Cass Information Systems, Inc EBITDA Margin dropped on 34.0 pp from 34.0% to in 2020
01/28/2021 • About Cass Information Systems, Inc (
$CASS) • By InTwits
Cass Information Systems, Inc reported FY2020 financial results today. Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Cass Information Systems, Inc's Revenue dropped on 10.9%. Annual revenue decline showed slowdown in FY20Q4 - revenue decreased on 7.5%. During the last 5 years Revenue growth topped in FY2018 at 10.6% and was decelerating since that time.
Net Income margin decreased slightly on 1.3 pp from 18.7% to 17.4% in FY2020.
Management team
The company's CEO Eric H Brunngraber has spent 12 years with the company. Cass Information Systems, Inc's CFO P Stephen Appelbaum "Steve" has spent 14 years with the company.
Financial and operational results
Cass Information Systems, Inc ($CASS) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 126.1 | 137.5 | 152.0 | 162.7 | 145.0 | -10.9% |
| EBITDA | 43.5 | 48.4 | 51.3 | 55.3 | | |
| Net Income | 24.3 | 25.0 | 30.3 | 30.4 | 25.2 | -17.2% |
Balance Sheet
|
|---|
| Cash | 11.8 | 17.4 | 15.0 | 18.1 | | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 19.7 | | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 4.9 | | |
Cash flow
|
|---|
| Capex | 4.7 | 4.1 | 4.4 | 5.6 | | |
Ratios
|
|---|
| Revenue growth | 3.3% | 9.1% | 10.6% | 7.0% | -10.9% | |
| EBITDA growth | 3.6% | 11.3% | 6.0% | 7.7% | | |
|
|---|
| EBITDA Margin | 34.5% | 35.2% | 33.8% | 34.0% | |
| Net Income Margin | 19.3% | 18.2% | 19.9% | 18.7% | 17.4% | -1.3% |
| CAPEX, % of revenue | 3.7% | 3.0% | 2.9% | 3.4% | | |
|
|---|
| ROIC | 15.8% | 16.1% | 15.7% | 15.0% | | |
| ROE | 11.7% | 11.6% | 13.3% | 12.8% | | |
| Net Debt/EBITDA | -0.3x | -0.4x | -0.3x | 0.1x | |
Cass Information Systems, Inc ($CASS) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 39 | 35 | 36 | 37 | | -1.2% | -14.5% | -13.6% | -7.5% |
| Net Income | 8 | 5 | 6 | 6 | | -7.6% | -29.2% | -29.4% | 0.6% |
Balance Sheet
|
|---|
Ratios
|
|---|
| Net Income Margin | 19.1% | 15.6% | 16.0% | 17.3% | | -1.3% | -3.3% | -3.6% | 1.4% |
Peers in Data Processing & Outsourced Services
Below you can find Cass Information Systems, Inc benchmarking vs. other companies in Data Processing & Outsourced Services industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Square, Inc. ($SQ) | - | 29.6% | 49.0% | 42.9% | 101.5% |
| Global Payments Inc. ($GPN) | - | 37.2% | -15.3% | 45.9% | 51.1% |
| Fiserv, Inc. ($FISV) | - | 3.5% | 2.2% | 74.9% | 45.8% |
| NIC Inc. ($EGOV) | - | 5.8% | 2.5% | 2.7% | 30.0% |
| StoneCo Ltd ($STNE) | - | 74.3% | 106.0% | 63.1% | 28.9% |
| |
|---|
| Median (39 companies) | 6.7% | 11.8% | 7.4% | 11.5% | -2.7% |
|---|
| Cass Information Systems, Inc ($CASS) | - | 9.1% | 10.6% | 7.0% | -10.9% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Verra Mobility Corp ($VRRM) | - | 97.4% | 97.5% | 95.7% | 91.5% |
| EVO Payments, Inc. ($EVOP) | - | - | - | 80.2% | 80.8% |
| StoneCo Ltd ($STNE) | 69.7% | 70.8% | 79.5% | 83.4% | 76.8% |
| WEX Inc. ($WEX) | 54.7% | 58.8% | 63.3% | 61.7% | 56.8% |
| Sabre Corporation ($SABR) | 32.2% | 30.1% | 27.8% | 56.6% | 56.6% |
| |
|---|
| Median (32 companies) | 39.3% | 39.3% | 41.0% | 41.0% | 36.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Visa Inc. ($V) | 55.6% | 69.2% | 65.8% | 68.1% | 68.5% |
| Mastercard Incorporated ($MA) | 56.9% | 56.5% | 51.8% | 60.9% | 56.6% |
| FleetCor Technologies, Inc. ($FLT) | 52.0% | 50.8% | 55.9% | 57.6% | 52.2% |
| StoneCo Ltd ($STNE) | 31.4% | 26.0% | 53.0% | 62.4% | 52.1% |
| Black Knight, Inc. ($BKI) | 43.0% | 44.6% | 43.3% | 46.0% | 44.9% |
| |
|---|
| Median (39 companies) | 21.2% | 20.6% | 19.2% | 21.7% | 18.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| PagSeguro Digital Ltd. ($PAGS) | 6.4% | 4.3% | 1.4% | 5.8% | 22.3% |
| StoneCo Ltd ($STNE) | 7.2% | 18.4% | 8.9% | 12.9% | 11.2% |
| Cardtronics plc ($CATM) | 9.9% | 9.6% | 8.0% | 9.3% | 8.3% |
| Verra Mobility Corp ($VRRM) | - | 11.5% | 7.2% | 6.6% | 6.2% |
| Fiserv, Inc. ($FISV) | 5.3% | 5.0% | 6.2% | 7.1% | 6.1% |
| |
|---|
| Median (39 companies) | 3.2% | 2.9% | 3.2% | 3.0% | 3.1% |
|---|
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mastercard Incorporated ($MA) | 57.5% | 60.6% | 64.7% | 72.7% | 47.6% |
| International Money Express, Inc. ($IMXI) | -1.3% | -1.4% | 12.1% | 36.0% | 31.4% |
| NIC Inc. ($EGOV) | 63.1% | 52.1% | 39.3% | 26.5% | 30.8% |
| Visa Inc. ($V) | 18.1% | 21.9% | 23.0% | 27.2% | 23.2% |
| Western Union Company (The) ($WU) | 10.7% | 11.9% | 27.8% | 21.5% | 22.1% |
| |
|---|
| Median (39 companies) | 11.1% | 10.6% | 10.2% | 8.2% | 5.7% |
|---|
| Cass Information Systems, Inc ($CASS) | 15.8% | 16.1% | 15.7% | 15.0% | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| WEX Inc. ($WEX) | 6.7x | 4.4x | 3.1x | 3.4x | 12.1x |
| Exela Technologies Inc ($XELAU) | 8.1x | - | 9.7x | - | 10.7x |
| Alliance Data Systems Corporation ($ADS) | 10.7x | 10.1x | 9.0x | 11.7x | 9.2x |
| Verra Mobility Corp ($VRRM) | - | 10.7x | 6.9x | 3.5x | 4.7x |
| GreenSky, Inc. ($GSKY) | -1.5x | -1.5x | 0.5x | 1.5x | 4.6x |
| |
|---|
| Median (36 companies) | 1.6x | 2.3x | 2.2x | 2.3x | 2.0x |
|---|
