Cass Information Systems (CASS) AI Stock Analysis

• Market Cap: $588.27M
• Dividend Yield: 2.98%
• Average Volume (3M): 77.38K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.70
• Revenue Growth: -4.96%
• EPS Growth: 39.42%
• Country: US
• Employees: 1,008
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.68
• Shares Outstanding: 13,084,279
• 10 Day Avg. Volume: 68,236
• 30 Day Avg. Volume: 77,381
• PEG Ratio: -0.80
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 2.51
• P/FCF Ratio: 18.65
• Enterprise Value/Market Cap: 0.33
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 1.10
• Enterprise Value/Ebitda: 4.70
• 1Y Price Target: $50.00
• Price Target Upside: 19.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $48.00 ▲(15.08% Upside)

The score is driven primarily by strong financial quality—debt-free balance sheet and solid free-cash-flow generation—supported by positive corporate actions (record earnings, dividend increase, and buybacks). Technicals are moderately favorable with price above key moving averages, while valuation is reasonable with a ~2.9% yield. The key risk tempering the score is the sharp TTM revenue contraction and variability in historical trendlines.

Positive Factors

Strong Liquidity

Cass Information Systems' zero-debt position and strong liquidity provide financial stability and flexibility, allowing the company to invest in growth opportunities without the burden of interest expenses.

Cash Generation Ability

The company's ability to generate steady operating cash flow ensures it can sustain operations, invest in future growth, and return value to shareholders through dividends or buybacks.

Strong Gross Margins

High gross margins indicate effective cost management and pricing power, which can support profitability even in challenging market conditions, providing a competitive edge.

Negative Factors

Declining Profitability

Decreasing net profit margins suggest challenges in controlling costs or maintaining pricing, which can impact long-term profitability and shareholder returns.

Revenue Decline

The decline in revenue growth can signal market saturation or increased competition, potentially limiting future growth prospects and affecting market position.

Operational Efficiency Concerns

Operational inefficiencies can lead to higher costs and reduced profitability, hindering the company's ability to compete effectively and adapt to market changes.

Cass Information Systems Business Overview & Revenue Model

Company Description

Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. It operates through two segments, Information Services and Banking Services. The company's services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. It also processes and pays facility-related invoices, such as electricity, gas, waste, and telecommunications expenses; and provides telecom expense management solutions. In addition, the company, through its banking subsidiary, Cass Commercial Bank, provides a range of banking products and services, such as checking, savings, and time deposit accounts; commercial, industrial, and real estate loans; and cash management services to privately-owned businesses and faith-related ministries. Further, it provides B2B payment platform for clients that require an agile fintech partner. It operates through its banking facility near downtown St. Louis, Missouri; operating branch in the Bridgeton, Missouri; and leased facilities in Fenton, Missouri and Colorado Springs, Colorado. The company was formerly known as Cass Commercial Corporation and changed its name to Cass Information Systems, Inc. in January 2001. Cass Information Systems, Inc. was founded in 1906 and is headquartered in St. Louis, Missouri.

How the Company Makes Money

Cass Information Systems generates revenue primarily through its service offerings, including freight audit and payment services, which involve auditing transportation invoices and ensuring accurate payments. The company charges clients a fee for these services, typically based on a percentage of the savings realized or the volume of transactions processed. Other significant revenue streams include telecommunications expense management services, where CASS helps organizations manage and optimize their telecommunications expenses, and utility expense management solutions. Additionally, CASS has established partnerships with various logistics and telecommunications providers to enhance its service offerings, further contributing to its revenue growth.

Cass Information Systems Financial Statement Overview

Summary

High-quality financial profile supported by a very conservative balance sheet (zero debt) and strong cash generation (TTM operating cash flow ~$51M; free cash flow ~$44.8M with ~97% conversion vs. net income). The main drag is operating momentum uncertainty due to a sharp TTM revenue decline (about -74%) and some historical variability in margins/free-cash-flow growth.

Income Statement

Profitability is solid, with TTM (Trailing-Twelve-Months) net margin at ~15% and operating profitability holding up. However, growth is the key weakness: TTM (Trailing-Twelve-Months) revenue is down sharply (about -74%), and while 2023–2024 showed modest-to-good growth, the latest TTM (Trailing-Twelve-Months) drop raises concerns about demand/volume volatility. Margins have also been somewhat inconsistent across years, suggesting earnings power can fluctuate.

Balance Sheet

The balance sheet appears very conservative with minimal leverage: TTM (Trailing-Twelve-Months) shows zero debt and equity of ~$243M against ~$2.45B in assets. Returns on equity are healthy (TTM (Trailing-Twelve-Months) ~13%), supporting the view that profitability is being generated without heavy balance-sheet risk. The main watch-out is that reported leverage metrics vary meaningfully across periods, so the capital structure signals are not perfectly consistent year-to-year.

