Pathward Financial (CASH) AI Stock Analysis

• Market Cap: $1.99B
• Dividend Yield: 0.27%
• Average Volume (3M): 307.22K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.87
• 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: 21,763,685
• 10 Day Avg. Volume: 299,241
• 30 Day Avg. Volume: 307,219
• PEG Ratio: 0.96
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 2.53
• P/FCF Ratio: 7.32
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 2.59
• Enterprise Value/Ebitda: 6.07
• 1Y Price Target: $100.00
• Price Target Upside: 9.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 8.46
• Revenue Forecast (FY): $848.78M

• Rating: 82 Outperform
• Price Target: $109.00 ▲(19.19% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 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.

Fee diversification & partner pipeline

Growing fee income from cards, deposits and an expanding partner pipeline reduces reliance on net interest income and interest-rate sensitivity. Scalable partner contracts can produce recurring, higher-margin revenue and help stabilize earnings through credit or rate shocks over multiple quarters.

Strong liquidity and low leverage

Ample liquidity and a very low debt stock provide financial flexibility to fund growth, support originate-to-sell activity, and absorb underwriting or market stress without forcing dilutive capital raises. Conservative leverage underpins resilient capital allocation and risk management.

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.

Balance-sheet/funding volatility

Episodes of rapid debt buildup signal reliance on variable funding choices and create execution risk if markets tighten. Funding-mix swings can increase interest expense volatility and complicate NIM management, making long-term margin stability more sensitive to liability-side execution.

Execution sensitivity to partner ramp & tax season

Revenue and guidance materially hinge on third-party partner onboarding and seasonal tax operations. These dependencies introduce multi-quarter execution risk: slower partner ramps or softer tax-season outcomes can delay fee recognition and compress projected earnings despite underlying product demand.

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

Fundamentals are solid, led by strong profitability and steady revenue expansion (Income Statement score 86) plus high ROE with currently very low leverage (Balance Sheet score 78). The main offsets are historically uneven free cash flow (Cash Flow score 70) and a notable FY2024 leverage spike that raises monitoring needs around funding mix stability.

Income Statement

Pathward Financial shows steady top-line momentum, with revenue rising from $515M (2021) to $685M (FY2025) and $724M in TTM (Trailing-Twelve-Months). Profitability is a clear strength: net profit margin remains consistently strong (roughly 26%–29%) and operating profitability is solid across periods. The main watch-out is that revenue growth has not been consistent year-to-year (slower in FY2025 vs prior years), suggesting growth may be more moderate/variable going forward despite healthy earnings.

Balance Sheet

Leverage is currently very conservative, with total debt dropping sharply to ~$33M in TTM (Trailing-Twelve-Months) and a low debt-to-equity ratio (~0.04), supporting financial flexibility. Returns on equity are strong (about 20%–25% historically; ~23% in TTM), indicating efficient capital use. The key concern is balance-sheet volatility: FY2024 shows a spike in debt (to ~$410M and a much higher debt-to-equity), which raises questions about funding mix stability even though it appears to have been reduced again.

Cash Flow

Cash generation has improved meaningfully: operating cash flow increased from $451M (FY2025) to $631M in TTM (Trailing-Twelve-Months), and free cash flow rebounded strongly (from $237M in FY2025 to $472M in TTM). However, the track record is uneven—free cash flow was negative in FY2022 and FY2023, indicating past periods where cash conversion was weak. Free cash flow relative to net income is positive recently, but not consistently strong across the full history.

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

• Technical Analysis Sentiment: Positive
• Last Price: 91.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 91.45 is below the 20-day moving average (MA) of 92.56, above the 50-day MA of 83.49, and above the 200-day MA of 77.36, indicating a neutral trend. The MACD of 2.38 indicates Positive momentum. The RSI at 54.68 is Neutral, neither overbought nor oversold. The STOCH value of 38.58 is Neutral, 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	82 Outperform	$1.99B	11.28	23.62%	0.27%	7.80%	19.38%
CHCO	73 Outperform	$1.74B	13.12	16.42%	2.65%	6.09%	11.49%
BLX	70 Outperform	$1.74B	7.30	15.05%	5.67%	1.35%	9.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LKFN	67 Neutral	$1.49B	14.15	13.50%	3.37%	-2.90%	-1.47%
LOB	65 Neutral	$1.68B	15.19	6.31%	0.33%	10.41%	-19.43%
CCB	58 Neutral	$1.17B	36.84	11.82%	―	-2.11%	6.48%

Pathward Financial Corporate Events

Pathward Financial declares quarterly cash dividend for 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, the company reported total assets of $7.56 billion and shareholders’ equity of $853.7 million, underscoring its capital position as it continues its strategy of supporting financial inclusion.

The dividend declaration reflects Pathward Financial’s ongoing practice of returning capital to shareholders while maintaining a sizable asset base to support its Partner Solutions and Commercial Finance operations. The move may signal confidence in the company’s financial stability and earnings capacity as it advances its inclusive finance-focused business model.

The most recent analyst rating on (CASH) stock is a Buy with a $108.00 price target. To see the full list of analyst forecasts on Pathward Financial stock, see the CASH Stock Forecast page.

Pathward Shareholders Reaffirm Directors, Governance and Pay Practices

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 remaining directors on the board continued their service. Stockholders also ratified the appointment of KPMG LLP as independent auditors for the fiscal year ending September 30, 2026, reinforcing continuity in the company’s governance and financial oversight.

Shareholders approved, on a non-binding advisory basis, the compensation of the company’s named executive officers and strongly backed holding future Say-on-Pay votes annually, with the Compensation Committee adopting a one-year frequency until at least the 2032 annual meeting. These outcomes signal investor support for existing leadership, executive pay practices and audit arrangements, underscoring stability in Pathward Financial’s corporate governance framework and stakeholder alignment on oversight mechanisms.

The most recent analyst rating on (CASH) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Pathward Financial stock, see the CASH Stock Forecast page.

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.