Pathward Financial (CASH) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: 0.27%
• Average Volume (3M): 219.26K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.83
• Revenue Growth: 7.80%
• EPS Growth: 19.38%
• Country: US
• Employees: 1,155
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.57
• Shares Outstanding: 22,169,535
• 10 Day Avg. Volume: 348,357
• 30 Day Avg. Volume: 219,258
• PEG Ratio: 0.48
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 2.53
• P/FCF Ratio: 7.32
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: 2.83
• Enterprise Value/Ebitda: 6.18
• 1Y Price Target: $100.00
• Price Target Upside: 9.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 8.46
• Revenue Forecast (FY): $848.78M

• Rating: 80 Outperform
• Price Target: $99.00 ▲(8.11% Upside)

The score is driven primarily by strong financial performance (high margins, strong cash conversion, and conservative leverage) and a constructive earnings update with raised FY2026 EPS guidance and improving returns. Offsetting factors are stretched technical conditions (overbought momentum) and a low dividend yield, plus monitoring items cited on the call (deposit decline and higher NPLs).

Positive Factors

Sustained High Profitability

Very high operating and net margins indicate durable pricing power and efficient cost structure. Such profitability supports strong internal cash generation, funds reinvestment and shareholder returns, and provides a buffer to absorb cyclical pressure in interest or fee income over the next 2–6 months.

Conservative Balance Sheet and Liquidity

Extremely low leverage and large liquidity reserves reduce funding risk and allow strategic balance-sheet actions (loan growth, securities rotation, buybacks). This financial flexibility supports capital allocation and resilience to market stress over the medium term.

Diversifying Fee Growth and Partner Ramp

Growing fee income from card and deposit partners and a pipeline that can add mid‑ to high‑single digits to card fees creates more stable, noninterest revenue. This reduces reliance on interest margins and enhances scalable, partner-driven recurring revenue over coming quarters.

Negative Factors

Deposit Base Decline and Mix Risk

A year‑over‑year decline in reported deposits and mix shifts toward custodial balances can raise funding volatility and constrain low‑cost funding availability. Over several quarters this may pressure net interest margins or force higher cost funding to support loan growth.

Rising Nonperforming Loans

A noted uptick in NPLs plus materially elevated commercial charge‑offs and an ACL around 116 bps signal early credit stress in commercial finance. If this trend persists it could require higher provisions and erode return metrics and cash generation over the medium term.

Guidance Execution Risk

Management's upgraded EPS guidance depends materially on timing of partner onboards and tax‑season outcomes. These are execution and timing factors that can cause meaningful earnings variability and downside to the high end of guidance if partner ramps or tax season underdeliver.

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 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 partnerships with other financial institutions and technology providers to expand its service offerings and reach a broader customer base. Additionally, revenue is supplemented through the sale of value-added services and solutions that cater to both consumers and businesses, enhancing customer engagement and loyalty.

Pathward Financial Financial Statement Overview

Summary

Strong profitability (net margin 27.13% and EBIT/EBITDA margin 30.36%) and solid cash generation (operating cash flow to net income 18.67; free cash flow growth 24.59%). Balance sheet is conservatively levered (debt-to-equity 0.049) with healthy ROE (21.66%). Watch items include a slight EBIT margin decline and historical free-cash-flow volatility.

Income Statement

Pathward Financial has demonstrated consistent revenue growth over the years, with a recent growth rate of 2.65%. The company maintains strong profitability with a gross profit margin of 90% and a net profit margin of 27.13%. EBIT and EBITDA margins are also robust at 30.36%, indicating efficient operations. However, the slight decline in EBIT margin from the previous year suggests a need for monitoring operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.049, indicating conservative leverage. Return on equity is healthy at 21.66%, showcasing effective use of shareholder funds. The equity ratio stands at 11.96%, suggesting a stable financial structure. The reduction in total debt over the years further strengthens the financial stability of the company.

