected to grow by 37.28% on average over the next years. This is a very strong growth
CASS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.99% yearly.
EPS Next Y94.39%
EPS Next 2Y50.14%
EPS Next 3Y37.28%
EPS Next 5YN/A
Revenue Next Year-3.35%
Revenue Next 2Y2.08%
Revenue Next 3Y2.99%
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
Based on the Price/Earnings ratio of 20.45, the valuation of CASS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CASS is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CASS to the average of the S&P500 Index (27.57), we can say CASS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.23, CASS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CASS is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, CASS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.45 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
CASS's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CASS indicates a somewhat cheap valuation: CASS is cheaper than 64.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.14 | ||
| EV/EBITDA | 14.89 |
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 37.28% in the coming years.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y50.14%
EPS Next 3Y37.28%
5. Dividend
5.1 Amount
CASS has a Yearly Dividend Yield of 3.27%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.15, CASS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, CASS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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
65.41% of the earnings are spent on dividend by CASS. This is not a sustainable payout ratio.
The dividend of CASS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP65.41%
EPS Next 2Y50.14%
EPS Next 3Y37.28%
38.04
-0.06 (-0.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners62.88%
Inst Owner Change-0.07%
Ins Owners3.25%
Ins Owner Change0.47%
Market Cap502.89M
Revenue(TTM)210.66M
Net Income(TTM)25.35M
Analysts82.86
Price Target51 (34.07%)
Short Float %1.53%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
Yearly Dividend1.22
Dividend Growth(5Y)3.04%
DP65.41%
Div Incr Years23
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.14%
Min EPS beat(2)-10.13%
Max EPS beat(2)7.84%
EPS beat(4)1
Avg EPS beat(4)-21.9%
Min EPS beat(4)-58.82%
Max EPS beat(4)7.84%
EPS beat(8)2
Avg EPS beat(8)-15.14%
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)-13.15%
Min Revenue beat(2)-14.65%
Max Revenue beat(2)-11.64%
Revenue beat(4)1
Avg Revenue beat(4)-6.34%
Min Revenue beat(4)-14.65%
Max Revenue beat(4)1.14%
Revenue beat(8)3
Avg Revenue beat(8)-3.86%
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.45 | ||
| Fwd PE | 12.23 | ||
| P/S | 2.39 | ||
| P/FCF | 16.14 | ||
| P/OCF | 12.99 | ||
| P/B | 2.09 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 14.89 |
EPS(TTM)1.86
EY4.89%
EPS(NY)3.11
Fwd EY8.18%
FCF(TTM)2.36
FCFY6.2%
OCF(TTM)2.93
OCFY7.7%
SpS15.93
BVpS18.22
TBVpS16.67
PEG (NY)0.22
PEG (5Y)N/A
Graham Number27.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.09% | ||
| ROE | 10.53% | ||
| ROCE | 9.82% | ||
| ROIC | 2.35% | ||
| ROICexc | 2.36% | ||
| ROICexgc | 3.54% | ||
| OM | 12.61% | ||
| PM (TTM) | 12.04% | ||
| GM | 91.43% | ||
| FCFM | 14.79% |
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%
ROICexgc growth 3Y8.48%
ROICexgc 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 | 2.63 | ||
| Debt/FCF | 20.32 | ||
| Debt/EBITDA | 18.91 | ||
| Cap/Depr | 109.24% | ||
| Cap/Sales | 3.58% | ||
| Interest Coverage | 1.47 | ||
| Cash Conversion | 115.62% | ||
| Profit Quality | 122.91% | ||
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 | ||
| Altman-Z | -0.66 |
F-Score6
WACC5.09%
ROIC/WACC0.46
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 Y94.39%
EPS Next 2Y50.14%
EPS Next 3Y37.28%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.57%
Revenue growth 3Y12.32%
Revenue growth 5Y6.21%
Sales Q2Q%-8.63%
Revenue Next Year-3.35%
Revenue Next 2Y2.08%
Revenue Next 3Y2.99%
Revenue Next 5YN/A
EBIT growth 1Y-22.58%
EBIT growth 3Y-10.52%
EBIT growth 5Y-8.37%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y8.77%
FCF growth 3Y-0.62%
FCF growth 5Y-5.55%
OCF growth 1Y3.16%
OCF growth 3Y4.08%
OCF growth 5Y-1.56%