CASS INFORMATION SYSTEMS INC (CASS) Stock Fundamental Analysis
NASDAQ:CASS - Nasdaq - US14808P1093 - Common Stock - Currency: USD
Overall CASS gets a fundamental rating of 3 out of 10. We evaluated CASS against 100 industry peers in the Financial Services industry. CASS has a medium profitability rating, but doesn't score so well on its financial health evaluation. CASS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CASS had positive earnings in the past year.
In the past year CASS had a positive cash flow from operations.
Each year in the past 5 years CASS has been profitable.
CASS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.90%, CASS is in line with its industry, outperforming 43.00% of the companies in the same industry.
CASS has a Return On Equity (8.96%) which is in line with its industry peers.
CASS's Return On Invested Capital of 2.23% is in line compared to the rest of the industry. CASS outperforms 47.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CASS is significantly below the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 8.96% | ||
| ROIC | 2.23% |
ROA(3y)1.12%
ROA(5y)1.13%
ROE(3y)12.79%
ROE(5y)11.93%
ROIC(3y)3.13%
ROIC(5y)3.02%
1.3 Margins
Looking at the Profit Margin, with a value of 9.70%, CASS is in line with its industry, outperforming 49.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CASS has declined.
CASS's Operating Margin of 12.06% is in line compared to the rest of the industry. CASS outperforms 42.00% of its industry peers.
CASS's Operating Margin has declined in the last couple of years.
The Gross Margin of CASS (91.13%) is better than 94.00% of its industry peers.
In the last couple of years the Gross Margin of CASS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.06% | ||
| PM (TTM) | 9.7% | ||
| GM | 91.13% |
OM growth 3Y-20.33%
OM growth 5Y-13.73%
PM growth 3Y-22.08%
PM growth 5Y-14.14%
GM growth 3Y-2.92%
GM growth 5Y-1.28%
2. Health
2.1 Basic Checks
CASS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CASS has less shares outstanding
Compared to 5 years ago, CASS has less shares outstanding
CASS has a worse debt/assets ratio than last year.
2.2 Solvency
CASS has an Altman-Z score of -0.62. This is a bad value and indicates that CASS is not financially healthy and even has some risk of bankruptcy.
CASS has a Altman-Z score of -0.62. This is in the lower half of the industry: CASS underperforms 73.00% of its industry peers.
CASS has a debt to FCF ratio of 14.99. This is a negative value and a sign of low solvency as CASS would need 14.99 years to pay back of all of its debts.
CASS has a Debt to FCF ratio (14.99) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.72 is on the high side and indicates that CASS has dependencies on debt financing.
CASS has a worse Debt to Equity ratio (2.72) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 14.99 | ||
| Altman-Z | -0.62 |
ROIC/WACC0.32
WACC6.87%
2.3 Liquidity
A Current Ratio of 0.03 indicates that CASS may have some problems paying its short term obligations.
The Current ratio of CASS (0.03) is worse than 83.00% of its industry peers.
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's Quick ratio of 0.03 is on the low side compared to the rest of the industry. CASS is outperformed by 83.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 |
3. Growth
3.1 Past
CASS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.59%.
The Earnings Per Share has been decreasing by -7.64% on average over the past years.
The Revenue has been growing slightly by 0.20% in the past year.
Measured over the past years, CASS shows a small growth in Revenue. The Revenue has been growing by 6.21% on average per year.
EPS 1Y (TTM)-30.59%
EPS 3Y-11.39%
EPS 5Y-7.64%
EPS Q2Q%26.92%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y12.32%
Revenue growth 5Y6.21%
Sales Q2Q%-6.58%
3.2 Future
CASS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.13% yearly.
The Revenue is expected to grow by 2.26% on average over the next years.
EPS Next Y98.83%
EPS Next 2Y51.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.44%
Revenue Next 2Y2.26%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.97, the valuation of CASS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CASS indicates a slightly more expensive valuation: CASS is more expensive than 69.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CASS is valued at the same level.
A Price/Forward Earnings ratio of 13.97 indicates a correct valuation of CASS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CASS is on the same level as its industry peers.
CASS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.97 | ||
| Fwd PE | 13.97 |
4.2 Price Multiples
CASS's Enterprise Value to EBITDA ratio is in line with the industry average.
CASS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CASS is cheaper than 67.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.86 | ||
| EV/EBITDA | 18.1 |
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 51.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y51.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.68%, CASS has a reasonable but not impressive dividend return.
CASS's Dividend Yield is a higher than the industry average which is at 5.00.
