Cadence Bank Fundamental Analysis (NYSE: CADE)
Cadence Bank (NYSE: CADE) shows weak financial fundamentals with a PE ratio of 19.68, profit margin of 18.45%, and ROE of 6.76%. The company generates $2.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CADE's fundamental strength across five key dimensions:
Efficiency Score
WeakCADE struggles to generate sufficient returns from assets.
Valuation Score
ModerateCADE shows balanced valuation metrics.
Growth Score
ModerateCADE shows steady but slowing expansion.
Financial Health Score
ModerateCADE shows balanced financial health with some risks.
Profitability Score
ModerateCADE maintains healthy but balanced margins.
Key Financial Metrics
Is CADE Expensive or Cheap?
P/E Ratio
CADE trades at 19.68 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CADE's PEG of 18.43 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 10.21 times EBITDA. This signals the market has high growth expectations.
How Well Does CADE Make Money?
Net Profit Margin
For every $100 in sales, Cadence Bank keeps $18.45 as profit after all expenses.
Operating Margin
Core operations generate 23.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.76 in profit for every $100 of shareholder equity.
ROA
Cadence Bank generates $0.77 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 $332.08M, showing steady but balanced cash generation.
Free Cash Flow
Cadence Bank generates strong free cash flow of $289.10M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.55 in free cash annually.
FCF Yield
CADE converts 3.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
18.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.52
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
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How CADE Stacks Against Its Sector Peers
| Metric | CADE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.68 | 20.38 | Neutral |
| ROE | 6.76% | 633.00% | Weak |
| Net Margin | 18.45% | -532.00% (disorted) | Strong |
| Debt/Equity | 0.35 | 0.89 | Strong (Low Leverage) |
| Current Ratio | 0.07 | 823.98 | Weak Liquidity |
| ROA | 0.77% | 72.00% | Weak |
CADE outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, 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
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical