Pathward Financial, Inc.
Pathward Financial, Inc. Fundamental Analysis
Pathward Financial, Inc. (CASH) shows strong financial fundamentals with a PE ratio of 11.69, profit margin of 26.37%, and ROE of 22.83%. The company generates $0.7B in annual revenue with weak year-over-year growth of 2.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CASH's fundamental strength across five key dimensions:
Efficiency Score
WeakCASH struggles to generate sufficient returns from assets.
Valuation Score
ModerateCASH shows balanced valuation metrics.
Growth Score
WeakCASH faces weak or negative growth trends.
Financial Health Score
ModerateCASH shows balanced financial health with some risks.
Profitability Score
ExcellentCASH achieves industry-leading margins.
Key Financial Metrics
Is CASH Expensive or Cheap?
P/E Ratio
CASH trades at 11.69 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CASH's PEG of 2.72 indicates potential overvaluation.
Price to Book
The market values Pathward Financial, Inc. at 2.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.80 times EBITDA. This is generally considered low.
How Well Does CASH Make Money?
Net Profit Margin
For every $100 in sales, Pathward Financial, Inc. keeps $26.37 as profit after all expenses.
Operating Margin
Core operations generate 31.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.83 in profit for every $100 of shareholder equity.
ROA
Pathward Financial, Inc. generates $2.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pathward Financial, Inc. generates strong operating cash flow of $631.39M, reflecting robust business health.
Free Cash Flow
Pathward Financial, Inc. generates strong free cash flow of $422.40M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $18.91 in free cash annually.
FCF Yield
CASH converts 18.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How CASH Stacks Against Its Sector Peers
| Metric | CASH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.69 | 19.21 | Better (Cheaper) |
| ROE | 22.83% | 817.00% | Weak |
| Net Margin | 26.37% | -464.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 12.73 | Strong (Low Leverage) |
| Current Ratio | 0.21 | 659.50 | Weak Liquidity |
| ROA | 2.53% | -24814.00% (disorted) | Weak |
CASH outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pathward Financial, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
118.88%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
170.46%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
46.96%
Industry Style: Value, Dividend, Cyclical
High Growth