Cass Information Systems, Inc. (CASS) | Investment Case

1. Company Snapshot

1.a. Company Description

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.

Show Full description

1.b. Last Insights on CASS

Cass Information Systems' recent performance was negatively driven by its Q4 2024 earnings miss, where the company reported $0.33 per share, missing the consensus estimate of $0.44 per share. Additionally, the acquisition of AcuAudit platform from Acuitive Solutions on January 2, 2025, may have been overshadowed by the earnings miss. Furthermore, the company's CEO discussion on invoice fraud and payment issues on March 3, 2025, may indicate ongoing challenges in the industry. The short-term outlook remains uncertain due to these factors.

1.c. Company Highlights

Last Price	43.13
Change Percentage	-0.16%
Open	42.91
Previous Close	43.2
Market Cap ( Millions)	574
Volume	63252
Year High	47
Year Low	36.07
M A 50	39.85
M A 200	41.81

FCF Yield	8.91%
Dividend Yield	2.90%
ROE	13.31%
Debt / Equity	0.00%
Net Debt / EBIDTA	-748.82%
Price To Book	2.32
Price Earnings Ratio	17.95
Price To FCF	11.23
Price To sales	2.8
EV / EBITDA	9.13

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Ballast Asset Management LP Has $3.92 Million Stock Position in Cass Information Systems, Inc $CASS

Dec -01

Source: defenseworld.net

Envestnet Asset Management Inc. Increases Holdings in Cass Information Systems, Inc $CASS

Nov -16

Source: defenseworld.net

Cass Information Systems (CASS) Beats Q3 Earnings and Revenue Estimates

Oct -23

Source: zacks.com

Cass Information Systems reports Third Quarter 2025 Results

Oct -23

Source: businesswire.com

Cass Information Systems Grows Earnings

Jul -21

Source: fool.com

Cass Information Systems (CASS) Q2 Earnings and Revenues Miss Estimates

Jul -17

Source: zacks.com

Cass Information Systems Reports Second Quarter 2025 Results

Jul -17

Source: businesswire.com

The Highest-Quality Dividend Contenders By Quality Scores

Jun -10

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.83%)

6. Segments

Information Services

Expected Growth: 6%

Cass Information Systems' 6% growth in Information Services is driven by increasing demand for digital payment solutions, expansion of its transportation information services, and growing adoption of its invoice management and business intelligence tools. Additionally, the company's strategic acquisitions and investments in technology have enhanced its service offerings, contributing to its growth momentum.

Banking

Expected Growth: 5%

Cass Information Systems, Inc.'s 5% growth in Banking is driven by increasing adoption of digital payment solutions, rising demand for cash management services, and expansion into new markets. Additionally, strategic partnerships, investments in technology, and a strong brand reputation contribute to the company's growth momentum.

Corporate, Eliminations and Other

Expected Growth: 4%

Cass Information Systems, Inc.'s 4% growth is driven by Corporate segment's increased adoption of digital payment solutions, Eliminations' reduction in intercompany transactions, and Other's expansion into new markets, such as transportation and logistics, leading to higher revenue from information services.

7. Detailed Products

Transportation Information Management

A comprehensive solution for managing and processing transportation-related data, including freight audit and payment services.

Freight Audit and Payment Services

A service that audits and pays freight invoices on behalf of clients, ensuring accuracy and efficiency.

Invoice Processing and Payment Services

A solution that automates the processing and payment of invoices, reducing manual errors and increasing efficiency.

Telecom Expense Management

A service that helps companies manage and optimize their telecom expenses, including invoice processing and payment.

Utility Expense Management

A solution that assists companies in managing and optimizing their utility expenses, including invoice processing and payment.

Spend Management Analytics

A platform that provides insights and analytics to help companies optimize their spend management processes.

8. Cass Information Systems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Cass Information Systems, Inc. is medium due to the presence of alternative payment processing solutions.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong relationships with its clients and the customized nature of its services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of payment processing services, but the company's scale and negotiating power mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the payment processing industry, including regulatory hurdles and the need for significant capital investment.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the payment processing industry, leading to a competitive market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	3.56%
Debt Cost	3.95%
Equity Weight	96.44%
Equity Cost	7.77%
WACC	7.63%
Leverage	3.69%

11. Quality Control: Cass Information Systems, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Cass Information Systems

A-Score: 5.8/10

Value: 5.1

Growth: 4.7

Quality: 6.8

Yield: 6.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

ARC Document Solutions

A-Score: 5.2/10

Value: 5.7

Growth: 3.2

Quality: 4.0

Yield: 7.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

Acacia Research

A-Score: 4.4/10

Value: 8.6

Growth: 5.4

Quality: 5.6

Yield: 0.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

BrightView

A-Score: 4.3/10

Value: 6.1

Growth: 5.6

Quality: 5.1

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

Civeo

A-Score: 4.0/10

Value: 6.8

Growth: 3.2

Quality: 2.3

Yield: 3.0

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

SPAR Group

A-Score: 3.0/10

Value: 9.4

Growth: 1.3

Quality: 3.7

Yield: 0.0

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.84%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.63%

Cass Information Systems, Inc. - US14808P1093

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CASS

1.c. Company Highlights

Better Quality

Higher Yield

Medium Volatility

Earnings Miss

Revenues Beats

Revenues Miss

Fairly Valued

Stable Momentum

Weak Momentum

Earnings Beats

Average Growth

Less Volatile

Expensive

Average Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.83%)

6. Segments

Information Services

Expected Growth: 6%

Banking

Expected Growth: 5%

Corporate, Eliminations and Other

Expected Growth: 4%

7. Detailed Products

Transportation Information Management

Freight Audit and Payment Services

Invoice Processing and Payment Services

Telecom Expense Management

Utility Expense Management

Spend Management Analytics

8. Cass Information Systems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Cass Information Systems, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.13$

Current Price

43.13$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA