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Cass Information (CASS)
:CASS

Cass Information Systems (CASS) AI Stock Analysis

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Cass Information Systems

(NASDAQ:CASS)

Rating:61Neutral
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 (CASS) vs. SPDR S&P 500 ETF (SPY)

Cass Information Systems Business Overview & Revenue Model

Company DescriptionCass 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 MoneyCass 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
65
Positive
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
75
Positive
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
70
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
207.55M219.89M213.23M183.83M146.60M139.92M
Gross Profit
180.69M75.56M95.08M175.95M125.85M118.40M
EBIT
-68.28M12.47M37.47M46.38M33.82M30.34M
EBITDA
27.04M30.21M42.44M0.000.0041.61M
Net Income Common Stockholders
20.98M19.17M30.06M34.90M28.60M25.18M
Balance SheetCash, Cash Equivalents and Short-Term Investments
797.18M349.73M372.47M200.94M514.93M782.52M
Total Assets
2.32B2.40B2.48B2.57B2.55B2.20B
Total Debt
0.000.008.48M9.50M378.06M6.18M
Net Debt
-220.67M-19.33M-363.99M-200.94M-514.93M-670.53M
Total Liabilities
2.08B2.17B2.25B2.37B2.31B1.94B
Stockholders Equity
234.25M229.03M229.81M206.32M245.80M261.16M
Cash FlowFree Cash Flow
42.45M29.62M22.61M45.74M30.18M45.78M
Operating Cash Flow
50.69M38.95M36.94M51.61M34.55M47.78M
Investing Cash Flow
4.90M3.95M284.66M-306.39M-528.52M-43.90M
Financing Cash Flow
-27.72M-65.64M-150.07M-59.20M338.37M462.69M

Cass Information Systems Technical Analysis

Technical Analysis Sentiment
Positive
Last Price42.68
Price Trends
50DMA
41.38
Positive
100DMA
41.91
Positive
200DMA
41.71
Positive
Market Momentum
MACD
0.24
Negative
RSI
55.37
Neutral
STOCH
75.10
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 42.68 is above the 20-day moving average (MA) of 42.42, above the 50-day MA of 41.38, and above the 200-day MA of 41.71, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 55.37 is Neutral, neither overbought nor oversold. The STOCH value of 75.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CASS.

Cass Information Systems Risk Analysis

Cass Information Systems disclosed 30 risk factors in its most recent earnings report. Cass Information Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Cass Information Systems Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
EBEBF
77
Outperform
$484.69M12.2212.34%5.36%-6.07%-6.25%
72
Outperform
$169.09M13.1742.38%8.53%-16.64%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
61
Neutral
$575.42M28.168.87%2.88%-1.70%-29.97%
54
Neutral
$429.53M11.43-1.60%2.44%-3.49%-140.04%
TBTBI
54
Neutral
$184.26M-36.98%-16.76%-1127.93%
52
Neutral
$208.74M-45.64%-9.61%-18170.36%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CASS
Cass Information Systems
42.68
2.37
5.88%
EBF
Ennis
18.73
0.75
4.17%
FORR
Forrester Research
10.85
-5.93
-35.34%
KELYA
Kelly Services
12.15
-8.81
-42.03%
RCMT
Rcm Technologies
22.89
3.42
17.57%
TBI
Trueblue
6.52
-4.11
-38.66%

Cass Information Systems Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Cass Information Systems Updates Governance and Compensation
Neutral
Jan 24, 2025

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.

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.