Pathward Financial (CASH) AI Stock Analysis

• Market Cap: $1.76B
• Dividend Yield: 0.26%
• Average Volume (3M): 166.39K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.97
• Revenue Growth: 6.51%
• EPS Growth: 13.68%
• Country: US
• Employees: 1,155
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.81
• Shares Outstanding: 22,772,570
• 10 Day Avg. Volume: 230,801
• 30 Day Avg. Volume: 166,390
• PEG Ratio: 0.96
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 2.65
• P/FCF Ratio: 9.40
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: 2.63
• Enterprise Value/Ebitda: 7.18
• 1Y Price Target: $86.00
• Price Target Upside: 14.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: $84.00 ▲(12.01% Upside)

Meta Financial Group's overall stock score is driven by strong financial performance and a positive earnings outlook, despite mixed technical indicators and modest valuation metrics. The company's zero-debt position and revenue growth are significant strengths, while challenges include elevated expenses and nonperforming loans.

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/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 Money

Pathward Financial generates revenue through several key streams. Primarily, the company earns income from transaction fees associated with its prepaid debit card services and payment processing solutions. Additionally, it generates interest income from the balances held in customer accounts and from loans provided to clients. Pathward also engages in partnerships with various businesses, including fintech companies, which expand its service offerings and customer base. These collaborations often involve revenue-sharing agreements that further contribute to the company's earnings. Furthermore, the company benefits from economies of scale as it grows its customer base, allowing for increased operational efficiency and profitability.

Pathward Financial Financial Statement Overview

Summary

Meta Financial Group demonstrates strong profitability with consistent revenue growth and effective cost management. The zero-debt approach enhances financial stability, although there is potential to improve 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	683.89M	626.20M	588.25M	501.28M	515.13M	477.04M
Gross Profit	664.09M	562.30M	520.02M	472.74M	458.50M	378.46M
EBITDA	242.95M	256.56M	247.09M	248.92M	215.49M	175.75M
Net Income	181.01M	168.36M	163.62M	156.39M	141.71M	104.72M
Balance Sheet
Total Assets	7.23B	7.55B	7.54B	6.75B	6.69B	6.09B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.90B	2.18B	2.27B	2.18B	1.24B
Total Debt	148.43M	410.35M	46.87M	36.03M	98.03M	98.22M
Total Liabilities	6.41B	6.71B	6.88B	6.10B	5.82B	5.24B
Stockholders Equity	818.72M	839.88M	651.63M	645.17M	870.73M	843.71M
Cash Flow
Free Cash Flow	287.56M	176.78M	-146.79M	-170.06M	517.62M	401.32M
Operating Cash Flow	281.97M	453.54M	303.11M	268.81M	581.64M	467.22M
Investing Cash Flow	428.23M	-227.66M	-920.76M	-310.87M	-1.12B	-206.32M
Financing Cash Flow	-722.82M	-443.20M	604.86M	117.82M	422.93M	40.02M

Pathward Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 74.99 is below the 20-day moving average (MA) of 76.97, below the 50-day MA of 77.11, and below the 200-day MA of 76.99, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 33.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CASH.

Pathward Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LKFN	78 Outperform	1.64B	17.74	―	3.07%	-1.41%	-6.42%
BLX	76 Outperform	1.64B	7.97	15.57%	5.07%	3.46%	12.88%
CHCO	74 Outperform	1.79B	14.93	16.03%	2.56%	8.28%	6.96%
CCB	74 Outperform	1.74B	35.30	10.31%	―	9.22%	18.60%
LOB	73 Outperform	1.64B	29.48	5.28%	0.34%	10.13%	-50.08%
CASH	71 Outperform	$1.76B	10.27	22.69%	0.26%	6.51%	13.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Pathward Financial Corporate Events

Pathward Financial Faces Nasdaq Compliance Notice

On August 26, 2025, Pathward Financial received a notice from Nasdaq indicating non-compliance with the Nasdaq Listing Rule due to the delayed filing of its Quarterly Report for the fiscal quarter ended June 30, 2025. This follows a similar notice received on May 22, 2025, for the previous quarter. The company has until September 10, 2025, to update its compliance plan and aims to meet the November 13, 2025 deadline to regain compliance. The notice does not immediately affect the company’s stock listing or trading on Nasdaq.

Pathward Financial Declares Fourth Quarter Cash Dividend

On August 21, 2025, Pathward Financial, Inc. announced a cash dividend of $0.05 per share for the fourth quarter of fiscal year 2025, payable on October 1, 2025, to shareholders of record as of September 10, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders and may influence its market positioning by demonstrating financial stability and shareholder returns.

Meta Financial Group Restates Financial Statements Amid Errors

Pathward Financial, Inc. reported preliminary results for its fiscal third quarter of 2025, showing a net income of $42.1 million, a slight decrease from the previous year. The company experienced a 4% increase in total revenue, driven by noninterest income, and a rise in net interest margin due to balance sheet optimization. However, the company is restating certain financial statements due to errors in gross vs. net basis presentation and derivative accounting. The restatements are expected to impact the Credit Solutions business and held-for-investment loan balances, with actual results potentially differing from the preliminary figures.