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Meta Financial (CASH)
:CASH
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Meta Financial Group
(NASDAQ:CASH)
Rating:76Outperform
Price Target:
$86.00
â–²(4.14%Upside)
Meta Financial Group (CASH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.94B
Dividend Yield0.24%
Average Volume (3M)170.13K
Price to Earnings (P/E)11.0
Beta (1Y)1.03
Revenue Growth3.25%
EPS Growth11.22%
CountryUS
Employees1,155
SectorFinancial
Sector Strength81
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.16
Shares Outstanding23,845,526
10 Day Avg. Volume238,681
30 Day Avg. Volume170,132
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)2.17
Price to Sales (P/S)0.00
P/FCF Ratio280.65
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit4.89
Enterprise Value/Ebitda1.80
Forecast
1Y Price Target
$90.00Price Target Upside8.99% 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 generates revenue through multiple streams, primarily originating from its banking and payments operations. The company's key revenue sources include interest income from its loan products, such as consumer and commercial loans, and fees generated from its deposit accounts and wealth management services. MetaBank also earns substantial income from its prepaid card business, which involves issuing and managing prepaid debit cards. This segment benefits from partnerships with various businesses and government agencies, leveraging its expertise in financial technology and payment solutions. Additionally, the company capitalizes on interchange fees, account service charges, and other financial services fees, further contributing to its earnings.
Meta Financial Group Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q2-2025)
| % Change Since: 10.96%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter for Pathward Financials, with significant growth in earnings and revenue, particularly from tax services and balance sheet optimization. Despite some challenges with deposit levels and modest loan growth, the company demonstrates strong liquidity management and enhanced margins, painting an overall positive outlook.Q2-2025 Updates
Positive Updates
Strong Earnings and Revenue Growth
Reported earnings of $3.11 per share for the March quarter, representing a year-over-year growth of 21%, with net income of $74.3 million. Non-interest income increased by 7%, and net interest income rose by 5% compared to the same quarter last year.
Record Tax Season Performance
Operated with over 42,000 independent tax offices, a new record, and saw a 17% growth in total tax services revenues. Pre-tax income for tax services grew 29% to $47.6 million.
Balance Sheet Optimization Success
Strong originations in structured finance and a strategic partnership to support renewable energy loan growth. Sold a portion of the working capital loan portfolio, freeing up $190 million in liquidity.
Improved Net Interest Margin
Net interest margin increased to 6.5% from 6.23% in the prior year period, with the adjusted net interest margin expanding by 33 basis points.
Robust Liquidity and Capital Management
Liquidity remains strong at almost $3.9 billion with a Tier 1 leverage ratio target of 10%. Repurchased roughly 576,000 shares at an average price of $78.11, bringing year-to-date repurchases to almost 1.3 million shares.
Negative Updates
Decline in Deposits
Deposits held on the company's balance sheet at March 31 declined from a year ago, with custodial deposits held at partner banks slightly decreasing from $1.2 billion to $1.1 billion.
Minimal Growth in Loans and Leases
Loans and leases at March 31 were $4.5 billion, a slight increase from $4.4 billion last year, representing a modest growth rate excluding prior year insurance premium finance loans.
Company Guidance
During the Pathward Financials Second Quarter 2025 Earnings Conference Call, key metrics highlighted included earnings of $3.11 per share, reflecting a 21% year-over-year growth, and a net income of $74.3 million. Non-interest income experienced a 7% increase, while net interest income rose by 5% compared to the previous year. The company's net interest margin expanded to 6.5%, up from 6.23% last year. Return on average assets stood at 2.69%, with a return on average tangible equity of 43.79%. The call also revised fiscal 2025 earnings guidance to $7.40 to $7.80 per diluted share. In the tax services segment, non-interest income related to refund transfer and refund advance products grew by 13%, contributing to a 17% increase in total tax services revenues, reaching $85 million. Additionally, pre-tax income for tax services rose 29% to $47.6 million. The company maintained strong liquidity with almost $3.9 billion available and completed share repurchases totaling approximately 576,000 shares at an average price of $78.11, indicating a robust capital return strategy.Meta Financial Group Financial Statement Overview
