Pathward Financial (CASH)
NASDAQ:CASH
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Pathward Financial
(NASDAQ:CASH)
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Rating:77Outperform
Price Target:
$98.00
▼(-1.36% Downside)
Action:Reiterated
Date:05/10/26
The score is driven primarily by strong financial fundamentals and an attractive low P/E valuation, supported by a constructive earnings call with reaffirmed guidance and strong operating drivers. These positives are tempered by weak near-term technical momentum and some credit/cash-flow volatility risk.
Positive Factors
Fee-heavy revenue mix
A majority-fee revenue mix (noninterest income = 55% and growing) strengthens Pathward’s business model durability by reducing reliance on net interest income. Fee streams from partners and tax products are stickier, diversify cash flows, and buffer margins against interest-rate swings over the medium term.
Negative Factors
Volatile free cash flow
Intermittent negative free cash flow in recent years signals uneven cash conversion and raises questions about the sustainability of capital returns and internal funding. Persistent FCF volatility can constrain reinvestment, slow buybacks/dividends, and increase reliance on funding markets over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Fee-heavy revenue mix
A majority-fee revenue mix (noninterest income = 55% and growing) strengthens Pathward’s business model durability by reducing reliance on net interest income. Fee streams from partners and tax products are stickier, diversify cash flows, and buffer margins against interest-rate swings over the medium term.
Read all positive factors
Pathward Financial (CASH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.69B
Dividend Yield0.27%
Average Volume (3M)229.58K
Price to Earnings (P/E)6.6
Beta (1Y)0.88
Revenue Growth4.92%
EPS Growth14.55%
CountryUS
Employees1,155
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)8.46
Shares Outstanding21,110,035
10 Day Avg. Volume179,927
30 Day Avg. Volume229,580
Financial Highlights & Ratios
PEG Ratio0.96
Price to Book (P/B)2.02
Price to Sales (P/S)2.53
P/FCF Ratio7.32
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue2.06
Enterprise Value/Gross Profit2.24
Enterprise Value/Ebitda5.92
Forecast
1Y Price Target
$107.50Price Target Upside8.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)8.68
Revenue Forecast (FY)$828.20M
Pathward Financial Business Overview & Revenue Model
Company Description
Pathward 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/...
How the Company Makes Money
Pathward primarily makes money through a combination of (1) net interest income and (2) noninterest (fee) income. Net interest income is earned from lending and other interest-earning assets: the bank originates or acquires loans/financing exposur...
Pathward Financial Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call highlighted several material operating and financial wins — a strong tax season driving noninterest income, double-digit increases in card and deposit fee income, solid originations and commercial finance growth, YoY improvement in adjusted NIM, high returns (ROA and ROTE), ample liquidity, and ongoing buybacks — while also acknowledging near-term credit metric volatility (NPL uptick, higher provisions) and timing headwinds (secondary market revenue, government-related delays). Management characterized many negatives as idiosyncratic, timing‑related or the result of disciplined balance‑sheet actions (portfolio sale, asset rotation). Given the breadth and magnitude of the positive operating trends, guidance maintenance, and management’s view that credit remains benign on a trailing 12‑month basis, the highlights outweigh the lowlights.Positive Updates
Solid Profitability and EPS
Reported net income of $72.9 million and diluted EPS of $3.35 for the quarter; company maintained full-year EPS guidance of $8.55 to $9.05.
Negative Updates
Increase in Nonperforming Loans and Past‑Due Buckets
Nonperforming loans (NPLs) ticked up to 2.39%. Management noted the increase was driven by the 'greater than 90 days past due and still accruing' bucket and that the 30–59 day past‑due bucket rose by approximately $40 million (driven by a limited number of loans, some occurring after quarter-end).
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Profitability and EPS
Reported net income of $72.9 million and diluted EPS of $3.35 for the quarter; company maintained full-year EPS guidance of $8.55 to $9.05.
