CASS INFORMATION SYSTEMS INC (CASS) Stock Fundamental Analysis
NASDAQ:CASS - US14808P1093 - Common Stock
43.45 USD
+1.53 (+3.65%)
43.45 USD
0 (0%)
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. CASS has a medium profitability rating, but doesn't score so well on its financial health evaluation. CASS has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years CASS has always been profitable.
CASS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.09%, CASS is in line with its industry, outperforming 44.00% of the companies in the same industry.
CASS has a Return On Equity (10.53%) which is in line with its industry peers.
CASS's Return On Invested Capital of 2.35% is in line compared to the rest of the industry. CASS outperforms 47.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CASS is below the industry average of 7.90%.
| 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
With a Profit Margin value of 12.04%, CASS perfoms like the industry average, outperforming 49.00% of the companies in the same industry.
CASS's Profit Margin has declined in the last couple of years.
CASS's Operating Margin of 12.61% is in line compared to the rest of the industry. CASS outperforms 46.00% of its industry peers.
CASS's Operating Margin has declined in the last couple of years.
CASS has a Gross Margin of 91.43%. This is amongst the best in 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 | 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.
CASS has less shares outstanding than it did 1 year ago.
CASS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CASS is higher compared to a year ago.
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 has a worse Altman-Z score (-0.64) than 71.00% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 20.32, CASS is in line with its industry, outperforming 52.00% of the companies in the same industry.
A Debt/Equity ratio of 2.63 is on the high side and indicates that CASS has dependencies on debt financing.
CASS has a Debt to Equity ratio of 2.63. This is in the lower half of the industry: CASS underperforms 71.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.63 | ||
| Debt/FCF | 20.32 | ||
| Altman-Z | -0.64 |
ROIC/WACC0.35
WACC6.79%
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's Current ratio of 0.03 is on the low side compared to the rest of the industry. CASS is outperformed by 82.00% 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.
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 by -6.53% in the last year.
The Earnings Per Share has been decreasing by -7.64% on average over the past years.
The Revenue has decreased by -3.57% in the past year.
CASS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.21% yearly.
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
CASS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.28% yearly.
Based on estimates for the next years, CASS will show a small growth in Revenue. The Revenue will grow by 2.99% on average per year.
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.
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
The Price/Earnings ratio is 23.36, which indicates a rather expensive current valuation of CASS.
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 (27.24), we can say CASS is valued inline with the index average.
The Price/Forward Earnings ratio is 13.97, which indicates a correct valuation of CASS.
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 rather cheap valuation when compared to the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.36 | ||
| Fwd PE | 13.97 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CASS.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CASS indicates a somewhat cheap valuation: CASS is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.43 | ||
| EV/EBITDA | 17.01 |
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)0.25
PEG (5Y)N/A
EPS Next 2Y50.14%
EPS Next 3Y37.28%
5. Dividend
5.1 Amount
CASS has a Yearly Dividend Yield of 2.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.17, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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 65.41% of its income as dividend. 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%
43.45
+1.53 (+3.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners68%
Inst Owner Change18.55%
Ins Owners3.19%
Ins Owner Change2.71%
Market Cap574.41M
Analysts82.86
Price Target51 (17.38%)
Short Float %1.36%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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)8.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.29%
EPS NY rev (1m)-2.23%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.88%
Revenue NY rev (1m)-0.93%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.36 | ||
| Fwd PE | 13.97 | ||
| P/S | 2.73 | ||
| P/FCF | 18.43 | ||
| P/OCF | 14.84 | ||
| P/B | 2.39 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 17.01 |
EPS(TTM)1.86
EY4.28%
EPS(NY)3.11
Fwd EY7.16%
FCF(TTM)2.36
FCFY5.43%
OCF(TTM)2.93
OCFY6.74%
SpS15.93
BVpS18.22
TBVpS16.67
PEG (NY)0.25
PEG (5Y)N/A
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%
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 | 2.63 | ||
| 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 | -0.64 |
F-Score6
WACC6.79%
ROIC/WACC0.35
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%