Pathward Financial (CASH)
NASDAQ:CASH
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Pathward Financial
(NASDAQ:CASH)
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Rating:82Outperform
Price Target:
$109.00
▲(23.91% Upside)
Action:ReiteratedDate:02/27/26
The score is driven primarily by strong underlying fundamentals (high profitability and strong returns with currently low leverage) and positive technical momentum with the stock trading above key moving averages. A raised FY2026 EPS guide and improving operating metrics further support the outlook, while historical free-cash-flow inconsistency and execution/timing risks (partner ramp and tax season) temper the score.
Positive Factors
High profitability & ROE
Sustained high ROE and consistently strong net margins (mid-20s) indicate efficient capital deployment and favorable economics in core businesses. This durable profitability supports reinvestment, buybacks and dividends and provides a margin of safety through economic cycles.
Negative Factors
Uneven free cash flow history
An inconsistent cash generation record limits confidence in recurring free cash flow available for buybacks, dividends and debt reduction. Periods of weak cash conversion heighten refinancing and allocation risk, especially if growth or partner ramp timing slips into lower-cash quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability & ROE
Sustained high ROE and consistently strong net margins (mid-20s) indicate efficient capital deployment and favorable economics in core businesses. This durable profitability supports reinvestment, buybacks and dividends and provides a margin of safety through economic cycles.
Read all positive factors
Pathward Financial (CASH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.91B
Dividend Yield0.27%
Average Volume (3M)266.69K
Price to Earnings (P/E)11.3
Beta (1Y)0.86
Revenue Growth7.80%
EPS Growth19.38%
CountryUS
Employees1,155
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.57
Shares Outstanding21,763,685
10 Day Avg. Volume302,775
30 Day Avg. Volume266,688
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 Cap0.87
Enterprise Value/Revenue2.30
Enterprise Value/Gross Profit2.48
Enterprise Value/Ebitda5.79
Forecast
1Y Price Target
$103.50Price Target Upside17.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)8.46
Revenue Forecast (FY)$848.78M
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 Financial generates revenue through a variety of channels, including transaction fees from payment processing, interest income from loans and credit products, and fees associated with digital banking services. The company capitalizes on p...
Pathward Financial Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call demonstrated strong underlying operating momentum: profitability and return metrics improved materially (net income +17%, EPS +28%), loan originations and commercial finance balances expanded, core card and deposit fee income grew as new partners began to contribute, adjusted NIM trended higher, liquidity and buybacks remained robust, and management raised FY2026 EPS guidance. Offsets included a one-time reduction to NII from the sale of a consumer finance portfolio, a slight uptick in nonperforming loans (while net charge-offs remained low), a year-over-year deposit decline at period end, and timing-related pressure to secondary market revenue. Management emphasized balance sheet optimization, fee-driven growth, and a strong partner pipeline, while noting that achievement of the higher end of guidance depends on partner ramp timing and a successful tax season. Overall, the positives (profitability, guidance raise, loan originations, fee growth, liquidity) outweigh the transitory and execution risks discussed.Positive Updates
Strong profitability and raised guidance
Net income of $35.2 million and diluted EPS of $1.57, increases of 17% and 28% year-over-year, respectively. Management raised FY2026 EPS guidance to $8.55–$9.05 (higher midpoint) with assumptions of no additional rate cuts and an 18%–22% effective tax rate.
Negative Updates
Sale of consumer finance portfolio reduced reported NII
Sale recorded an $11.9 million reduction to net interest income in the quarter. Management states this is largely offset by reduced provision and lower other expenses, but it reduced reported NII and artificially lowered NIM when viewed on a GAAP basis.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong profitability and raised guidance
Net income of $35.2 million and diluted EPS of $1.57, increases of 17% and 28% year-over-year, respectively. Management raised FY2026 EPS guidance to $8.55–$9.05 (higher midpoint) with assumptions of no additional rate cuts and an 18%–22% effective tax rate.