Cash Flow

Cash generation is strong and improving: TTM (Trailing-Twelve-Months) operating cash flow is ~$51M and free cash flow is ~$44.8M, with very strong TTM (Trailing-Twelve-Months) free-cash-flow growth. Cash conversion is high, with TTM (Trailing-Twelve-Months) free cash flow roughly matching net income (~97%), indicating good earnings quality. The primary weakness is variability in free cash flow growth historically (including a notable decline in 2023), implying cash generation can be lumpy.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	209.10M	219.89M	213.23M	187.31M	155.19M	148.13M
Gross Profit	177.79M	187.66M	187.14M	174.42M	143.67M	123.23M
EBITDA	41.67M	30.21M	42.44M	47.60M	38.99M	41.61M
Net Income	31.52M	19.17M	30.06M	34.90M	28.60M	25.18M
Balance Sheet
Total Assets	2.45B	2.40B	2.48B	2.57B	2.55B	2.20B
Cash, Cash Equivalents and Short-Term Investments	976.00M	349.73M	372.47M	200.94M	514.93M	670.53M
Total Debt	8.54M	7.43M	0.00	0.00	0.00	0.00
Total Liabilities	2.21B	2.17B	2.25B	2.37B	2.31B	1.94B
Stockholders Equity	243.45M	229.03M	229.81M	206.32M	245.80M	261.16M
Cash Flow
Free Cash Flow	44.79M	29.62M	22.61M	45.74M	30.18M	45.78M
Operating Cash Flow	51.22M	38.95M	36.94M	51.61M	34.55M	47.78M
Investing Cash Flow	-146.27M	3.95M	284.66M	-306.39M	-528.52M	-43.90M
Financing Cash Flow	123.13M	-65.64M	-150.07M	-59.20M	338.37M	462.69M

Cass Information Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CASS, the sentiment is Positive. The current price of 41.71 is below the 20-day moving average (MA) of 42.50, below the 50-day MA of 42.41, and above the 200-day MA of 41.39, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 62.80 is Neutral, neither overbought nor oversold. The STOCH value of 63.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CASS.

Cass Information Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASS	76 Outperform	$588.27M	17.23	11.44%	2.98%	-4.96%	39.42%
MMS	74 Outperform	$5.15B	17.15	18.14%	1.38%	2.36%	11.30%
UNF	70 Outperform	$3.73B	28.44	6.50%	0.71%	0.20%	2.72%
ABM	69 Neutral	$2.77B	17.78	9.10%	2.20%	4.62%	102.72%
CBZ	66 Neutral	$2.14B	25.91	7.44%	―	59.19%	-35.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FA	51 Neutral	$2.35B	-16.10	-12.48%	―	93.41%	-2515.85%

Cass Information Systems Corporate Events

Cass Information Systems Posts Record 2025 Earnings, Raises Dividend

On January 22, 2026, Cass Information Systems reported record results for 2025, with annual net income rising to $35.1 million and diluted earnings per share reaching $2.61, driving returns on average equity and assets to 14.98% and 1.43%, respectively. The company’s performance was underpinned by a 19.8% increase in net interest income, double-digit growth in facility dollar volumes and average accounts and drafts payable, tight control of salaries and commissions through a 5.4% reduction in average headcount, and active capital return via the repurchase of 617,415 shares at an average price of $41.59. In the fourth quarter of 2025, Cass posted net income of $8.2 million and diluted EPS of $0.62, with adjusted net income from continuing operations up 32.9% year-on-year and adjusted EPS up 38.8%, supported by an expanded net interest margin of 3.93%, 13.0% growth in facility dollar volumes, and continued strong asset quality, including no loan charge-offs and a full payoff on its only modified $27.9 million loan. Operationally, Cass consolidated its Waste and Utility businesses into a single Facility division and highlighted growing use of AI-enabled systems to improve efficiency and client experience, while the board on January 20, 2026, declared a fourth-quarter dividend of $0.32 per share payable on March 13, 2026, and continued share repurchases in the fourth quarter, signaling confidence in the company’s financial strength and long-term growth prospects.

The most recent analyst rating on (CASS) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Cass Information Systems stock, see the CASS Stock Forecast page.

Cass Information Systems Authorizes Stock Repurchase Program

On November 6, 2025, Cass Information Systems‘ Board of Directors authorized the repurchase of up to 1,000,000 shares of its common stock, replacing a previous authorization for 500,000 shares. This move aims to provide capital return flexibility, offset stock-based compensation dilution, and reduce share count when opportunities arise, with repurchases funded by the company’s cash on hand.

The most recent analyst rating on (CASS) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Cass Information Systems stock, see the CASS Stock Forecast page.

Cass Information Systems Declares Fourth Quarter Dividend

On October 21, 2025, Cass Information Systems declared a fourth quarter dividend of $0.32 per share, payable on December 15, 2025. The company reported its third quarter 2025 results, showing a net income of $9.1 million and a diluted earnings per share of $0.68. Cass achieved a return on average equity of 15.29% and a net interest margin increase to 3.87%. The company also highlighted technological improvements in its facility line of business, leading to efficiencies in data processing, and anticipates further savings in 2026 from consolidating functions across business lines. Despite a decrease in transportation invoice volumes, transportation dollar volumes increased due to higher freight rates, while facility expense dollar volumes rose significantly due to higher energy usage and new client onboarding.

The most recent analyst rating on (CASS) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Cass Information Systems stock, see the CASS Stock Forecast page.