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Cass Information Systems
(NASDAQ:CASS)
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Rating:79Outperform
Price Target:
$66.00
▲(21.66% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by strong financial performance (high margins and strong cash conversion) and a notably positive recent corporate update (record earnings, improved net interest margin, buybacks, and a declared dividend). Technicals are supportive due to a strong uptrend, but the stock looks overbought near-term, and valuation is reasonable rather than compelling at a ~19.7 P/E with a ~2.27% yield.
Positive Factors
High margins & cash conversion
Sustained high margins and free cash flow roughly equal to net income indicate durable earnings quality and strong cash conversion. That cash profile supports reinvestment, dividends and buybacks, provides a buffer in downturns, and underpins long-term financial flexibility.
Negative Factors
Revenue volatility
Top-line inconsistency—yearly declines followed by rebounds—shows revenue is sensitive to transaction volumes and end-market cycles. That volatility complicates forecasting, makes margin maintenance reliant on cost discipline, and increases execution risk for multi-quarter growth plans.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & cash conversion
Sustained high margins and free cash flow roughly equal to net income indicate durable earnings quality and strong cash conversion. That cash profile supports reinvestment, dividends and buybacks, provides a buffer in downturns, and underpins long-term financial flexibility.
Read all positive factors
Cass Information Systems (CASS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$726.11M
Dividend Yield2.23%
Average Volume (3M)77.38K
Price to Earnings (P/E)20.0
Beta (1Y)0.56
Revenue Growth2.06%
EPS Growth49.36%
CountryUS
Employees910
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)2.84
Shares Outstanding12,806,149
10 Day Avg. Volume68,236
30 Day Avg. Volume77,381
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)2.25
Price to Sales (P/S)2.86
P/FCF Ratio17.23
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$58.50Price Target Upside7.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.96
Revenue Forecast (FY)$204.70M
Cass Information Systems Business Overview & Revenue Model
Company Description
Cass Information Systems, Inc. delivers specialized payment and data management services to a broad array of manufacturing, distribution, and retail businesses across the United States. The company's operations are divided into two main areas: Inf...
How the Company Makes Money
Cass Information Systems primarily makes money through two operating segments: (1) Cass Information Services (payment and information processing) and (2) Cass Commercial Bank (banking). In the Information Services segment, the company generates re...
Cass Information Systems Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
78
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 203.09M | 191.10M | 219.89M | 213.23M | 187.31M | 155.19M |
| Gross Profit | 195.46M | 191.10M | 187.66M | 187.14M | 174.42M | 143.67M |
| EBITDA | 53.43M | 45.96M | 30.21M | 42.44M | 47.60M | 38.99M |
| Net Income | 36.71M | 35.12M | 19.17M | 30.06M | 34.90M | 28.60M |
Balance Sheet | ||||||
| Total Assets | 2.52B | 2.61B | 2.40B | 2.48B | 2.57B | 2.55B |
| Cash, Cash Equivalents and Short-Term Investments | 228.47M | 392.27M | 877.75M | 999.59M | 955.41M | 1.19B |
| Total Debt | 80.00M | 4.51M | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 2.27B | 2.36B | 2.17B | 2.25B | 2.37B | 2.31B |
| Stockholders Equity | 244.66M | 243.00M | 229.03M | 229.81M | 206.32M | 245.80M |
Cash Flow | ||||||
| Free Cash Flow | 41.91M | 31.77M | 29.62M | 22.61M | 45.74M | 30.18M |
| Operating Cash Flow | 48.65M | 37.44M | 38.95M | 36.94M | 51.61M | 34.55M |
| Investing Cash Flow | -198.77M | -145.28M | 3.95M | 284.66M | -306.39M | -528.52M |
| Financing Cash Flow | 160.43M | 150.38M | -65.64M | -150.07M | -59.20M | 338.37M |
Cass Information Systems Risk Analysis
Cass Information Systems disclosed 30 risk factors in its most recent earnings report. Cass Information Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cass Information Systems Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $779.18M | 48.47 | 30.13% | ― | 46.84% | 125.24% | |
79 Outperform | $726.11M | 20.03 | 15.09% | 2.34% | 2.06% | 49.36% | |
72 Outperform | $2.98B | 25.12 | 7.08% | ― | 14.32% | 22.61% | |
71 Outperform | $2.29B | 69.37 | 4.08% | ― | 32.21% | 441.25% | |
66 Neutral | $3.63B | 144.03 | 1.93% | ― | 32.89% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $2.38B | 5.81 | 14.60% | 6.61% | 11.04% | 15.45% |
* Industrials Sector Average
CASS
Cass Information Systems
56.89
16.15
39.64%
CBZ
CBIZ
55.01
-9.69
-14.98%
PAGS
Pagseguro Digital
8.44
0.44
5.55%
PAYS
Paysign
13.82
8.61
165.26%
FLYW
Flywire
18.75
6.47
52.69%
FA
First Advantage
21.23
4.91
30.09%
Cass Information Systems Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Cass Information Systems Posts Record Q2 Earnings, Dividend
Positive
Jul 23, 2026
Cass Information Systems reported record second-quarter 2026 results, with net income rising to $10.6 million and diluted earnings per share reaching $0.81, supported by adjusted net income growth of over 18% year on year. The company expanded its...
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.