Simple Concepts Research Group

Cheap Stock to Watch: Cass Info. Sys (CASS)

by | Sep 10, 2021 | Stock Picks

Stock rating for Cass Info. Systems (CASS) and stock price target for 2021. Also, a look at recent financial data and key multiples for this bargain stock.

Cass Info Systems (CASS) Company Overview & Stock Price Forecast

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CASS Stock Rating

Stock Price Target: $59.31

Quick Points

  • Net income increased 9% to $14.1 million, compared to $13.0 million in 2020 for Q2 2021
  • Revenue increased to $75.5 million, 5% higher than the $72.1 million in 2020
  • Consistent cash dividend since 1934
  • Buyback suspension lifted (as of Q2 2021, 346K of 500K shares remain available for repurchase)

Earnings Yield

The current earnings yield for CASS is 4.21%, in comparison to 2.84% for the S&P 500 and 1.33% for the 10-year treasury bond. The median earnings yield for the industry in which CASS operates is 3.01%.

CLICK HERE to view our Current Portfolio return for CASS.

Stock Price Target: $59.31

Recent Financial Results

  • Q2 2021 revenue and net income increased 13% and 29%, respectively
  • Significant cash and cash equivalents
  • Net income increased 9% to $14.1 million
  • Revenue increase of to $75.5 million (5% higher than $72.1 million in 2020)
  • EBITDA reported of $42.4 million

Company Overview

Cass Information Systems provides payment and information processing services to large manufacturing, distribution and retail businesses in the US, the Netherlands, Basingstoke, United Kingdom, and Singapore. The company’s services include: freight invoice rating, payment processing, auditing, and generating accounting and transportation information. Cass also processes and pays energy invoices, like electricity and gas, as well as other utilities.

The solutions provided by the company include a B2B payment platform and an on-line platform to for generosity services to support faith-based and non-profit organizations.

The company has distributed over $60 billion annually on behalf of clients and is supported by Cass Commercial Bank (a wholly owned subsidiary). The company was founded in 1906 and is headquartered in St. Louis, Mo. The current CEO is Eric Brunngraber.

Cass is part of the Russell 2000.