Summary
Meta Financial Group reflects a strong financial position with consistent revenue growth, profitability, and cash flow generation. 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.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 | 677.72M | 626.20M | 588.25M | 501.28M | 515.13M | 477.04M |
| Gross Profit | 379.00M | 562.30M | 520.02M | 472.74M | 458.50M | 378.46M |
| EBITDA | 258.86M | 256.56M | 247.09M | 248.92M | 215.49M | 175.75M |
| Net Income | 180.86M | 168.36M | 163.62M | 156.39M | 141.71M | 104.72M |
Balance Sheet | ||||||
| Total Assets | 7.01B | 7.55B | 7.54B | 6.75B | 6.69B | 6.09B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 1.90B | 2.18B | 2.27B | 2.18B | 1.24B |
| Total Debt | 33.41M | 410.35M | 46.87M | 36.03M | 98.03M | 98.22M |
| Total Liabilities | 6.18B | 6.71B | 6.88B | 6.10B | 5.82B | 5.24B |
| Stockholders Equity | 832.89M | 839.88M | 651.63M | 645.17M | 870.73M | 843.71M |
Cash Flow | ||||||
| Free Cash Flow | 6.49M | 176.78M | -146.79M | -170.06M | 517.62M | 401.32M |
| Operating Cash Flow | 161.52M | 453.54M | 303.11M | 268.81M | 581.64M | 467.22M |
| Investing Cash Flow | 50.87M | -227.66M | -920.76M | -310.87M | -1.12B | -206.32M |
| Financing Cash Flow | 39.09M | -443.20M | 604.86M | 117.82M | 422.93M | 40.02M |
Meta Financial Group Technical Analysis
Positive
82.58
Price Trends
78.58
Positive
76.22
Positive
75.72
Positive
Market Momentum
0.81
Negative
67.43
Neutral
89.82
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 82.58 is above the 20-day moving average (MA) of 76.86, above the 50-day MA of 78.58, and above the 200-day MA of 75.72, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 67.43 is Neutral, neither overbought nor oversold. The STOCH value of 89.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CASH.
Meta Financial Group Risk Analysis
Meta Financial Group disclosed 1 risk factors in its most recent earnings report. Meta Financial Group 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
Meta Financial Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.93B | 15.39 | 11.47% | 1.00% | 10.78% | 28.31% | |
76 Outperform | $1.94B | 11.02 | 22.88% | 0.24% | 3.25% | 11.22% | |
76 Outperform | $1.97B | 10.49 | 15.46% | 2.74% | 7.61% | 6.82% | |
75 Outperform | $1.83B | 15.81 | 16.25% | 2.51% | 8.80% | 0.22% | |
74 Outperform | $1.89B | 21.57 | 6.03% | 2.02% | -2.00% | -23.83% | |
68 Neutral | $1.58B | 6.35 | 14.81% | 1.16% | 9.73% | -14.72% | |
67 Neutral | $16.86B | 11.64 | 9.71% | 3.83% | 11.61% | -9.60% |
* Financial Sector Average
Performance Comparison
CASH
Meta Financial Group
82.58
26.23
46.55%
CHCO
City Holding Company
127.35
25.60
25.16%
FBNC
First Bancorp
46.86
15.64
50.10%
OFG
OFG Bancorp
44.40
8.57
23.92%
NIC
Nicolet Bankshares
130.08
50.90
64.28%
MBIN
Merchants Bancorp
35.24
-4.72
-11.81%
Meta Financial Group Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Meta Financial Group Faces Nasdaq Compliance Notice
Neutral
May 28, 2025
On May 22, 2025, Pathward Financial, Inc. received a notice from Nasdaq indicating non-compliance with the Nasdaq Listing Rule 5250(c)(1) due to the late filing of its Quarterly Report for the fiscal quarter ended March 31, 2025. The company has 60 days to submit a compliance plan and potentially up to 180 days to regain compliance. This notice does not immediately affect the trading of the company’s stock, and Pathward Financial intends to address the issue promptly.
The most recent analyst rating on (CASH) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Meta Financial Group stock, see the CASH Stock Forecast page.
DividendsFinancial Disclosures
Pathward Financial Announces Q3 2025 Cash Dividend
Positive
May 22, 2025
On May 22, 2025, Pathward Financial, Inc. announced a cash dividend of $0.05 per share for the third quarter of fiscal year 2025, payable on July 1, 2025, to shareholders of record as of June 13, 2025. As of March 31, 2025, the company reported total assets of $7.01 billion and shareholders’ equity of $832.2 million, indicating a stable financial position that supports its dividend declaration.
The most recent analyst rating on (CASH) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Meta Financial Group stock, see the CASH Stock Forecast page.
Stock BuybackFinancial Disclosures
Meta Financial Group Reports Strong Q2 2025 Earnings
Positive
Apr 22, 2025
Pathward Financial, Inc. reported a net income of $74.3 million for the second quarter of fiscal 2025, an increase from the previous year, driven by a successful tax season and strategic balance sheet management. The company saw significant growth in tax services product income and noninterest income, while also repurchasing a substantial amount of common stock, indicating strong financial health and confidence in future performance.
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.