Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Cass Information Systems, Inc. (CASS)

Company Dividend Discount ModelIndustry: Specialty Business ServicesSector: Industrials

Valuation Snapshot

Stable Growth$39.40 - $78.48$54.67
Multi-Stage$38.20 - $41.73$39.93
Blended Fair Value$47.30
Current Price$39.33
Upside20.26%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS1.56%5.84%1.211.181.141.141.151.120.970.790.740.71
YoY Growth--3.16%3.35%-0.03%-0.98%2.40%15.61%23.44%6.97%2.91%3.86%
Dividend Yield--2.81%2.48%2.63%3.08%2.48%3.19%2.06%1.59%1.47%1.80%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)31.52
(-) Cash Dividends Paid (M)16.58
(=) Cash Retained (M)14.95
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6.303.942.36
Cash Retained (M)14.9514.9514.95
(-) Cash Required (M)-6.30-3.94-2.36
(=) Excess Retained (M)8.6411.0112.58
(/) Shares Outstanding (M)13.5713.5713.57
(=) Excess Retained per Share0.640.810.93
LTM Dividend per Share1.221.221.22
(+) Excess Retained per Share0.640.810.93
(=) Adjusted Dividend1.862.032.15
WACC / Discount Rate8.73%8.73%8.73%
Growth Rate3.84%4.84%5.84%
Fair Value$39.40$54.67$78.48
Upside / Downside0.18%39.00%99.55%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)31.5233.0534.6436.3238.0739.9141.11
Payout Ratio52.58%60.07%67.55%75.03%82.52%90.00%92.50%
Projected Dividends (M)16.5819.8523.4027.2531.4235.9238.03

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.73%8.73%8.73%
Growth Rate3.84%4.84%5.84%
Year 1 PV (M)18.0818.2618.43
Year 2 PV (M)19.4219.7920.17
Year 3 PV (M)20.6021.2021.81
Year 4 PV (M)21.6322.4823.35
Year 5 PV (M)22.5323.6424.79
PV of Terminal Value (M)416.04436.46457.68
Equity Value (M)518.29541.82566.22
Shares Outstanding (M)13.5713.5713.57
Fair Value$38.20$39.93$41.73
Upside / Downside-2.88%1.52%6.10%

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