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Meta Financial Group (CASH)
NASDAQ:CASH
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Meta Financial Group
(NASDAQ:CASH)
78Outperform
Meta Financial Group (CASH) vs. S&P 500 (SPY)
Market Cap
$1.62B
Dividend Yield0.29%
Average Volume (3M)232.20K
Price to Earnings (P/E)9.9
Beta (1Y)1.01
Revenue Growth4.68%
EPS Growth12.30%
CountryUS
Employees1,170
SectorFinancial
Sector Strength84
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.85
Shares Outstanding23,845,526
10 Day Avg. Volume279,317
30 Day Avg. Volume232,202
Financial Highlights & Ratios
PEG Ratio0.80
Price to Book (P/B)N/A
Price to Sales (P/S)2.45
Price to Cash Flow (P/CF)-5.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$88.50Price Target Upside30.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Meta Financial Group Business Overview & Revenue Model
Company DescriptionPathward Financial, Inc. operates as the holding company for Pathward, National Association that provides various banking products and services in the United States. It operates through three segments: Consumer, Commercial, and Corporate Services/Other. The company offers demand deposit accounts, savings accounts, money market savings accounts, and certificate accounts. It also provides commercial finance product comprising term lending, asset based lending, factoring, lease financing, insurance premium finance, government guaranteed lending, and other commercial finance products; consumer credit products; other consumer financing services; short-term taxpayer advance loans; and warehouse financing services. In addition, the company issues prepaid cards and consumer credit products; sponsors merchant acquiring and automated teller machines (ATMs) in various debit networks; and offers tax refund-transfer services, and other payment industry products and services. The company was formerly known as Meta Financial Group, Inc. and changed its name to Pathward Financial, Inc. in July 2022. Pathward Financial, Inc. was founded in 1954 and is headquartered in Sioux Falls, South Dakota.
How the Company Makes MoneyMeta Financial Group makes money through a diversified revenue model comprising several key streams. The company's primary revenue sources include interest income from loans and leases, which are offered to businesses and consumers, and fees from various financial services such as payment processing and prepaid card services. Additionally, Meta Financial Group earns income through its tax services and commercial finance solutions. Strategic partnerships with fintech companies and other financial institutions enhance the company's product offerings and expand its market reach, contributing to its earnings. Moreover, MetaBank's deposit services provide a stable funding base that supports its lending activities.
Meta Financial Group Financial Statement Overview
Summary
Strong financial position with consistent revenue growth and profitability. Zero-debt enhances financial stability with room for improving returns on equity.Income Statement
Meta Financial Group demonstrates strong profitability with a consistent net profit margin and steady EBIT and EBITDA margins. Revenue growth is evident from the increase over the past periods, notably a 24% rise from 2023 to 2024. These factors indicate effective cost management and revenue generation capabilities.85
Very Positive
Balance Sheet
The company's balance sheet shows a solid equity position with zero total debt in the latest TTM data, indicating financial stability. The equity ratio stands at 10%, reflecting a moderate level of leverage, which is typical in the banking industry. However, the relatively low return on equity (ROE) suggests room for improving shareholder returns.75
Positive
Cash Flow
Meta Financial Group displays a healthy cash flow situation, with positive free cash flow growth and robust operating cash flow. The free cash flow to net income ratio is favorable, suggesting efficient cash generation relative to profits. The cash flow metrics underscore the company's ability to generate cash to support operations and investments.80
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 621.50M | 299.59M | 577.38M | 501.28M | 508.27M | 443.23M | Gross Profit |
| 423.95M | 299.59M | 316.60M | 501.28M | 508.27M | 443.23M | EBIT |
| 114.45M | 198.79M | 177.49M | 208.60M | 152.41M | 110.38M | EBITDA |
| 205.41M | 0.00 | 247.09M | 248.92M | 215.49M | 175.75M | Net Income Common Stockholders |
| 172.13M | 168.36M | 163.62M | 156.39M | 141.71M | 104.72M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 16.57M | 1.90B | 2.18B | 2.27B | 1.16B | 1.24B | Total Assets |
| 981.91M | 7.55B | 7.54B | 6.75B | 6.69B | 6.09B | Total Debt |
| 108.61M | 410.35M | 46.87M | 36.03M | 92.83M | 98.22M | Net Debt |
| 92.04M | 252.02M | -328.71M | -352.01M | -221.19M | -329.14M | Total Liabilities |
| 920.79M | 6.71B | 6.88B | 6.10B | 5.82B | 5.24B | Stockholders Equity |
| 61.12M | 839.88M | 651.63M | 645.17M | 870.73M | 843.71M |
| Cash Flow | Free Cash Flow | ||||
| 185.85M | 176.78M | -146.79M | -170.06M | 517.62M | 401.32M | Operating Cash Flow |
| 354.48M | 453.54M | 303.11M | 268.81M | 581.64M | 467.22M | Investing Cash Flow |
| 113.60M | -227.66M | -920.76M | -310.87M | -1.12B | -206.32M | Financing Cash Flow |
| -539.76M | -443.20M | 604.86M | 117.82M | 422.93M | 40.02M |
Meta Financial Group Technical Analysis
Negative
67.79
Price Trends
74.93
Negative
76.78
Negative
71.74
Negative
Market Momentum
-1.84
Positive
38.21
Neutral
35.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CASH, the sentiment is Negative. The current price of 67.79 is below the 20-day moving average (MA) of 71.95, below the 50-day MA of 74.93, and below the 200-day MA of 71.74, indicating a bearish trend. The MACD of -1.84 indicates Positive momentum. The RSI at 38.21 is Neutral, neither overbought nor oversold. The STOCH value of 35.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CASH.
