Cass Information Systems (CASS) AI Stock Analysis

• Market Cap: $582.35M
• Dividend Yield: 2.85%
• Average Volume (3M): 36.92K
• Price to Earnings (P/E): 31.1
• Beta (1Y): 0.81
• Revenue Growth: 3.13%
• EPS Growth: -36.13%
• Country: US
• Employees: 1,027
• Sector: Industrials
• Sector Strength: 66
• Industry: Specialty Business Services
• EPS (TTM): 1.39
• Shares Outstanding: 13,464,839
• 10 Day Avg. Volume: 33,867
• 30 Day Avg. Volume: 36,923
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.69
• Price to Cash Flow (P/CF): 7.80
• P/FCF Ratio: 6.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $45.00
• Price Target Upside: 3.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Cass Information Systems scores a 64 due to strong financial stability with a debt-free balance sheet and solid cash flow generation. However, declining profitability and operational efficiency limit its performance. Technical indicators suggest a neutral to slightly positive market sentiment, while a high P/E ratio raises valuation concerns, partially offset by a reasonable dividend yield.

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. Strong gross margins and a robust equity base with zero debt reflect stability, but declining profitability and operational efficiency pose 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
199.19M	213.23M	183.83M	154.02M	144.96M
	Gross Profit
187.44M	95.08M	150.72M	125.85M	118.40M
	EBIT
12.47M	88.27M	46.38M	33.82M	30.34M
	EBITDA
0.00	58.59M	0.00	0.00	41.61M
	Net Income Common Stockholders
19.17M	30.06M	34.90M	28.60M	25.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
349.73M	372.47M	955.41M	1.19B	782.52M
	Total Assets
2.40B	2.48B	2.57B	2.55B	2.20B
	Total Debt
0.00	8.48M	9.50M	378.06M	6.18M
	Net Debt
-19.33M	-363.99M	-191.44M	365.76M	-418.61M
	Total Liabilities
2.17B	2.25B	2.37B	1.05B	835.39M
	Stockholders Equity
229.03M	229.81M	206.32M	245.80M	261.16M
Cash Flow		Free Cash Flow
38.95M	22.61M	45.74M	30.18M	45.78M
	Operating Cash Flow
38.95M	36.94M	51.61M	34.55M	47.78M
	Investing Cash Flow
3.95M	284.66M	-306.39M	-528.52M	-43.90M
	Financing Cash Flow
-65.64M	-150.07M	-59.20M	338.37M	462.69M

Cass Information Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.35
• 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 CASS, the sentiment is Positive. The current price of 43.35 is above the 20-day moving average (MA) of 43.11, above the 50-day MA of 42.83, and above the 200-day MA of 41.65, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 52.30 is Neutral, neither overbought nor oversold. The STOCH value of 41.06 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
EBF	66 Neutral	$522.59M	12.68	12.81%	4.98%	-6.12%	-7.93%
CASS	64 Neutral	$582.35M	31.09	8.36%	2.85%	3.13%	-36.13%
Sector *	62 Neutral	$8.07B	13.60	3.76%	3.13%	3.60%	-14.67%
RCMT	58 Neutral	$120.35M	9.29	44.97%	―	5.75%	-15.87%
KELYA	56 Neutral	$460.12M	11.43	-0.05%	2.28%	-10.42%	-101.51%
FORR	51 Neutral	$175.38M	―	-2.45%	―	-10.05%	-288.36%
TBI	44 Neutral	$157.75M	―	-32.53%	―	-17.78%	-820.48%

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.