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Pathward Financial
(NASDAQ:CASH)
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Rating:71Outperform
Price Target:
$80.00
▼(-1.90% Downside)
Action:Reiterated
Date:08/21/26
CASH scores well primarily on solid underlying financial performance (strong profitability/returns and improved TTM cash generation) and attractive valuation (low P/E and ~2.39% yield). These positives are tempered by weak near-term technicals (negative MACD and price below key moving averages) and earnings-call risk signals tied to recent idiosyncratic credit losses and higher nonperforming loans, despite upbeat longer-term EPS guidance.
Positive Factors
Strong profitability and returns
Pathward’s strong margins and returns show that its specialty banking and payments model is generating substantial earnings from its capital base. This profitability provides internal capacity to invest in technology, support growth, and absorb normal business fluctuations over the next several quarters.
Negative Factors
Elevated credit losses and nonperforming loans
Recent credit deterioration creates a material risk to earnings durability because larger reserves and nonaccrual loans reduce income and may require further provisioning. Concentration of the NPL increase in related renewable-energy projects also raises uncertainty around recovery timing and losses.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and returns
Pathward’s strong margins and returns show that its specialty banking and payments model is generating substantial earnings from its capital base. This profitability provides internal capacity to invest in technology, support growth, and absorb normal business fluctuations over the next several quarters.
Read all positive factors
Pathward Financial (CASH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.50B
Dividend Yield0.28%
Average Volume (3M)236.93K
Price to Earnings (P/E)9.0
Beta (1Y)0.92
Revenue Growth1.95%
EPS Growth6.07%
CountryUS
Employees1,182
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)8.02
Shares Outstanding20,773,361
10 Day Avg. Volume228,891
30 Day Avg. Volume236,927
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 Cap1.28
Enterprise Value/Revenue2.39
Enterprise Value/Gross Profit2.65
Enterprise Value/Ebitda7.33
Forecast
1Y Price Target
$105.00Price Target Upside28.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)9.6
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:Jul 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Neutral
The call described a generally healthy operating performance with solid revenue growth, strong returns, sizable liquidity, active share repurchases, and a constructive pipeline and FY2027 guidance. However, the quarter was materially impacted by specific credit losses (two large reserves, a CECL build and a suspected fraud), which reduced near-term EPS and increased nonperforming loans. Management characterized these as idiosyncratic events, maintained confidence in the broader portfolio and balance sheet, and emphasized ongoing discipline in underwriting, expense management, and capital deployment.Positive Updates
Profitability and Earnings
Generated $29 million of net income and diluted EPS of $1.37 in Q3 FY2026; updated FY2026 EPS guidance to $7.80–$8.20 and introduced FY2027 EPS guidance of $9.50–$10.00, indicating expected earnings growth into FY2027.
Negative Updates
Elevated Credit Provisioning in Quarter
Provision for commercial finance credit in the quarter was roughly $34 million, with approximately $28–30 million of that attributed to specific reserves on two larger loans and CECL adjustments — management noted this reduced EPS by about $1 per share and reduced FY2026 guidance.
Read all updates
Q3-2026 Updates
Positive
Negative
Profitability and Earnings
Generated $29 million of net income and diluted EPS of $1.37 in Q3 FY2026; updated FY2026 EPS guidance to $7.80–$8.20 and introduced FY2027 EPS guidance of $9.50–$10.00, indicating expected earnings growth into FY2027.
Read all positive updates
Company Guidance
Pathward updated fiscal 2026 EPS guidance to $7.80–$8.20 (assuming no further rate changes, an effective tax rate of 16–18% and ongoing share repurchases) and introduced fiscal 2027 guidance of $9.50–$10.00 (assuming no rate changes, an effective tax rate of 18–22%, quarterly secondary market revenues of $5–$7M and expected share repurchases of roughly 70–80% of net income). Management said Q3’s commercial finance provision (~$34M, with roughly $28–30M tied to the two specific loans — about $1.00 per share) weighed on the FY26 guide but underlying trends remain healthy: adjusted NIM stable at 5.27% (GAAP NIM 6.59%), loans & leases +8% y/y, $760M of originations in the quarter, liquidity of $2.7B, and the company repurchased ~304k shares at an average $92.18 with ~3.1M shares still available under the buyback program.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
Negative
81.55
Price Trends
80.54
Negative
82.85
Negative
84.89
Negative
Market Momentum
-2.43
Negative
34.07
Neutral
29.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CASH, the sentiment is Negative. The current price of 81.55 is above the 20-day moving average (MA) of 74.62, above the 50-day MA of 80.54, and below the 200-day MA of 84.89, indicating a bearish trend. The MACD of -2.43 indicates Negative momentum. The RSI at 34.07 is Neutral, neither overbought nor oversold. The STOCH value of 29.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $1.62B | 14.02 | 11.44% | 2.10% | -2.69% | 2.86% | |
71 Outperform | $1.50B | 8.97 | 20.58% | 0.28% | 1.95% | 6.07% | |
69 Neutral | $2.01B | 8.95 | 32.32% | ― | 2.65% | 13.98% | |
68 Neutral | $2.52B | 8.74 | 13.57% | ― | 11.55% | 103.48% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $1.50B | 42.31 | 4.09% | 22.10% | 9.21% | 234.88% | |
56 Neutral | $652.73M | -162.80 | -0.80% | ― | 7.30% | -106.97% |
* Financial Sector Average
CASH
Pathward Financial
72.09
0.04
0.06%
RBCAA
Republic Bancorp
92.35
25.29
37.71%
CUBI
Customers Bancorp
74.60
10.81
16.95%
TBBK
Bancorp
49.33
-23.23
-32.01%
TFIN
Triumph Financial
62.78
15.83
33.72%
CCB
Coastal Financial
42.70
-60.93
-58.80%
Pathward Financial Corporate Events
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.