Meta Financial Group Risk Analysis
Meta Financial Group disclosed 46 risk factors in its most recent earnings report. Meta Financial Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Meta Financial Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.62B | 9.90 | 22.65% | 0.29% | 4.68% | 12.30% | |
78 Outperform | $1.58B | 8.26 | 16.19% | 3.01% | 12.13% | 10.42% | |
78 Outperform | $1.55B | 12.70 | 11.22% | 1.10% | 24.31% | 97.90% | |
72 Outperform | $1.44B | 4.98 | 16.25% | 1.18% | 23.69% | 11.97% | |
68 Neutral | $1.61B | 13.88 | 16.49% | 2.75% | 11.10% | 3.74% | |
64 Neutral | $1.49B | 19.53 | 5.38% | 2.44% | -1.53% | -27.00% | |
64 Neutral | $13.34B | 9.25 | 9.42% | 4.85% | 16.07% | -8.44% |
* Financial Sector Average
Performance Comparison
CASH
Meta Financial Group
67.79
19.23
39.60%
CHCO
City Holding Company
109.57
12.41
12.77%
FBNC
First Bancorp
36.02
4.94
15.89%
OFG
OFG Bancorp
34.88
1.68
5.06%
NIC
Nicolet Bankshares
102.17
25.38
33.05%
MBIN
Merchants Bancorp
31.38
-6.38
-16.90%
Meta Financial Group Earnings Call Summary
Earnings Call Date: Jan 21, 2025 | % Change Since: -13.51% | Next Earnings Date: Apr 22, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant growth in earnings, net interest income, and strategic initiatives in renewable energy. However, there were some challenges, including increased credit loss provisions and a decrease in deposits. The overall sentiment is positive, given the company's strong liquidity position and strategic growth plans.Highlights
Strong Earnings Growth
Reported earnings of $1.29 per share, representing a year-over-year growth of 22% and net income of $31.4 million.
Net Interest Income Increase
Net interest income grew 6%, with net interest margin expanding to 6.84% and adjusted net interest margin to 5.41%.
Return on Assets and Equity
Return on average assets was 1.69% and return on average tangible equity was 25.65% for the quarter.
Strategic Partnership for Renewable Energy
Announced a strategic partnership to support renewable energy loan growth, focusing on conventional construction loans and USDA guaranteed loans.
Noninterest Income Growth
Noninterest income increased by 9% compared to the prior year's quarter, driven by gain on loan sales.
Share Repurchase Program
Repurchased approximately 702,000 shares at an average share price of $74.5.
Liquidity Position
Liquidity remains strong with approximately $4 billion available.
Lowlights
Increase in Provision for Credit Losses
Provision for credit losses was $12 million, due to strong loan production in the quarter.
Securities Sale Loss
Sold approximately $175 million in par value securities at a loss, offsetting the gain from the sale of the insurance premium finance business.
Decrease in Deposits
Deposits held on the company's balance sheet decreased by around $400 million from the prior year.
Company Guidance
During the Q1 2025 earnings call, Pathward Financial provided several key financial metrics and offered guidance for the fiscal year. The company reported earnings of $1.29 per share, marking a 22% year-over-year increase, with net income reaching $31.4 million. Net interest income rose by 6%, while the net interest margin and adjusted net interest margin expanded to 6.84% and 5.41%, respectively. The company's performance metrics were robust, with a return on average assets of 1.69% and a return on average tangible equity of 25.65%. Pathward reiterated its fiscal 2025 guidance, projecting earnings per diluted share in the range of $7.25 to $7.75. Liquidity remains strong, with approximately $4 billion available, and the company executed share repurchases of around 702,000 shares at an average price of $74.5. Looking ahead, Pathward remains focused on optimizing its balance sheet and expanding its net interest margin, driven by reallocating assets to higher-yielding opportunities.Meta Financial Group Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Meta Financial Group Sees Revenue Boost Amid Strategic Moves
Positive
Jan 21, 2025
Pathward Financial, Inc. announced its fiscal first-quarter results for 2025, reporting a net income of $31.4 million, an increase from $27.7 million in the same period the previous year. The company made strategic moves, including selling its insurance premium finance business and debt securities, to optimize its balance sheet. These actions, along with increased loans and leases, contributed to a 7% rise in total revenue to $173.5 million. Pathward also extended contracts with key partners and increased its tax season enrollment, positioning itself for future growth while managing costs effectively.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.