CASS INFORMATION SYSTEMS INC (CASS) Stock Fundamental Analysis
NASDAQ:CASS - Nasdaq - US14808P1093 - Common Stock - Currency: USD
CASS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. There are concerns on the financial health of CASS while its profitability can be described as average. CASS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CASS had positive earnings in the past year.
CASS had a positive operating cash flow in the past year.
CASS had positive earnings in each of the past 5 years.
CASS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CASS has a Return On Assets of 1.02%. This is comparable to the rest of the industry: CASS outperforms 41.58% of its industry peers.
Looking at the Return On Equity, with a value of 9.67%, CASS is in line with its industry, outperforming 48.51% of the companies in the same industry.
CASS has a Return On Invested Capital of 2.49%. This is comparable to the rest of the industry: CASS outperforms 50.49% of its industry peers.
CASS had an Average Return On Invested Capital over the past 3 years of 3.12%. This is below the industry average of 7.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.02% | ||
| ROE | 9.67% | ||
| ROIC | 2.49% |
ROA(3y)1.12%
ROA(5y)1.13%
ROE(3y)12.79%
ROE(5y)11.93%
ROIC(3y)3.12%
ROIC(5y)3.02%
1.3 Margins
CASS has a Profit Margin of 10.45%. This is comparable to the rest of the industry: CASS outperforms 48.51% of its industry peers.
In the last couple of years the Profit Margin of CASS has declined.
CASS's Operating Margin of 13.09% is in line compared to the rest of the industry. CASS outperforms 46.53% of its industry peers.
CASS's Operating Margin has declined in the last couple of years.
CASS has a Gross Margin of 90.76%. This is amongst the best in the industry. CASS outperforms 93.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.09% | ||
| PM (TTM) | 10.45% | ||
| GM | 90.76% |
OM growth 3Y-17.72%
OM growth 5Y-12.05%
PM growth 3Y-19.53%
PM growth 5Y-12.47%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CASS is destroying value.
Compared to 1 year ago, CASS has about the same amount of shares outstanding.
The number of shares outstanding for CASS has been reduced compared to 5 years ago.
The debt/assets ratio for CASS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.62, we must say that CASS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.62, CASS is not doing good in the industry: 69.31% of the companies in the same industry are doing better.
The Debt to FCF ratio of CASS is 43.44, which is on the high side as it means it would take CASS, 43.44 years of fcf income to pay off all of its debts.
CASS has a Debt to FCF ratio (43.44) which is in line with its industry peers.
CASS has a Debt/Equity ratio of 2.76. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CASS (2.76) is worse than 73.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | 43.44 | ||
| Altman-Z | -0.62 |
ROIC/WACC0.28
WACC8.87%
2.3 Liquidity
A Current Ratio of 0.03 indicates that CASS may have some problems paying its short term obligations.
With a Current ratio value of 0.03, CASS is not doing good in the industry: 81.19% of the companies in the same industry are doing better.
CASS has a Quick Ratio of 0.03. This is a bad value and indicates that CASS is not financially healthy enough and could expect problems in meeting its short term obligations.
CASS has a Quick ratio of 0.03. This is amonst the worse of the industry: CASS underperforms 81.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 |
3. Growth
3.1 Past
The earnings per share for CASS have decreased strongly by -36.70% in the last year.
CASS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.64% yearly.
Looking at the last year, CASS shows a small growth in Revenue. The Revenue has grown by 0.96% in the last year.
CASS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.18% yearly.
EPS 1Y (TTM)-36.7%
EPS 3Y-11.4%
EPS 5Y-7.64%
EPS Q2Q%-45.9%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y8.75%
Revenue growth 5Y4.18%
Sales Q2Q%-0.72%
3.2 Future
CASS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 52.59% yearly.
Based on estimates for the next years, CASS will show a small growth in Revenue. The Revenue will grow by 7.20% on average per year.
EPS Next Y93.65%
EPS Next 2Y52.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.72%
Revenue Next 2Y7.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
CASS is valuated quite expensively with a Price/Earnings ratio of 31.29.
64.36% of the companies in the same industry are cheaper than CASS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, CASS is valued at the same level.
A Price/Forward Earnings ratio of 16.16 indicates a correct valuation of CASS.
The rest of the industry has a similar Price/Forward Earnings ratio as CASS.
