Daily Stock Analysis: Cass Information Systems Inc

Cass Information Systems Inc, known by the ticker symbol CASS is a Small-cap Specialty Business Services firm, operating in the technology business sector. This is my first-ever report on CASS for this Viital portfolio, but CASS was reviewed for one of my previous 6 portfolios.

Cass Information Systems Inc (CASS) is a provider of payment and information processing services to large manufacturing, distribution and retail enterprises across the United States.

The company provides transportation invoice rating, payment processing, auditing, accounting, and transportation information. It is also a processor and payer of energy invoices, including electricity, gas, waste, and other facility-related expenses.

It operates in two segments: Information Services and Banking Services. The firm generates maximum revenue from the Information Services segment.

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.

Three key data points gauge any dividend equity or fund such as The Cass Information Systems Inc (CASS).

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

CASS Price

Cass’s price per share was $32.39 as of yesterday's market close. One year ago its price was $45.89. Therefore, Cass’s share price fell $13.50 or about 29% in the past year.

If Cass’s stock trades in the range of $28.00 to $37.00 this next year, its recent $32.39 share price might rise by $0.81 to reach $33.20 by June 14, 2023. My $0.81 upside estimate is jut below the average of annual price increases for CASS over the past 25 years.

CASS Dividends

Cass’s most recently declared quarterly dividend of $0.28 is payable tomorrow June 15, 2022 to shareholders on record as of June 2nd.

CASS initiated their first quarterly dividend  at $0.02 as of September 15, 1991. The Q dividend has increased generally annually to $0.28 first paid as of December 15, 2021. That resulting $1.12 annual payout is calculated to deliver a 3.46% annual yield per yesterday’s $32.39 share price.

CASS Returns

Adding the $1.12 CASS annual dividend to my estimated one-year price upside estimate of $0.81 shows a $1.93 potential gross gain, per share, to be reduced by any costs to trade CASS shares.

At yesterday's $32.39 closing price per share, a little under $1000 would buy 31 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.32 per share.

Subtract that maybe $0.32 brokerage cost from my estimated $1.93 gross gain estimate per share results in a net gain of $1.61 X 31 shares = $49.91 for a 4.9% net gain including a 3.46% forward looking dividend yield.

So it is that Cass Information Systems Inc shows a possible 4.9% net gain including a 4.46% forward-looking dividend yield.

Over the next year at this time our $1000 investment in Cass Information Systems Inc shares could generate $34.60 in cash dividends. Of course, a single share of CASS stock bought at yesterday's $32.39 price is $2.21 less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a decent time to pick up CASS shares based on their forward looking dividends for the year 2022. The forthcoming annual dividends from $1K invested are $2.21 greater than yesterday's single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Cass Information Systems Inc. Only time and money invested in this stock will determine its market value.


This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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