Cadence Bank
Cadence Bank Fundamental Analysis
Cadence Bank (CADE-PA) shows moderate financial fundamentals with a PE ratio of 14.66, profit margin of 18.74%, and ROE of 9.09%. The company generates $2.9B in annual revenue with strong year-over-year growth of 32.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CADE-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakCADE-PA struggles to generate sufficient returns from assets.
Valuation Score
ModerateCADE-PA shows balanced valuation metrics.
Growth Score
ModerateCADE-PA shows steady but slowing expansion.
Financial Health Score
ModerateCADE-PA shows balanced financial health with some risks.
Profitability Score
ModerateCADE-PA maintains healthy but balanced margins.
Key Financial Metrics
Is CADE-PA Expensive or Cheap?
P/E Ratio
CADE-PA trades at 14.66 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CADE-PA's PEG of 6.79 indicates potential overvaluation.
Price to Book
The market values Cadence Bank at 1.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.13 times EBITDA. This is generally considered low.
How Well Does CADE-PA Make Money?
Net Profit Margin
For every $100 in sales, Cadence Bank keeps $18.74 as profit after all expenses.
Operating Margin
Core operations generate 23.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.09 in profit for every $100 of shareholder equity.
ROA
Cadence Bank generates $1.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cadence Bank produces operating cash flow of $575.57M, showing steady but balanced cash generation.
Free Cash Flow
Cadence Bank generates strong free cash flow of $500.01M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.68 in free cash annually.
FCF Yield
CADE-PA converts 6.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How CADE-PA Stacks Against Its Sector Peers
| Metric | CADE-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.66 | 18.86 | Better (Cheaper) |
| ROE | 9.09% | 847.00% | Weak |
| Net Margin | 18.74% | 4202.00% | Weak |
| Debt/Equity | 0.35 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.07 | 667.17 | Weak Liquidity |
| ROA | 1.02% | -21543.00% (disorted) | Weak |
CADE-PA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cadence Bank's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.84%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
24.19%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
98.68%
Industry Style: Value, Dividend, Cyclical
High Growth