Read all positive updates
Company Guidance
Management reaffirmed FY‑2026 earnings guidance of $8.55–$9.05 per diluted share, citing strong Q2/mid‑year results that support the outlook: Q2 net income was $72.9M with diluted EPS of $3.35, six‑month ROA of 2.75% and ROATCE of 40.69% (seasonally high). Key revenue and margin drivers include noninterest income up 9% and representing 55% of total revenue, adjusted NIM of 5.32% (+23 bps YoY) (reported NIM 6.3%), core card and deposit fee growth of 22%, and consolidated tax services strength (six‑month tax services revenue $96M; total tax product revenue +13%; tax pre‑income $62M, +30%; Refund Advance originations +$200M; quarter: Refund Advance/tax fees +18% and refund transfers +7%). Balance‑sheet and credit metrics cited in support were loans and leases +9% (including $588M increase in core commercial finance), originations of $367M commercial and $945M consumer, NPLs at 2.39%, liquidity of $2.7B, and ongoing capital actions (repurchased ~855k shares at $84.15 with ~3.4M shares remaining), plus an intentional $10B asset cap to remain Durbin‑exempt.Pathward Financial Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 770.49M | 685.23M | 668.90M | 611.47M | 523.39M | 515.13M |
| Gross Profit | 708.39M | 616.86M | 589.57M | 491.35M | 461.73M | 458.50M |
| EBITDA | 268.20M | 282.78M | 276.38M | 220.00M | 241.90M | 215.49M |
| Net Income | 188.91M | 185.87M | 183.22M | 143.27M | 151.13M | 141.71M |
Balance Sheet | ||||||
| Total Assets | 7.11B | 7.17B | 7.55B | 7.54B | 6.75B | 6.69B |
| Cash, Cash Equivalents and Short-Term Investments | 157.60M | 1.09B | 1.90B | 2.18B | 2.27B | 2.18B |
| Total Debt | 59.51M | 42.46M | 410.35M | 46.87M | 36.03M | 98.03M |
| Total Liabilities | 6.26B | 6.31B | 6.71B | 6.88B | 6.10B | 5.82B |
| Stockholders Equity | 851.46M | 858.04M | 839.88M | 651.63M | 645.17M | 870.73M |
Cash Flow | ||||||
| Free Cash Flow | 502.12M | 236.59M | 176.78M | -146.79M | -170.06M | 517.62M |
| Operating Cash Flow | 675.28M | 450.62M | 453.54M | 303.11M | 268.81M | 581.64M |
| Investing Cash Flow | -641.13M | 25.84M | -227.66M | -920.76M | -310.87M | -1.12B |
| Financing Cash Flow | -131.28M | -513.03M | -443.20M | 604.86M | 117.82M | 422.93M |
Pathward Financial Technical Analysis
Positive
99.35
Price Trends
92.00
Positive
84.17
Positive
79.61
Positive
Market Momentum
2.03
Negative
74.73
Negative
90.09
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CASH, the sentiment is Positive. The current price of 99.35 is above the 20-day moving average (MA) of 92.41, above the 50-day MA of 92.00, and above the 200-day MA of 79.61, indicating a bullish trend. The MACD of 2.03 indicates Negative momentum. The RSI at 74.73 is Negative, neither overbought nor oversold. The STOCH value of 90.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CASH.
Pathward Financial Risk Analysis
Pathward Financial disclosed 1 risk factors in its most recent earnings report. Pathward Financial reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pathward Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.64B | 12.63 | 10.37% | 0.33% | 8.62% | 99.65% | |
77 Outperform | $1.69B | 6.62 | 22.34% | 0.27% | 4.92% | 14.55% | |
76 Outperform | $1.43B | 13.73 | 14.79% | 3.37% | -0.58% | 22.18% | |
74 Outperform | $1.71B | 13.44 | 16.66% | 2.65% | 4.42% | 13.75% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $1.84B | 9.75 | 14.36% | 5.67% | 0.79% | 7.30% | |
65 Neutral | $1.04B | 23.93 | 10.20% | ― | -3.36% | -6.31% |
* Financial Sector Average
CASH
Pathward Financial
79.90
-1.04
-1.29%
BLX
Banco Latinoamericano De Comercio
52.54
14.93
39.71%
CHCO
City Holding Company
121.42
1.97
1.65%
LKFN
Lakeland Financial
57.26
-2.00
-3.37%
LOB
Live Oak Bancshares
35.55
7.55
26.97%
CCB
Coastal Financial
68.41
-18.74
-21.50%
Pathward Financial Corporate Events
Business Operations and StrategyFinancial Disclosures
Pathward Financial Posts Solid Q2 Results Amid Tax Strength
Positive
Apr 22, 2026
Pathward Financial, Inc., a U.S.-based financial holding company focused on tax services, partner solutions and commercial finance, reported fiscal second-quarter 2026 net income of $72.9 million, or $3.35 per share, for the three months ended Mar...
Business Operations and StrategyDividendsFinancial Disclosures
Pathward Financial declares quarterly cash dividend for 2026
Positive
Feb 26, 2026
Pathward Financial, Inc. announced on February 26, 2026, that it declared a cash dividend of $0.05 per share for the second fiscal quarter of 2026, payable on April 1, 2026 to shareholders of record as of March 12, 2026. As of December 31, 2025, t...
Executive/Board ChangesShareholder Meetings
Pathward Shareholders Reaffirm Directors, Governance and Pay Practices
Positive
Feb 25, 2026
At its 2026 Annual Meeting of Stockholders held virtually on February 24, 2026, Pathward Financial, Inc. shareholders re-elected directors Douglas J. Hajek, Christopher Perretta and Kendall E. Stork to three-year terms ending in 2029, while the re...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.