Cadence Bank (CADE) AI Stock Analysis

• Market Cap: $6.90B
• Dividend Yield: 2.85%
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.23
• Revenue Growth: 18.01%
• EPS Growth: -12.51%
• Country: US
• Employees: 5,356
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.69
• Shares Outstanding: 182,732,960
• 10 Day Avg. Volume: 1,529,406
• 30 Day Avg. Volume: 1,873,964
• PEG Ratio: -3.19
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 2.17
• P/FCF Ratio: 8.10
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 3.26
• Enterprise Value/Gross Profit: 4.86
• Enterprise Value/Ebitda: 10.39
• 1Y Price Target: $41.67
• Price Target Upside: 10.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 75 Outperform
• Price Target: $42.00 ▲(11.17% Upside)

Cadence Bank's overall stock score is driven by strong earnings call performance and positive technical indicators. While financial performance shows robust profitability, concerns about revenue and cash flow growth temper the outlook. Valuation remains reasonable, and the positive sentiment from recent strategic expansions supports the stock's potential.

Positive Factors

Successful M&A Activity

The acquisitions expand Cadence Bank's presence in Georgia and Central Texas, enhancing market position and growth potential.

Organic Loan Growth

Strong loan growth, especially in Texas, indicates robust demand and strengthens the bank's revenue base and market share.

Strong Revenue Growth

Consistent revenue growth reflects effective business strategies and operational efficiency, supporting long-term financial health.

Negative Factors

Decline in Net Interest Margin

A declining net interest margin can pressure profitability, affecting the bank's ability to generate income from its core lending activities.

Increase in Criticized Loans

Rising criticized loans may indicate potential credit quality issues, posing risks to asset quality and future earnings stability.

Decline in Revenue Growth

A significant decline in revenue growth suggests challenges in sustaining sales momentum, impacting long-term growth prospects.

Cadence Bank Business Overview & Revenue Model

Company Description

Cadence Bank provides commercial banking and financial services in the United States. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services. The company's products and services also comprise small business administration lending, foreign exchange, wealth management, investment and trust, financial planning, retirement plan management, and personal and business insurance services. As of March 3, 2022, it operated approximately 400 branch locations across the South, Midwest, and Texas. The company was incorporated in 1876 and is headquartered in Tupelo, Mississippi.

How the Company Makes Money

Cadence Bank generates revenue through several key streams. Primarily, it earns interest income from loans issued to customers, including personal, mortgage, and commercial loans, which are typically charged at higher interest rates compared to the interest paid on deposits. Additionally, the bank collects fees from various services such as account maintenance, ATM usage, overdrafts, and transaction services. Wealth management and investment advisory services also contribute to revenue through management fees and commissions. Significant partnerships with other financial institutions and businesses enhance its product offerings and customer reach, further supporting its earnings.

Cadence Bank Financial Statement Overview

Summary

Cadence Bank exhibits strong financial health with robust revenue growth and effective cost management. While there are slight concerns about cash reserves, the overall financial position is solid, supported by prudent leverage and strong cash flow generation.

Income Statement

Cadence Bank demonstrated strong financial performance with notable growth in total revenue, increasing by approximately 40% from the previous year. The gross profit margin and net profit margin are robust, reflecting effective cost management and operational efficiency. However, EBIT and EBITDA margins show some variability, indicating potential fluctuations in operating expenses or other non-operating costs.

Balance Sheet

The balance sheet shows a solid equity base with a consistent equity ratio around 12%. The debt-to-equity ratio is low, signaling prudent leverage management, which is crucial in the banking sector. However, slight decreases in cash and short-term investments could indicate liquidity management challenges or strategic allocation changes.

Cash Flow

Operating cash flow is healthy and growing, with a positive free cash flow trajectory. The free cash flow to net income ratio indicates strong cash generation relative to accounting profits, although the operating cash flow to net income ratio has shown some fluctuations over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.60B	2.90B	2.19B	1.90B	1.12B	1.14B
Gross Profit	1.74B	1.72B	1.16B	1.69B	910.55M	938.43M
EBITDA	816.39M	878.76M	237.70M	832.84M	400.67M	362.66M
Net Income	537.02M	523.60M	542.30M	463.24M	195.16M	228.05M
Balance Sheet
Total Assets	50.38B	47.02B	48.93B	48.65B	47.67B	24.08B
Cash, Cash Equivalents and Short-Term Investments	10.37B	9.03B	12.31B	13.94B	16.90B	6.65B
Total Debt	3.03B	34.32M	4.39B	4.47B	1.76B	939.37M
Total Liabilities	44.46B	41.45B	43.77B	44.34B	42.42B	21.26B
Stockholders Equity	5.92B	5.57B	5.17B	4.31B	5.25B	2.82B
Cash Flow
Free Cash Flow	581.13M	776.59M	465.22M	833.42M	1.10B	156.94M
Operating Cash Flow	646.63M	856.66M	563.51M	927.91M	1.17B	222.89M
Investing Cash Flow	-2.81B	-782.16M	2.40B	-1.71B	-3.15B	-2.43B
Financing Cash Flow	1.09B	-2.58B	-723.05M	1.49B	2.86B	2.29B

Cadence Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.78
• 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 CADE, the sentiment is Positive. The current price of 37.78 is above the 20-day moving average (MA) of 37.32, above the 50-day MA of 36.35, and above the 200-day MA of 32.75, indicating a bullish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 58.73 is Neutral, neither overbought nor oversold. The STOCH value of 58.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CADE.

Cadence Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CADE	75 Outperform	$6.90B	13.40	9.59%	2.85%	18.01%	-12.51%
BOKF	75 Outperform	$7.21B	13.55	9.54%	2.01%	-0.54%	16.85%
PNFP	72 Outperform	$7.24B	12.37	9.32%	1.01%	10.19%	48.39%
PB	71 Outperform	$6.25B	12.00	7.02%	3.52%	3.65%	20.33%
GGAL	69 Neutral	$4.93B	4.04	22.42%	2.47%	-42.92%	-21.46%
SNV	69 Neutral	$6.76B	9.35	14.71%	3.18%	11.52%	220.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%