Cadence Bank (CADE) AI Stock Analysis

• Market Cap: $6.87B
• Dividend Yield: 3.04%
• Average Volume (3M): 4.34M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.24
• Revenue Growth: 14.40%
• EPS Growth: N/A
• Country: US
• Employees: 5,356
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.67
• Shares Outstanding: 182,732,960
• 10 Day Avg. Volume: 8,272,035
• 30 Day Avg. Volume: 4,338,212
• 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: 1.27
• Enterprise Value/Revenue: 3.35
• Enterprise Value/Gross Profit: 4.99
• Enterprise Value/Ebitda: 10.67
• 1Y Price Target: $43.67
• Price Target Upside: 16.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: $42.00 ▲(11.76% Upside)

Cadence Bank's overall stock score reflects strong financial performance and positive earnings call sentiment, driven by successful acquisitions and strategic growth. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. However, technical indicators suggest caution due to potential bearish momentum, and liquidity management requires attention.

Positive Factors

Successful Acquisition

The acquisition of Industry Bank Shares expands Cadence Bank's footprint in Central Texas and Georgia, enhancing market presence and customer base, which supports long-term growth and strategic positioning.

Net Interest Margin Improvement

Improvement in net interest margin indicates better profitability from lending activities, driven by improved securities yields and reduced funding costs, which strengthens the bank's earnings potential.

Revenue and Deposit Growth

Significant growth in deposits reflects increased customer trust and financial stability, providing a strong base for future lending and investment activities, supporting sustainable revenue growth.

Negative Factors

Decline in Revenue Growth

A significant decline in revenue growth suggests potential challenges in maintaining market competitiveness and could impact long-term profitability if not addressed through strategic initiatives.

Decline in Free Cash Flow

Reduced free cash flow growth may limit the bank's ability to invest in new opportunities, pay down debt, or return capital to shareholders, potentially affecting long-term financial flexibility.

Challenges with Mortgage Banking

Declining mortgage banking revenue due to seasonal factors and MSR adjustments could signal ongoing challenges in this segment, affecting overall revenue diversification and stability.

Cadence Bank Business Overview & Revenue Model

Company Description

Cadence Bank (CADE) is a financial institution that provides a diverse range of banking and financial services primarily to individual consumers, small businesses, and commercial clients. The bank operates in various sectors, including retail banking, commercial banking, and wealth management. Its core products and services encompass checking and savings accounts, loans (including mortgages, personal loans, and business loans), credit cards, and investment services, all designed to meet the financial needs of its customers across multiple markets.

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 demonstrates strong profitability and operational efficiency, with robust profit margins and a balanced debt profile. However, the significant decline in revenue growth and free cash flow growth in the TTM raises concerns about future growth prospects. The company maintains a stable return on equity, but liquidity management needs attention to ensure sustainable financial health.

Income Statement

Cadence Bank's income statement shows a strong gross profit margin of 67.07% for TTM, indicating efficient cost management. However, the revenue growth rate has declined by 34.8% in the TTM, which is a concern. The net profit margin of 20.64% remains healthy, and the EBIT and EBITDA margins are solid at 27.99% and 31.62%, respectively, suggesting good operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.51 in the TTM, indicating a balanced approach to leveraging. The return on equity is stable at 9.43%, showing consistent profitability. The equity ratio is not explicitly calculated but appears stable given the equity and asset figures, suggesting a sound financial position.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 7.8% in the TTM, which is a concern. The operating cash flow to net income ratio is low at 1.63%, indicating potential liquidity constraints. However, the free cash flow to net income ratio is strong at 91.82%, showing effective cash generation relative to earnings.

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: 37.58
• 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 CADE, the sentiment is Positive. The current price of 37.58 is above the 20-day moving average (MA) of 37.55, above the 50-day MA of 37.43, and above the 200-day MA of 33.15, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.57 is Neutral, neither overbought nor oversold. The STOCH value of 70.95 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	―	$6.87B	13.57	9.10%	3.04%	14.40%	―
BOKF	―	$6.61B	12.45	9.13%	2.18%	-2.81%	14.96%
PB	―	$6.32B	11.89	7.09%	3.67%	0.55%	19.13%
GGAL	―	$9.97B	8.56	22.42%	1.39%	-42.92%	-21.46%
PNFP	―	$6.65B	10.89	9.44%	1.08%	7.76%	49.85%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SNV	―	$6.21B	8.35	14.32%	3.47%	8.95%	142.83%

Cadence Bank Corporate Events

Cadence Bank Reports Strong Q3 2025 Results

Cadence Bank is a regional bank offering a wide range of banking, investment, trust, and mortgage services across the Southern United States and Texas. In its third-quarter 2025 financial results, Cadence Bank reported a net income of $127.5 million, or $0.67 per diluted share, with an adjusted net income of $152.8 million, or $0.81 per diluted share. The bank’s net interest margin improved to 3.46%, and it completed the acquisition and integration of Industry Bancshares, Inc., adding $4.1 billion in assets. Total loans increased by $1.3 billion, and deposits grew by $3.4 billion, driven by recent acquisitions. Cadence Bank maintained strong regulatory capital ratios, with a Common Equity Tier 1 Capital of 11.5%. Looking forward, the bank’s management remains focused on growth and improving shareholder value through strategic acquisitions and operational efficiencies.

Cadence Bank’s Earnings Call Highlights Strategic Growth

The recent earnings call for Cadence Bank was marked by an overall positive sentiment, driven by successful acquisitions and a strong financial performance. The bank reported improvements in revenue, deposits, and net interest margin, although it faced challenges in mortgage banking revenue and CRE paydowns. Despite these hurdles, the sentiment remained optimistic due to the bank’s significant achievements and strategic growth initiatives.

Cadence Bank’s Earnings Call Highlights Robust Growth

Cadence Bank’s recent earnings call painted a positive picture, highlighting robust growth in net income, loans, and deposits, largely driven by successful mergers and acquisitions. Despite facing challenges such as a decline in net interest margin and increased expenses, the overall sentiment was optimistic, with the positives significantly outweighing the negatives.