CASS's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
5.2 History
The dividend of CASS has a limited annual growth rate of 3.04%.
CASS has been paying a dividend for at least 10 years, so it has a reliable track record.
CASS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.04%
Div Incr Years23
Div Non Decr Years28
5.3 Sustainability
CASS pays out 78.87% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CASS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP78.87%
EPS Next 2Y51.13%
EPS Next 3YN/A
44.03
-0.85 (-1.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners67.95%
Inst Owner Change0%
Ins Owners3.18%
Ins Owner Change5.95%
Market Cap588.24M
Analysts82.86
Price Target46.92 (6.56%)
Short Float %1.73%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Yearly Dividend1.22
Dividend Growth(5Y)3.04%
DP78.87%
Div Incr Years23
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.31%
Min EPS beat(2)-26.47%
Max EPS beat(2)7.84%
EPS beat(4)1
Avg EPS beat(4)-29.56%
Min EPS beat(4)-58.82%
Max EPS beat(4)7.84%
EPS beat(8)2
Avg EPS beat(8)-16.86%
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)0
Avg Revenue beat(2)-5.92%
Min Revenue beat(2)-11.64%
Max Revenue beat(2)-0.2%
Revenue beat(4)1
Avg Revenue beat(4)-3.85%
Min Revenue beat(4)-11.64%
Max Revenue beat(4)1.14%
Revenue beat(8)3
Avg Revenue beat(8)-2.63%
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)-2.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.56%
EPS NY rev (1m)0%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.97 | ||
| Fwd PE | 13.97 | ||
| P/S | 2.72 | ||
| P/FCF | 13.86 | ||
| P/OCF | 11.61 | ||
| P/B | 2.51 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | 18.1 |
EPS(TTM)1.52
EY3.45%
EPS(NY)3.15
Fwd EY7.16%
FCF(TTM)3.18
FCFY7.22%
OCF(TTM)3.79
OCFY8.62%
SpS16.2
BVpS17.53
TBVpS15.98
PEG (NY)0.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 8.96% | ||
| ROCE | 8.78% | ||
| ROIC | 2.23% | ||
| ROICexc | 2.26% | ||
| ROICexgc | 3.37% | ||
| OM | 12.06% | ||
| PM (TTM) | 9.7% | ||
| GM | 91.13% | ||
| FCFM | 19.62% |
ROA(3y)1.12%
ROA(5y)1.13%
ROE(3y)12.79%
ROE(5y)11.93%
ROIC(3y)3.13%
ROIC(5y)3.02%
ROICexc(3y)4.36%
ROICexc(5y)4.3%
ROICexgc(3y)10.79%
ROICexgc(5y)10.35%
ROCE(3y)13.81%
ROCE(5y)12.66%
ROICexcg growth 3Y8.48%
ROICexcg growth 5Y-16.24%
ROICexc growth 3Y0.56%
ROICexc growth 5Y-11.64%
OM growth 3Y-20.33%
OM growth 5Y-13.73%
PM growth 3Y-22.08%
PM growth 5Y-14.14%
GM growth 3Y-2.92%
GM growth 5Y-1.28%
F-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 14.99 | ||
| Debt/EBITDA | 19.62 | ||
| Cap/Depr | 129.8% | ||
| Cap/Sales | 3.81% | ||
| Interest Coverage | 1.36 | ||
| Cash Conversion | 156.26% | ||
| Profit Quality | 202.3% | ||
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 | ||
| Altman-Z | -0.62 |
F-Score6
WACC6.87%
ROIC/WACC0.32
Cap/Depr(3y)189.66%
Cap/Depr(5y)134.25%
Cap/Sales(3y)4.7%
Cap/Sales(5y)3.65%
Profit Quality(3y)120.27%
Profit Quality(5y)129.6%
High Growth Momentum
Growth
EPS 1Y (TTM)-30.59%
EPS 3Y-11.39%
EPS 5Y-7.64%
EPS Q2Q%26.92%
EPS Next Y98.83%
EPS Next 2Y51.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.2%
Revenue growth 3Y12.32%
Revenue growth 5Y6.21%
Sales Q2Q%-6.58%
Revenue Next Year-2.44%
Revenue Next 2Y2.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-30.23%
EBIT growth 3Y-10.52%
EBIT growth 5Y-8.37%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.22%
FCF growth 3Y-0.62%
FCF growth 5Y-5.55%
OCF growth 1Y9.81%
OCF growth 3Y4.08%
OCF growth 5Y-1.56%