Fundamental analysis: Cass Information Systems, Inc. (CASS)

Awarener score: 6.6

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (could not be estimated), the business stability (Good) and growth (Modest), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

Business growth has been almost stagnant. It's been similar to peer companies.
Cass Information Systems, Inc. business trend stability is good. The higher the stability, the lower the risk. It looks slightly worse than rivals.

Margins score: 7.3

CASS profit margins -on goods and services sold- are usually very poor. They stand mediocre against rival companies.
Business profit on sales tends to be sufficient. It's encouraging in relation to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain excellent in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still better than most similar companies.
Profits -before income taxes- are usually excellent considering total sales, and remain top tier when measured against rivals.
Total net profit tends to be excellent when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 4.4

Cass Information Systems, Inc. profit -on goods and services sold- has been growing at a very good pace. It's been excellent in relation to competitors.
In recent years, earnings -on operations- have been growing at an excellent step, which has been top-notch against comparable firms.
Profits -available to repay debt and purchase properties- tended to shrink, which compares substantially worse when measured against peer enterprises.
Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be lacking compared to similar stocks.
In past years, growth on profits -before income taxes- was almost stagnant. It was mediocre against rivals.
In the previous years, growth on total net profit has been almost null, and weak when measured against peer companies.
Earnings per share have been almost stagnant in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 7.0

CASS had hardly to pay income taxes in relation to profits made in the past years. It's been well ranked against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 7.2

Cass Information Systems, Inc. usually gets sufficient returns on the resources it controls. It proves below average when measured against peer firms.
The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
There's usually abundant profitability -in relation to owned resources-. It ranks more than average in relation to competitors.
In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 4.0

CASS on average doesn't generate genuine funds, so to buy or replace property, plants and equipment must either burn existing cash or increase debt. It stands below average when measured against rival firms.
The company is usually replacing the property, plant, and equipment that gets old, keeping its operating capabilities up to date, which is more than average in relation to industry peers.
In the past twelve months it paid some dividends, considering the current stock price. It came well ranked against competitors.
Dividend payments have been more or less stable in recent years. The company has behaved lacking compared to similar firms.
The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against comparable companies.
The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in a weak position compared to rivals.
The company generates very few genuine funds. Investor rewards must be paid burning existing cash or by borrowing money, which isn't sustainable in the long run. Unless business prospects improve greatly, stockholder compensation could be at risk. It still looks last-in-rank when measured against competitors.

Balance Sheet score: 6.6

Cass Information Systems, Inc. intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be more than average in relation to peer companies.
The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be in a very weak position compared to similar firms.
All resources are company owned, with virtually no financial debt. Financial position is outstanding. The company could significantly borrow money if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains top-notch against rival firms.
Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks below average when measured against rivals.
For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's lacking compared to peer firms.
For every dollar of short-term obligations, the company has roughly another of cash and equivalents, which is somewhat better than similar enterprises.
Usually, sales are on somewhat less than three months credit. It still ranks weak when measured against peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes less than three months from the purchase to charging customers. It happens to be slightly worse than peers.
On average pays suppliers many months after the purchase. It ranks top tier when measured against industry peers.
The company charges its customers long before it must pay its suppliers, so the more it sales, the more free funds it gets. It's impressive in relation to similar companies.
Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
There is insufficient data to conclude on the relationship of EBITDA and debt for this company. It ranks unknown against comparable enterprises.
Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks a slight improvement compared to similar firms.
Resource exploitation is very low when yearly sales are considered, business volume must be greatly increased. This metric is normally tied to the industry where the firm belongs. It's still bottom tier against peer companies.

Valuation score: 5.6

Cass Information Systems, Inc. has an unknown adjusted Price-to-Earnings ratio, so we cannot comment on that. It happens to be a necessary comparison against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains close to average when compared to peers.
There is insufficient information on the genuine funds generation capability showed in the past twelve months, which stands as an incognita in relation to similar companies.
Unfortunately, lack of enough yearly data impaired our ability to estimate the normal earnings power. It's still an unknown variable to measure against industry firms.
In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
We are unsure on the relationship between net financial position and market capitalization of the stock. It looks we will not be able to reach a conclusion regarding similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be more or less reasonable, but hardly cheap. It ranks similar to peer companies.
Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a very weak position compared to rival firms.
The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains somewhat worse than peer firms.
We could not gauge an alternative metric of earnings power of the past twelve months. It happens to be an interesting metric to relate to industry peers.
An alternate metric on the usual genuine-funds generation ability could not be provided. It's still unknown against peer companies.

Total score: 6.0

Company at a glance: Cass Information Systems, Inc. (CASS)

Sector, industry: Industrials, Specialty Business Services

Market Cap: 0.55 billions

Revenues TTM: 0.19 billions

Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. It operates through two segments, Information Services and Banking Services. The company's services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. It also processes and pays facility-related invoices, such as electricity, gas, waste, and telecommunications expenses; and provides telecom expense management solutions. In addition, the company, through its banking subsidiary, Cass Commercial Bank, provides a range of banking products and services, such as checking, savings, and time deposit accounts; commercial, industrial, and real estate loans; and cash management services to privately-owned businesses and faith-related ministries. Further, it provides B2B payment platform for clients that require an agile fintech partner. It operates through its banking facility near downtown St. Louis, Missouri; operating branch in the Bridgeton, Missouri; and leased facilities in Fenton, Missouri and Colorado Springs, Colorado. The company was formerly known as Cass Commercial Corporation and changed its name to Cass Information Systems, Inc. in January 2001. Cass Information Systems, Inc. was founded in 1906 and is headquartered in St. Louis, Missouri.