Cass Information Systems, Inc.
Cass Information Systems, Inc. Fundamental Analysis
Cass Information Systems, Inc. (CASS) shows moderate financial fundamentals with a PE ratio of 16.01, profit margin of 17.25%, and ROE of 14.61%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 3.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.4/100 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 CASS's fundamental strength across five key dimensions:
Efficiency Score
WeakCASS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCASS trades at attractive valuation levels.
Growth Score
WeakCASS faces weak or negative growth trends.
Financial Health Score
ExcellentCASS maintains a strong and stable balance sheet.
Profitability Score
ModerateCASS maintains healthy but balanced margins.
Key Financial Metrics
Is CASS Expensive or Cheap?
P/E Ratio
CASS trades at 16.01 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CASS's PEG of 1.31 indicates fair valuation.
Price to Book
The market values Cass Information Systems, Inc. at 2.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 21.78 times EBITDA. This signals the market has high growth expectations.
How Well Does CASS Make Money?
Net Profit Margin
For every $100 in sales, Cass Information Systems, Inc. keeps $17.25 as profit after all expenses.
Operating Margin
Core operations generate 19.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.61 in profit for every $100 of shareholder equity.
ROA
Cass Information Systems, Inc. generates $1.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cass Information Systems, Inc. produces operating cash flow of $32.95M, showing steady but balanced cash generation.
Free Cash Flow
Cass Information Systems, Inc. generates strong free cash flow of $27.95M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.14 in free cash annually.
FCF Yield
CASS converts 4.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.010
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How CASS Stacks Against Its Sector Peers
| Metric | CASS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.01 | 26.49 | Better (Cheaper) |
| ROE | 14.61% | 1307.00% | Weak |
| Net Margin | 17.25% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.10 | 10.48 | Neutral |
| ROA | 1.35% | -1549793.00% (disorted) | Weak |
CASS 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 Cass Information Systems, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.51%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-32.60%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-1.16%
Industry Style: Cyclical, Value, Infrastructure
Declining