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Pathward Financial
(NASDAQ:CASH)
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Rating:69Neutral
Price Target:
$81.00
▼(-0.67% Downside)
Action:Downgraded
Date:10/22/26
The score is driven primarily by solid financial performance (strong profitability/returns and improved TTM cash generation) and supportive valuation (low P/E). These positives are tempered by a weaker technical trend (below key longer-term moving averages with negative MACD) and credit/expense-risk items highlighted on the earnings call (elevated NPLs/charge-offs and an investment-driven expense ramp).
Positive Factors
Diversified partner platform
A diversified partner base reduces reliance on any single relationship while supporting recurring distribution for banking and payments products. Extended contracts with Clair and H&R Block reinforce partner durability, and the broader pipeline can support continued growth through existing channels.
Negative Factors
Elevated credit losses
Elevated nonperforming assets and charge-offs can reduce earnings through higher provisions and weaken returns on the lending portfolio. Although management expects normalization, the concentration in previously disclosed credits remains a material execution and credit-quality risk over the near term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified partner platform
A diversified partner base reduces reliance on any single relationship while supporting recurring distribution for banking and payments products. Extended contracts with Clair and H&R Block reinforce partner durability, and the broader pipeline can support continued growth through existing channels.
Read all positive factors
Pathward Financial (CASH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.61B
Dividend Yield0.26%
Average Volume (3M)252.03K
Price to Earnings (P/E)9.5
Beta (1Y)0.87
Revenue Growth-0.51%
EPS Growth3.26%
CountryUS
Employees1,224
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)8.02
Shares Outstanding20,745,540
10 Day Avg. Volume234,890
30 Day Avg. Volume252,031
Financial Highlights & Ratios
PEG Ratio0.96
Price to Book (P/B)2.02
Price to Sales (P/S)2.53
P/FCF Ratio7.32
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue2.10
Enterprise Value/Gross Profit2.34
Enterprise Value/Ebitda6.46
Forecast
1Y Price Target
$90.00Price Target Upside10.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)9.64
Revenue Forecast (FY)$864.90M
Pathward Financial Business Overview & Revenue Model
Company Description
Pathward Financial, Inc. serves as the parent company for Pathward, National Association, providing a broad spectrum of banking products and services throughout the United States. Its operations are structured across three main divisions: Consumer...
How the Company Makes Money
Pathward makes money primarily through a combination of (1) net interest income from lending activities and (2) noninterest income tied to partner-driven banking and payments programs.
1) Net interest income (lending spread): The bank earns inter...
Pathward Financial Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2027
Earnings Call Sentiment Positive
The call was broadly positive. Management reported strong full-year earnings, returns, loan growth, originations, fee income, liquidity, capital generation, partner renewals, and a diversified growth pipeline, while reiterating fiscal 2027 EPS guidance. The principal challenges were elevated nonperforming loans and charge-offs tied to previously disclosed credits, the continued time required to resolve renewable energy projects, upcoming investment-related expense increases, and some pressure and variability from rates, seasonality, and onboarding timelines.Positive Updates
Five Years of Strategic Execution
Management highlighted five years of progress under the CEO, including navigating COVID, rebranding as Pathward, expanding the executive team, reshaping the balance sheet, sustainably growing the business, and strengthening Pathward's position as a trusted platform focused on financial inclusion.
Negative Updates
Elevated Credit Metrics and Charge-Offs
The nonperforming loan and lease ratio increased modestly to 5.61% sequentially. Net charge-offs were $52 million in the quarter, including $20.3 million associated with the commercial finance portfolio. Management said the elevated charge-offs and nonperforming loans remain concentrated in previously disclosed credits.
Read all updates
Q4-2026 Updates
Positive
Negative
Five Years of Strategic Execution
Management highlighted five years of progress under the CEO, including navigating COVID, rebranding as Pathward, expanding the executive team, reshaping the balance sheet, sustainably growing the business, and strengthening Pathward's position as a trusted platform focused on financial inclusion.