Read all positive updates
Company Guidance
Pathward increased fiscal 2026 EPS guidance to $8.55–$9.05 (assumes no additional rate cuts, effective tax rate 18–22% and expected share repurchases), supported by Q1 results including net income $35.2M and diluted EPS $1.57 (up 17% and 28% YoY), annualized ROAA 1.87% and ROTAE 26.7% (vs 1.61% and 25.5% a year ago), deposits $6.4B (‑$170M YoY; average deposits +$90M), loans and leases $5.0B (vs $4.6B) with a $531M increase in commercial finance and $148M decrease in consumer finance, $1.9B of originations ($678M commercial, $1.2B consumer), liquidity $3.7B, ~652k shares repurchased at an average $72.07 (4.3M shares remaining), and an $11.9M reduction to NII from the consumer finance sale; key credit and margin metrics cited were adjusted NIM progression (5.11% year‑ago → 5.31% prior quarter → 5.49% this quarter, with 5.31% as a Q2 launch point), annualized NCOs ex‑tax services ~2 bps, trailing‑12‑month commercial net charge‑offs 39 bps, and commercial ACL 116 bps (vs 118 bps a year ago).Pathward Financial Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 724.34M | 685.23M | 668.90M | 611.47M | 523.39M | 515.13M |
| Gross Profit | 672.62M | 616.86M | 589.57M | 491.35M | 461.73M | 458.50M |
| EBITDA | 287.74M | 282.78M | 276.38M | 220.00M | 241.90M | 215.49M |
| Net Income | 191.02M | 185.87M | 183.22M | 143.27M | 151.13M | 141.71M |
Balance Sheet | ||||||
| Total Assets | 7.56B | 7.17B | 7.55B | 7.54B | 6.75B | 6.69B |
| Cash, Cash Equivalents and Short-Term Investments | 1.29B | 1.09B | 1.90B | 2.18B | 2.27B | 2.18B |
| Total Debt | 33.48M | 42.46M | 410.35M | 46.87M | 36.03M | 98.03M |
| Total Liabilities | 6.71B | 6.31B | 6.71B | 6.88B | 6.10B | 5.82B |
| Stockholders Equity | 854.53M | 858.04M | 839.88M | 651.63M | 645.17M | 870.73M |
Cash Flow | ||||||
| Free Cash Flow | 421.90M | 236.59M | 176.78M | -146.79M | -170.06M | 517.62M |
| Operating Cash Flow | 630.66M | 450.62M | 453.54M | 303.11M | 268.81M | 581.64M |
| Investing Cash Flow | -567.28M | 25.84M | -227.66M | -920.76M | -310.87M | -1.12B |
| Financing Cash Flow | -331.17M | -513.03M | -443.20M | 604.86M | 117.82M | 422.93M |
Pathward Financial Technical Analysis
Neutral
87.97
Price Trends
89.36
Negative
80.57
Positive
78.39
Positive
Market Momentum
-0.12
Positive
43.37
Neutral
14.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CASH, the sentiment is Neutral. The current price of 87.97 is below the 20-day moving average (MA) of 90.23, below the 50-day MA of 89.36, and above the 200-day MA of 78.39, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 43.37 is Neutral, neither overbought nor oversold. The STOCH value of 14.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.91B | 11.28 | 22.83% | 0.27% | 7.80% | 19.38% | |
76 Outperform | $1.71B | 13.12 | 16.68% | 2.65% | 6.09% | 11.49% | |
70 Outperform | $1.74B | 7.30 | 14.85% | 5.67% | 1.35% | 9.65% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $1.48B | 15.19 | 6.31% | 0.33% | 10.41% | -19.43% | |
63 Neutral | $1.43B | 14.15 | 13.50% | 3.37% | -2.90% | -1.47% | |
61 Neutral | $1.12B | 36.84 | 10.01% | ― | -2.11% | 6.48% |
* Financial Sector Average
CASH
Pathward Financial
87.97
15.21
20.90%
BLX
Banco Latinoamericano De Comercio
49.64
15.08
43.65%
CHCO
City Holding Company
119.45
5.18
4.53%
LKFN
Lakeland Financial
56.51
-0.95
-1.65%
LOB
Live Oak Bancshares
32.09
5.53
20.81%
CCB
Coastal Financial
73.39
-17.02
-18.83%
Pathward Financial Corporate Events
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...
Business Operations and StrategyStock BuybackFinancial Disclosures
Pathward Financial Posts Strong Fiscal Q1 Earnings Growth
Positive
Jan 22, 2026
On January 22, 2026, Pathward Financial reported results for its fiscal first quarter ended December 31, 2025, posting net income of $35.2 million, or $1.57 per share, up from $30.0 million, or $1.23 per share, a year earlier, reflecting solid gro...
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.