Cash Flow

Pathward Financial's cash flow is robust, with a significant free cash flow growth rate of 24.59%. The operating cash flow to net income ratio is exceptionally high at 18.67, indicating strong cash generation relative to earnings. The free cash flow to net income ratio of 1.0 suggests efficient conversion of profits into cash. However, the volatility in free cash flow growth in previous years highlights potential fluctuations in cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	685.23M	685.23M	626.20M	588.25M	523.39M	515.13M
Gross Profit	616.86M	616.86M	562.30M	520.02M	461.73M	458.50M
EBITDA	282.78M	282.78M	256.56M	247.09M	241.90M	215.49M
Net Income	185.87M	185.87M	168.36M	163.62M	151.13M	141.71M
Balance Sheet
Total Assets	7.17B	7.17B	7.55B	7.54B	6.75B	6.69B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.09B	1.90B	2.18B	2.27B	2.18B
Total Debt	42.46M	42.46M	410.35M	46.87M	36.03M	98.03M
Total Liabilities	6.31B	6.31B	6.71B	6.88B	6.10B	5.82B
Stockholders Equity	858.04M	858.04M	839.88M	651.63M	645.17M	870.73M
Cash Flow
Free Cash Flow	236.59M	236.59M	176.78M	-146.79M	-170.06M	517.62M
Operating Cash Flow	450.62M	450.62M	453.54M	303.11M	268.81M	581.64M
Investing Cash Flow	25.84M	25.84M	-227.66M	-920.76M	-310.87M	-1.12B
Financing Cash Flow	-513.03M	-513.03M	-443.20M	604.86M	117.82M	422.93M

Pathward Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 91.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 91.57 is above the 20-day moving average (MA) of 81.20, above the 50-day MA of 76.39, and above the 200-day MA of 76.20, indicating a bullish trend. The MACD of 4.68 indicates Negative momentum. The RSI at 80.20 is Negative, neither overbought nor oversold. The STOCH value of 88.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CASH.

Pathward Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASH	80 Outperform	$2.03B	11.09	23.62%	0.27%	7.80%	19.38%
LKFN	77 Outperform	$1.60B	15.45	13.50%	3.37%	-2.90%	-1.47%
CHCO	77 Outperform	$1.83B	14.06	16.42%	2.65%	6.09%	11.49%
LOB	72 Outperform	$1.91B	18.24	6.31%	0.33%	10.41%	-19.43%
BLX	70 Outperform	$1.73B	8.34	16.12%	5.67%	1.35%	9.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CCB	62 Neutral	$1.34B	29.18	11.82%	―	-2.11%	6.48%

Pathward Financial Corporate Events

Pathward Financial Posts Strong Fiscal Q1 Earnings Growth

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 growth in core businesses and disciplined expense control. Total revenue rose to $173.1 million, supported by a $9.2 million increase in commercial finance interest income and higher card and deposit fee income, while new loan originations climbed to $1.89 billion from $1.38 billion, driven by both consumer and commercial finance, including a new consumer contract and partner growth. Despite a 5% decline in net interest income to $119.3 million and a compression in net interest margin to 6.95%, largely tied to the sale of more than half of the held-for-sale consumer finance portfolio and resulting yield changes, Pathward improved profitability metrics, with annualized return on average assets rising to 1.87% and return on average tangible equity to 26.72%. Noninterest income fell 6% to $53.8 million on lower rental and other income and reduced gains on asset sales, while noninterest expenses were essentially flat at $127.2 million, aided by lower card processing and depreciation costs offsetting higher compensation, technology, and professional fees. The company continued to benefit from low funding costs, with overall deposit cost at 0.01% and card-related processing expenses declining in line with lower Effective Federal Funds Rate-linked indices, and it enhanced tax efficiency through $19.7 million in renewable energy lease originations generating $5.2 million in net investment tax credits. Pathward also returned capital to shareholders by repurchasing 651,804 shares at an average price of $72.07, leaving 4,286,012 shares available under its current buyback authorization, underscoring management’s confidence in its strategy and positioning for sustainable growth in fiscal 2026 and beyond.

The most recent analyst rating on (CASH) stock is a Buy with a $83.00 price target. To see the full list of analyst forecasts on Pathward Financial stock, see the CASH Stock Forecast page.

Pathward Financial Declares Q1 2026 Cash Dividend

On November 20, 2025, Pathward Financial, Inc. announced a cash dividend of $0.05 per share for the first quarter of fiscal year 2026, payable on January 2, 2026, to shareholders of record as of December 10, 2025. As of September 30, 2025, the company reported total assets of $7.17 billion and shareholders’ equity of $857.5 million, indicating a stable financial position and commitment to shareholder returns.

The most recent analyst rating on (CASH) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Pathward Financial stock, see the CASH Stock Forecast page.