CASS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.29 | ||
| Fwd PE | 16.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CASS indicates a somewhat cheap valuation: CASS is cheaper than 70.30% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CASS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.87 | ||
| EV/EBITDA | 10.81 |
4.3 Compensation for Growth
CASS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CASS's earnings are expected to grow with 52.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y52.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.80%, CASS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.84, CASS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, CASS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
5.2 History
The dividend of CASS has a limited annual growth rate of 3.61%.
CASS has been paying a dividend for at least 10 years, so it has a reliable track record.
CASS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.61%
Div Incr Years23
Div Non Decr Years28
5.3 Sustainability
71.06% of the earnings are spent on dividend by CASS. This is not a sustainable payout ratio.
CASS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.06%
EPS Next 2Y52.59%
EPS Next 3YN/A
43.18
-1.16 (-2.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners66.72%
Inst Owner Change0.41%
Ins Owners3.04%
Ins Owner Change3.75%
Market Cap585.95M
Analysts82.86
Price Target47.94 (11.02%)
Short Float %1.33%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend1.17
Dividend Growth(5Y)3.61%
DP71.06%
Div Incr Years23
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-49.81%
Min EPS beat(2)-58.82%
Max EPS beat(2)-40.81%
EPS beat(4)1
Avg EPS beat(4)-22.16%
Min EPS beat(4)-58.82%
Max EPS beat(4)24.59%
EPS beat(8)1
Avg EPS beat(8)-19.04%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.78%
Min Revenue beat(2)-4.71%
Max Revenue beat(2)1.14%
Revenue beat(4)2
Avg Revenue beat(4)-1.19%
Min Revenue beat(4)-4.71%
Max Revenue beat(4)2.91%
Revenue beat(8)5
Avg Revenue beat(8)-0.82%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)8.89%
EPS NQ rev (1m)2.33%
EPS NQ rev (3m)2.33%
EPS NY rev (1m)3.56%
EPS NY rev (3m)3.56%
Revenue NQ rev (1m)1%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.29 | ||
| Fwd PE | 16.16 | ||
| P/S | 2.66 | ||
| P/FCF | 38.87 | ||
| P/OCF | 21.01 | ||
| P/B | 2.47 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 10.81 |
EPS(TTM)1.38
EY3.2%
EPS(NY)2.67
Fwd EY6.19%
FCF(TTM)1.11
FCFY2.57%
OCF(TTM)2.05
OCFY4.76%
SpS16.21
BVpS17.51
TBVpS16.03
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.02% | ||
| ROE | 9.67% | ||
| ROCE | 10.7% | ||
| ROIC | 2.49% | ||
| ROICexc | 3.32% | ||
| ROICexgc | 6.54% | ||
| OM | 13.09% | ||
| PM (TTM) | 10.45% | ||
| GM | 90.76% | ||
| FCFM | 6.85% |
ROA(3y)1.12%
ROA(5y)1.13%
ROE(3y)12.79%
ROE(5y)11.93%
ROIC(3y)3.12%
ROIC(5y)3.02%
ROICexc(3y)4.35%
ROICexc(5y)4.3%
ROICexgc(3y)10.71%
ROICexgc(5y)10.3%
ROCE(3y)13.73%
ROCE(5y)12.62%
ROICexcg growth 3Y7.15%
ROICexcg growth 5Y-16.86%
ROICexc growth 3Y0.18%
ROICexc growth 5Y-11.84%
OM growth 3Y-17.72%
OM growth 5Y-12.05%
PM growth 3Y-19.53%
PM growth 5Y-12.47%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | 43.44 | ||
| Debt/EBITDA | 19.07 | ||
| Cap/Depr | 232.06% | ||
| Cap/Sales | 5.82% | ||
| Interest Coverage | 1.42 | ||
| Cash Conversion | 81.22% | ||
| Profit Quality | 65.58% | ||
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 | ||
| Altman-Z | -0.62 |
F-Score6
WACC8.87%
ROIC/WACC0.28
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.7%
EPS 3Y-11.4%
EPS 5Y-7.64%
EPS Q2Q%-45.9%
EPS Next Y93.65%
EPS Next 2Y52.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.96%
Revenue growth 3Y8.75%
Revenue growth 5Y4.18%
Sales Q2Q%-0.72%
Revenue Next Year6.72%
Revenue Next 2Y7.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-24.5%
EBIT growth 3Y-10.52%
EBIT growth 5Y-8.37%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-48.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-30.6%
OCF growth 3YN/A
OCF growth 5YN/A