Cadence Bank (CADE) AI Stock Analysis

• Market Cap: $7.97B
• Dividend Yield: 2.52%
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.05
• Revenue Growth: 14.58%
• EPS Growth: -19.97%
• Country: US
• Employees: 5,356
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.67
• Shares Outstanding: 182,732,960
• 10 Day Avg. Volume: 2,479,934
• 30 Day Avg. Volume: 2,082,358
• PEG Ratio: -3.19
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 2.17
• P/FCF Ratio: 8.10
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 2.77
• Enterprise Value/Gross Profit: 4.11
• Enterprise Value/Ebitda: 12.72
• 1Y Price Target: $44.28
• Price Target Upside: 1.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 3.45
• Revenue Forecast (FY): $2.17B

• Rating: 71 Outperform
• Price Target: $50.00 ▲(14.57% Upside)

CADE scores well overall on strong technical uptrend/momentum and a constructive earnings call (acquisition-driven growth and improving net interest margin). The score is held back by mixed recent financial momentum (cooling revenue, negative TTM free cash flow) and balance-sheet leverage volatility, while valuation is reasonable but not a standout.

Positive Factors

Successful Acquisition

The acquisition of Industry Bank Shares expands Cadence Bank's footprint in Central Texas and Georgia, enhancing market presence and customer base, which supports long-term growth and strategic positioning.

Net Interest Margin Improvement

Improvement in net interest margin indicates better profitability from lending activities, driven by improved securities yields and reduced funding costs, which strengthens the bank's earnings potential.

Revenue and Deposit Growth

Significant growth in deposits reflects increased customer trust and financial stability, providing a strong base for future lending and investment activities, supporting sustainable revenue growth.

Negative Factors

Decline in Revenue Growth

A significant decline in revenue growth suggests potential challenges in maintaining market competitiveness and could impact long-term profitability if not addressed through strategic initiatives.

Decline in Free Cash Flow

Reduced free cash flow growth may limit the bank's ability to invest in new opportunities, pay down debt, or return capital to shareholders, potentially affecting long-term financial flexibility.

Challenges with Mortgage Banking

Declining mortgage banking revenue due to seasonal factors and MSR adjustments could signal ongoing challenges in this segment, affecting overall revenue diversification and stability.

Cadence Bank Business Overview & Revenue Model

Company Description

Cadence Bank provides commercial banking and financial services in the United States. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services. The company's products and services also comprise small business administration lending, foreign exchange, wealth management, investment and trust, financial planning, retirement plan management, and personal and business insurance services. As of March 3, 2022, it operated approximately 400 branch locations across the South, Midwest, and Texas. The company was incorporated in 1876 and is headquartered in Tupelo, Mississippi.

How the Company Makes Money

Cadence Bank generates revenue primarily through interest income and non-interest income. Interest income is derived from the interest earned on loans issued to customers, including consumer, mortgage, and commercial loans. Additionally, the bank earns interest from its investment securities. Non-interest income streams include service fees on deposit accounts, transaction fees, wealth management fees, and income from the bank's investment advisory services. The bank also benefits from partnerships with local businesses and organizations, enhancing its service offerings and expanding its customer base, contributing to its overall earnings.

Cadence Bank Financial Statement Overview

Summary

Cadence Bank demonstrates strong profitability and operational efficiency, with robust profit margins and a balanced debt profile. However, the significant decline in revenue growth and free cash flow growth in the TTM raises concerns about future growth prospects. The company maintains a stable return on equity, but liquidity management needs attention to ensure sustainable financial health.

Income Statement

Cadence Bank's income statement shows a strong gross profit margin of 67.07% for TTM, indicating efficient cost management. However, the revenue growth rate has declined by 34.8% in the TTM, which is a concern. The net profit margin of 20.64% remains healthy, and the EBIT and EBITDA margins are solid at 27.99% and 31.62%, respectively, suggesting good operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.51 in the TTM, indicating a balanced approach to leveraging. The return on equity is stable at 9.43%, showing consistent profitability. The equity ratio is not explicitly calculated but appears stable given the equity and asset figures, suggesting a sound financial position.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 7.8% in the TTM, which is a concern. The operating cash flow to net income ratio is low at 1.63%, indicating potential liquidity constraints. However, the free cash flow to net income ratio is strong at 91.82%, showing effective cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.67B	2.90B	2.19B	1.90B	1.12B	1.14B
Gross Profit	1.79B	1.72B	1.16B	1.69B	910.55M	938.43M
EBITDA	580.36M	878.76M	237.70M	832.84M	400.67M	362.66M
Net Income	530.43M	523.60M	542.30M	463.24M	195.16M	228.05M
Balance Sheet
Total Assets	53.28B	47.02B	48.93B	48.65B	47.67B	24.08B
Cash, Cash Equivalents and Short-Term Investments	6.31B	9.03B	12.31B	13.94B	16.90B	6.65B
Total Debt	2.29B	34.32M	4.39B	4.47B	1.76B	939.37M
Total Liabilities	47.20B	41.45B	43.77B	44.34B	42.42B	21.26B
Stockholders Equity	6.08B	5.57B	5.17B	4.31B	5.25B	2.82B
Cash Flow
Free Cash Flow	507.73M	776.59M	465.22M	833.42M	1.10B	156.94M
Operating Cash Flow	584.46M	856.66M	563.51M	927.91M	1.17B	222.89M
Investing Cash Flow	-1.24B	-782.16M	2.40B	-1.71B	-3.15B	-2.43B
Financing Cash Flow	-1.44B	-2.58B	-723.05M	1.49B	2.86B	2.29B

Cadence Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CADE, the sentiment is Positive. The current price of 43.64 is below the 20-day moving average (MA) of 43.97, above the 50-day MA of 41.39, and above the 200-day MA of 35.32, indicating a bullish trend. The MACD of 0.75 indicates Positive momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CADE.

Cadence Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOKF	73 Outperform	$7.91B	14.90	9.13%	1.93%	-2.81%	14.96%
PB	72 Outperform	$6.88B	12.94	7.09%	3.31%	0.55%	19.13%
CADE	71 Outperform	$7.97B	15.75	9.10%	2.52%	14.58%	-19.97%
GGAL	71 Outperform	$8.64B	9.31	17.93%	1.82%	-36.51%	-39.66%
PNFP	70 Outperform	$14.52B	12.20	9.44%	0.95%	7.76%	49.85%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%