CASS INFORMATION SYSTEMS INC (CASS) Stock Fundamental Analysis
NASDAQ:CASS - Nasdaq - US14808P1093 - Common Stock - Currency: USD
CASS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CASS was profitable.
CASS had a positive operating cash flow in the past year.
In the past 5 years CASS has always been profitable.
Each year in the past 5 years CASS had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.90%, CASS perfoms like the industry average, outperforming 43.00% of the companies in the same industry.
CASS has a Return On Equity of 8.96%. This is comparable to the rest of the industry: CASS outperforms 49.00% of its industry peers.
CASS has a Return On Invested Capital (2.23%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CASS is significantly below the industry average of 11.84%.
| 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
Looking at the Profit Margin, with a value of 9.70%, CASS is in line with its industry, outperforming 49.00% of the companies in the same industry.
CASS's Profit Margin has declined in the last couple of years.
CASS has a Operating Margin of 12.06%. This is comparable to the rest of the industry: CASS outperforms 42.00% of its industry peers.
In the last couple of years the Operating Margin of CASS has declined.
CASS has a better Gross Margin (91.13%) than 94.00% of its industry peers.
CASS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.06% | ||
| 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
CASS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 -0.63. 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 -0.63, CASS is not doing good in the industry: 73.00% of the companies in the same industry are doing better.
The Debt to FCF ratio of CASS is 14.99, which is on the high side as it means it would take CASS, 14.99 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CASS (14.99) 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.
Looking at the Debt to Equity ratio, with a value of 2.72, CASS is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 14.99 | ||
| Altman-Z | -0.63 |
ROIC/WACC0.41
WACC5.48%
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 83.00% 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 83.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 |
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%.
The Earnings Per Share has been decreasing by -7.64% on average over the past years.
CASS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.20%.
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
The Earnings Per Share is expected to grow by 51.13% 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 2.26% 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
Based on the Price/Earnings ratio of 28.59, the valuation of CASS can be described as expensive.
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 27.15.
A Price/Forward Earnings ratio of 13.79 indicates a correct valuation of CASS.
CASS's Price/Forward Earnings ratio is in line with the industry average.
CASS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 13.79 |
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 66.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.68 | ||
| EV/EBITDA | 17.82 |
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 51.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y51.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CASS has a Yearly Dividend Yield of 2.89%.
CASS's Dividend Yield is a higher than the industry average which is at 4.97.
CASS's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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
43.45
-0.75 (-1.7%)
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 Cap580.49M
Analysts82.86
Price Target46.92 (7.99%)
Short Float %1.52%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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 | 28.59 | ||
| Fwd PE | 13.79 | ||
| P/S | 2.68 | ||
| P/FCF | 13.68 | ||
| P/OCF | 11.45 | ||
| P/B | 2.48 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 17.82 |
EPS(TTM)1.52
EY3.5%
EPS(NY)3.15
Fwd EY7.25%
FCF(TTM)3.18
FCFY7.31%
OCF(TTM)3.79
OCFY8.73%
SpS16.2
BVpS17.53
TBVpS15.98
PEG (NY)0.29
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 | -0.63 |
F-Score6
WACC5.48%
ROIC/WACC0.41
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%