Cass Information Systems (NasdaqGS:CASS) - Share price, News & Analysis

CASS fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	5/6
Dividends	5/6

CASS Stock Overview

Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States.

Rewards

Trading at 8.8% below our estimate of its fair value

Earnings have grown 0.9% per year over the past 5 years

Pays a reliable dividend of 3.45%

Risk Analysis

No risks detected for CASS from our risk checks.

Cass Information Systems Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cass Information Systems
Historical stock prices
Current Share Price	US$32.42
52 Week High	US$48.21
52 Week Low	US$32.00
Beta	0.62
1 Month Change	-21.23%
3 Month Change	-22.38%
1 Year Change	-26.30%
3 Year Change	-29.12%
5 Year Change	-30.97%
Change since IPO	1,276.96%

Recent News & Updates

May 06

Cass Information Systems: Set To Benefit From Inflation And Rising Rates

Cass is a payment processor that benefits from increasing transportation and utility costs due to wage and fuel inflation. Cass also operates an asset-sensitive commercial bank that will significantly increase margins as interest rates rise. Shares have stagnated even as the company's earnings have steadily improved. Shareholders will benefit from buybacks and dividends.

Shareholder Returns

	CASS	US IT	US Market
7D	-6.6%	-1.2%	-2.7%
1Y	-26.3%	-28.1%	-12.9%

Return vs Industry: CASS exceeded the US IT industry which returned -28.1% over the past year.

Return vs Market: CASS underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is CASS's price volatile compared to industry and market?
CASS volatility
CASS Average Weekly Movement	3.9%
IT Industry Average Movement	10.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: CASS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CASS's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1906	1,000	Eric Brunngraber	https://www.cassinfo.com

Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. It operates through two segments, Information Services and Banking Services. The company’s services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information.

Cass Information Systems Fundamentals Summary

How do Cass Information Systems's earnings and revenue compare to its market cap?
CASS fundamental statistics
Market Cap	US$442.63m
Earnings (TTM)	US$29.79m
Revenue (TTM)	US$160.89m

14.9x

P/E Ratio

2.8x

P/S Ratio

Is CASS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CASS income statement (TTM)
Revenue	US$160.89m
Cost of Revenue	US$95.05m
Gross Profit	US$65.85m
Other Expenses	US$36.06m
Earnings	US$29.79m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.18
Gross Margin	40.93%
Net Profit Margin	18.52%
Debt/Equity Ratio	0%

How did CASS perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

51%

Payout Ratio

Does CASS pay a reliable dividends?

See CASS dividend history and benchmarks

When do you need to buy CASS by to receive an upcoming dividend?
Cass Information Systems dividend dates
Ex Dividend Date	Jun 02 2022
Dividend Pay Date	Jun 15 2022
Days until Ex dividend	11 days
Days until Dividend pay date	24 days

Does CASS pay a reliable dividends?

See CASS dividend history and benchmarks

Valuation

Is Cass Information Systems undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

8.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CASS ($32.42) is trading below our estimate of fair value ($35.55)

Significantly Below Fair Value: CASS is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: CASS is good value based on its PE Ratio (14.9x) compared to the US IT industry average (27.4x).

PE vs Market: CASS is good value based on its PE Ratio (14.9x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CASS's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: CASS is good value based on its PB Ratio (2x) compared to the US IT industry average (3.1x).

Future Growth

How is Cass Information Systems forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

19.7%

Forecasted Software industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cass Information Systems has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Cass Information Systems performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CASS has high quality earnings.

Growing Profit Margin: CASS's current net profit margins (18.5%) are higher than last year (17%).

Past Earnings Growth Analysis

Earnings Trend: CASS's earnings have grown by 0.9% per year over the past 5 years.

Accelerating Growth: CASS's earnings growth over the past year (20.6%) exceeds its 5-year average (0.9% per year).

Earnings vs Industry: CASS earnings growth over the past year (20.6%) underperformed the IT industry 21.4%.

Return on Equity

High ROE: CASS's Return on Equity (13.7%) is considered low.

Financial Health

How is Cass Information Systems's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CASS's short term assets ($1.5B) do not cover its short term liabilities ($1.6B).

Long Term Liabilities: CASS's short term assets ($1.5B) exceed its long term liabilities ($591.8M).

Debt to Equity History and Analysis

Debt Level: CASS is debt free.

Reducing Debt: CASS had no debt 5 years ago.

Debt Coverage: CASS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CASS has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Cass Information Systems's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.45%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: CASS's dividend (3.45%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: CASS's dividend (3.45%) is low compared to the top 25% of dividend payers in the US market (4.11%).

Stability and Growth of Payments

Stable Dividend: CASS's dividends per share have been stable in the past 10 years.

Growing Dividend: CASS's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (51.4%), CASS's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (56.4%), CASS's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure

CEO

Eric Brunngraber (64 yo)

13.83yrs

Tenure

US$2,360,535

Compensation

Mr. Eric H. Brunngraber has been the Chief Executive Officer of Cass Information Systems Inc. since July 20, 2008 and had been its President since May 15, 2006 until January 25, 2022. Mr. Brunngraber is a...

CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD2.36M) is about average for companies of similar size in the US market ($USD2.59M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: CASS's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.

Board Members

Experienced Board: CASS's board of directors are seasoned and experienced ( 14.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31