Cass Information Systems Inc (CASS) stock analysis

P/E below its 5-year median

Cass Information Systems's P/E of 19.0 is below its own 5-year median of 19.5.

P/E below the industry

Cass Information Systems's P/E of 19.0 is below the Miscellaneous Business Services median of 25.8.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Cass Information Systems's price-to-book of 3.14 is above the Miscellaneous Business Services median of 2.48.

Trading above fair value

The share price of $55.40 is above our fair value estimate of $53.89.

Margin of safety under 20%

The price is 2.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 1.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 1.0% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 21.1% over the last twelve months, against a 5-year average of 6.9% a year.

Growing slower than the industry

Revenue grew 8.1% over the last twelve months; the Miscellaneous Business Services median is 9.9%.

Guidance issued

The latest outlook (2027 and longer-term loan growth, Oct 22, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 16.3% over the last twelve months and averaged 12.7% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Cass Information Systems's return on equity of 16.3% is above the Miscellaneous Business Services median of 6.8%.

Earnings grew over 5 years

Net income grew 6.9% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 18.9% over the last twelve months, against a 5-year average of 16.7%.

Net margin above the industry

Cass Information Systems's net margin of 18.9% is above the Miscellaneous Business Services median of 3.8%.

No debt

Cass Information Systems has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 0.36; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Cass Information Systems paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Cass Information Systems yields 2.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 43.1% of net income.

Covered by free cash flow

Dividends take 49.4% of free cash flow.