Cass Information Systems (CASS) AI Stock Analysis

• Market Cap: $569.87M
• Dividend Yield: 2.85%
• Average Volume (3M): 65.30K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.74
• Revenue Growth: -3.57%
• EPS Growth: -6.69%
• Country: US
• Employees: 1,008
• Sector: Industrials
• Sector Strength: 79
• Industry: Specialty Business Services
• EPS (TTM): 0.38
• Shares Outstanding: 13,216,006
• 10 Day Avg. Volume: 53,388
• 30 Day Avg. Volume: 65,295
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 1.98
• Enterprise Value/Ebitda: 13.83
• 1Y Price Target: $50.00
• Price Target Upside: 15.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ―

Cass Information Systems' overall stock score reflects a financially stable company with strong liquidity and no debt, yet facing profitability challenges. Technical indicators suggest a bearish trend, and the stock is relatively overvalued with a P/E ratio of 25.81, although the dividend yield offers some investor return. Without additional insights from earnings calls or corporate events, the score is primarily driven by financial performance and technical analysis.

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 makes money through a diversified revenue model primarily driven by service fees from its comprehensive expense management solutions. The company's key revenue streams include transaction-based fees for processing freight and utility invoices, payment facilitation, and providing detailed analytics and reporting services. Cass partners with a wide array of businesses, from large corporations to mid-sized companies, leveraging its sophisticated technology platform to deliver cost-saving and efficiency-enhancing solutions. Additionally, the company benefits from interest income generated from funds held during the payment processing cycle, which also contributes to its financial earnings.

Cass Information Systems Financial Statement Overview

Summary

Cass Information Systems presents a mixed financial performance. The income statement shows declining profitability despite strong gross margins, while the balance sheet highlights a robust equity base with zero debt. Cash flow analysis reveals steady cash generation and strong liquidity but suggests operational efficiency concerns. Overall, the company is financially stable but faces profitability challenges.

Income Statement

Cass Information Systems shows a fluctuating revenue trend with a recent decline from 2023 to 2024. The gross profit margin remains strong at approximately 94%, reflecting efficient cost management. However, the net profit margin decreased significantly, indicating rising expenses or reduced operational efficiency. The EBIT margin also fell sharply, pointing towards declining operational profitability.

Balance Sheet

The balance sheet reveals a stable equity position with an equity ratio of about 10%. The company has no debt as of 2024, enhancing financial stability. However, the return on equity dropped due to lower net income, suggesting less efficient use of equity to generate profits.

Cash Flow

Operating cash flow improved slightly, indicating stable cash generation ability. The free cash flow grew significantly, reflecting effective cash management, though the ratio to net income indicates operational challenges. The company maintains strong liquidity with substantial cash reserves, despite reduced financing inflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	216.37M	219.89M	213.23M	183.83M	146.60M	139.92M
Gross Profit	189.11M	190.24M	95.08M	175.95M	125.85M	118.40M
EBITDA	27.04M	30.21M	42.44M	0.00	0.00	41.61M
Net Income	20.98M	19.17M	30.06M	34.90M	28.60M	25.18M
Balance Sheet
Total Assets	2.32B	2.40B	2.48B	2.57B	2.55B	2.20B
Cash, Cash Equivalents and Short-Term Investments	220.67M	349.73M	372.47M	200.94M	514.93M	782.52M
Total Debt	0.00	0.00	8.48M	9.50M	378.06M	6.18M
Total Liabilities	2.08B	2.17B	2.25B	2.37B	2.31B	1.94B
Stockholders Equity	234.25M	229.03M	229.81M	206.32M	245.80M	261.16M
Cash Flow
Free Cash Flow	42.45M	29.62M	22.61M	45.74M	30.18M	45.78M
Operating Cash Flow	50.69M	38.95M	36.94M	51.61M	34.55M	47.78M
Investing Cash Flow	4.90M	3.95M	284.66M	-306.39M	-528.52M	-43.90M
Financing Cash Flow	-27.72M	-65.64M	-150.07M	-59.20M	338.37M	462.69M

Cass Information Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.12
• 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 43.12 is above the 20-day moving average (MA) of 42.33, above the 50-day MA of 42.92, and above the 200-day MA of 42.23, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 54.71 is Neutral, neither overbought nor oversold. The STOCH value of 69.29 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
MMS	76 Outperform	$4.95B	16.20	17.61%	1.36%	3.40%	13.75%
ABM	75 Outperform	$3.06B	39.36	4.30%	2.07%	3.52%	-67.27%
UNF	74 Outperform	$3.17B	21.84	7.15%	0.78%	4.18%	18.93%
CBZ	65 Neutral	$3.48B	37.22	7.84%	―	46.49%	-25.62%
Sector *	64 Neutral	$10.74B	15.86	8.15%	2.00%	2.70%	-15.17%
CASS	61 Neutral	$569.87M	23.18	9.03%	2.85%	-3.57%	-6.69%
FA	52 Neutral	$2.85B	549.40	-13.57%	―	65.34%	-633.72%

Cass Information Systems Corporate Events

Cass Information Systems Updates Governance and Compensation

On January 23, 2025, Cass Information Systems granted restricted stock units (RSUs) to its executive officers as part of their long-term incentive compensation program, replacing restricted stock in consultation with a compensation consultant. Additionally, on January 21, 2025, the company adopted amended bylaws to declassify its board and update advance notice requirements for shareholder proposals and nominations, reflecting a shift towards more streamlined governance.