Read all positive updates
Company Guidance
For fiscal year 2027, Pathward reiterated guidance of $9.50 to $10 per share, assuming no additional rate changes during the year, an effective tax rate of 18% to 22%, expected secondary market revenues between $5 million to $7 million per quarter, and expected share repurchases; investments in people, processes, and technology are expected to begin in the December quarter, with additional hirings in the first quarter increasing the compensation and benefits run rate earlier in the year while maintaining the normal seasonal pattern and consultants producing modestly elevated spend in the first half of the year. The company expects credit to normalize in 2027, with commercial finance ACL potentially down to roughly a 1.20% to a 1.30% normalized level and provision expense next year more akin to the 120 to a 130 basis point range. The securities portfolio could run down to the $800 million to perhaps a $1 billion range, while revenue growth over the next 12 months is still largely gonna come from existing partners, historically representing 75% to 80% of the uplift year over year, with new partner growth described as a tailwind exiting 2027 and going into 2028 and 2029.Pathward Financial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 803.16M | 685.23M | 668.90M | 611.47M | 523.39M | 515.13M |
| Gross Profit | 722.19M | 616.86M | 589.57M | 491.35M | 461.73M | 458.50M |
| EBITDA | 261.68M | 282.78M | 276.38M | 220.00M | 241.90M | 215.49M |
| Net Income | 175.73M | 185.87M | 183.22M | 143.27M | 151.13M | 141.71M |
Balance Sheet | ||||||
| Total Assets | 7.31B | 7.17B | 7.55B | 7.54B | 6.75B | 6.69B |
| Cash, Cash Equivalents and Short-Term Investments | 1.37B | 1.09B | 1.90B | 2.18B | 2.27B | 2.18B |
| Total Debt | 201.03M | 42.46M | 410.35M | 46.87M | 36.03M | 98.03M |
| Total Liabilities | 6.46B | 6.31B | 6.71B | 6.88B | 6.10B | 5.82B |
| Stockholders Equity | 850.90M | 858.04M | 839.88M | 651.63M | 645.17M | 870.73M |
Cash Flow | ||||||
| Free Cash Flow | 594.28M | 236.59M | 176.78M | -146.79M | -170.06M | 517.62M |
| Operating Cash Flow | 696.87M | 450.62M | 453.54M | 303.11M | 268.81M | 581.64M |
| Investing Cash Flow | -628.86M | 25.84M | -227.66M | -920.76M | -310.87M | -1.12B |
| Financing Cash Flow | -173.68M | -513.03M | -443.20M | 604.86M | 117.82M | 422.93M |
Pathward Financial Technical Analysis
Neutral
81.55
Price Trends
77.33
Positive
81.89
Negative
84.90
Negative
Market Momentum
-0.48
Negative
61.10
Neutral
91.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CASH, the sentiment is Neutral. The current price of 81.55 is above the 20-day moving average (MA) of 72.94, above the 50-day MA of 77.33, and below the 200-day MA of 84.90, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 61.10 is Neutral, neither overbought nor oversold. The STOCH value of 91.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CASH.
Pathward Financial Risk Analysis
Pathward Financial disclosed 1 risk factors in its most recent earnings report. Pathward Financial reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pathward Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.60B | 14.29 | 11.35% | 2.11% | -1.73% | 1.03% | |
70 Outperform | $2.86B | 9.90 | 13.59% | ― | 8.29% | 67.64% | |
69 Neutral | $1.61B | 9.47 | 20.79% | 0.26% | -0.51% | 3.26% | |
69 Neutral | $2.07B | 9.44 | 32.32% | ― | 2.65% | 13.98% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $1.52B | 32.21 | 5.25% | 22.10% | 12.64% | 586.98% | |
56 Neutral | $691.25M | -180.88 | -0.80% | ― | 7.30% | -106.97% |
* Financial Sector Average
CASH
Pathward Financial
77.50
7.50
10.72%
RBCAA
Republic Bancorp
91.60
25.00
37.54%
CUBI
Customers Bancorp
84.54
15.64
22.70%
TBBK
Bancorp
50.86
-27.94
-35.46%
TFIN
Triumph Financial
63.45
3.91
6.57%
CCB
Coastal Financial
45.22
-61.52
-57.64%
Pathward Financial Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Pathward Financial Reports Stable Q4 Earnings, Strategic Progress
Neutral
Oct 21, 2026
Pathward Financial reported unaudited results for the fourth quarter and fiscal year ended September 30, 2026, posting quarterly net income of $38.6 million, or $1.85 per diluted share, essentially flat versus a year earlier, and fiscal 2026 net i...
Business Operations and StrategyExecutive/Board Changes
Pathward Financial announces president resignation and succession plan
Neutral
Sep 17, 2026
Pathward Financial, Inc. reported that President Anthony Sharett resigned from his role at the company and its subsidiary Pathward, N.A., effective October 23, 2026, after notifying the board on September 14, 2026. The company plans to execute its...
Business Operations and StrategyDividends
Pathward Financial Declares Fourth-Quarter 2026 Cash Dividend
Positive
Aug 20, 2026
On August 20, 2026, Pathward Financial, Inc. announced a cash dividend of $0.05 per share for the fourth fiscal quarter of 2026, payable on October 1, 2026 to shareholders of record as of September 10, 2026. As of June 30, 2026, the company report...
Business Operations and StrategyStock BuybackFinancial Disclosures
Pathward Financial Reports Lower Q3 2026 Earnings
Negative
Jul 22, 2026
Pathward Financial reported unaudited net income of $29.0 million, or $1.37 per diluted share, for its fiscal third quarter ended June 30, 2026, down from $42.1 million, or $1.81 per diluted share, a year earlier, as credit performance was pressur...
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.