Cass Information Systems, Inc. Fundamental Analysis (NASDAQ: CASS)
Cass Information Systems, Inc. Fundamental Analysis (NASDAQ: CASS)
Cass Information Systems, Inc. (NASDAQ: CASS) shows moderate financial fundamentals with a PE ratio of 20.55, profit margin of 18.08%, and ROE of 15.09%. The company generates $0.2B in annual revenue with weak year-over-year growth of -13.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 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
ModerateCASS shows steady but slowing expansion.
Financial Health Score
ExcellentCASS maintains a strong and stable balance sheet.
Profitability Score
ExcellentCASS achieves industry-leading margins.
Key Financial Metrics
Is CASS Expensive or Cheap?
P/E Ratio
CASS trades at 20.55 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CASS's PEG of 0.42 indicates potential undervaluation.
Price to Book
The market values Cass Information Systems, Inc. at 3.05 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.33 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 $18.08 as profit after all expenses.
Operating Margin
Core operations generate 22.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.09 in profit for every $100 of shareholder equity.
ROA
Cass Information Systems, Inc. generates $1.46 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 $48.90M, showing steady but balanced cash generation.
Free Cash Flow
Cass Information Systems, Inc. generates strong free cash flow of $42.12M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.27 in free cash annually.
FCF Yield
CASS converts 5.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.38
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
0.02
vs 25 benchmark
How CASS Stacks Against Its Sector Peers
| Metric | CASS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.55 | 30.97 | Better (Cheaper) |
| ROE | 15.09% | 1108.00% | Weak |
| Net Margin | 18.08% | -21241.00% (disorted) | Strong |
| Debt/Equity | 0.33 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 3.38 | 21.73 | Strong Liquidity |
| ROA | 1.46% | -1325740.00% (disorted) | Weak |
CASS outperforms its industry in 4 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
40.79%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
52.22%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-14.49%
Industry Style: Cyclical, Value, Infrastructure
Declining