Cass Information Operating Margin vs. Price To Earning

CASS Stock  USD 43.90  0.18  0.41%   
Considering Cass Information's profitability and operating efficiency indicators, Cass Information Systems is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess Cass Information's ability to earn profits and add value for shareholders.

Cass Information Operating Profit Margin

0.43

At this time, Cass Information's Days Sales Outstanding is comparatively stable compared to the past year. Operating Cash Flow Sales Ratio is likely to gain to 0.18 in 2024, whereas EV To Sales is likely to drop 2.59 in 2024. At this time, Cass Information's Operating Income is comparatively stable compared to the past year. Change To Netincome is likely to gain to about 19.7 M in 2024, whereas Income Before Tax is likely to drop slightly above 26.1 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.470.4459
Notably Up
Pretty Stable
Net Profit Margin0.130.141
Significantly Down
Slightly volatile
Pretax Profit Margin0.180.1752
Fairly Up
Slightly volatile
Return On Assets0.01210.0121
Slightly Down
Slightly volatile
Return On Equity0.140.1308
Notably Up
Very volatile
For Cass Information profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cass Information to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cass Information Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cass Information's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cass Information Systems over time as well as its relative position and ranking within its peers.
  

Cass Information's Revenue Breakdown by Earning Segment

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Is Data Processing & Outsourced Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cass Information. If investors know Cass will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cass Information listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.61)
Dividend Share
1.2
Earnings Share
1.67
Revenue Per Share
16.286
Quarterly Revenue Growth
0.029
The market value of Cass Information Systems is measured differently than its book value, which is the value of Cass that is recorded on the company's balance sheet. Investors also form their own opinion of Cass Information's value that differs from its market value or its book value, called intrinsic value, which is Cass Information's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cass Information's market value can be influenced by many factors that don't directly affect Cass Information's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cass Information's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cass Information is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cass Information's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Cass Information Systems Price To Earning vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Cass Information's current stock value. Our valuation model uses many indicators to compare Cass Information value to that of its competitors to determine the firm's financial worth.
Cass Information Systems is rated second in operating margin category among its peers. It is rated below average in price to earning category among its peers reporting about  111.61  of Price To Earning per Operating Margin. At this time, Cass Information's Operating Profit Margin is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Cass Information by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Cass Price To Earning vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Cass Information

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.16 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Cass Information

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
17.69 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Cass Price To Earning Comparison

Cass Information is currently under evaluation in price to earning category among its peers.

Cass Information Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Cass Information, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cass Information will eventually generate negative long term returns. The profitability progress is the general direction of Cass Information's change in net profit over the period of time. It can combine multiple indicators of Cass Information, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-47.5 M-45.1 M
Operating Income88.3 M92.7 M
Income Before Tax37.4 M26.1 M
Total Other Income Expense Net-50.9 M-48.4 M
Net Income30.1 M19.6 M
Income Tax Expense7.3 M6.5 M
Net Income Applicable To Common Shares40.1 M21.7 M
Net Income From Continuing Ops30.9 M29.3 M
Net Interest Income66.8 M52.9 M
Interest Income80.5 M56.9 M
Change To Netincome18.7 M19.7 M
Net Income Per Share 2.18  2.29 
Income Quality 1.23  1.08 
Net Income Per E B T 0.80  0.58 

Cass Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Cass Information. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cass Information position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cass Information's important profitability drivers and their relationship over time.

Use Cass Information in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cass Information position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cass Information will appreciate offsetting losses from the drop in the long position's value.

Cass Information Pair Trading

Cass Information Systems Pair Trading Analysis

The ability to find closely correlated positions to Cass Information could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cass Information when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cass Information - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cass Information Systems to buy it.
The correlation of Cass Information is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cass Information moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cass Information Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cass Information can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Cass Information position

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Pharmaceutical Products
Pharmaceutical Products Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Pharmaceutical Products theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Pharmaceutical Products Theme or any other thematic opportunities.
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Additional Tools for Cass Stock Analysis

When running Cass Information's price analysis, check to measure Cass Information's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cass Information is operating at the current time. Most of Cass Information's value examination focuses on studying past and present price action to predict the probability of Cass Information's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cass Information's price. Additionally, you may evaluate how the addition of Cass Information to your portfolios can decrease your overall portfolio volatility.