This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cass to Benefit From Shipping Slump

Cass has posted consistent growth in revenue and EPS over the past two years. Third-quarter revenue climbed 1.3% to $25.1 million from a year earlier, while net income advanced 11.8% to $5.23 million. Gross margins widened to 34.22% from 31.08%, and operating margins climbed to 29.8% from 27.89%.

A debt-to-equity ratio of 0.03 indicates miniscule debt. Also, Cass has $100 million in cash reserves and about $850 million in total liabilities. The company operates within the IT services industry, which includes more well-known names such as Teletech Holdings (TTEC - Get Report), Wright Express (WXS) and Euronet Worldwide (EEFT - Get Report), whose stocks have declined significantly this year. Still, Cass is trading at an industry discount based on price to earnings, price to cash flow and price to book. The shares, which have risen 2% this year, are expensive based on price to sales.

Cass has a beta of 0.25 and a dividend yield of 1.41%. The company faces risks inherent to its size, as it only has 9 million shares outstanding. Some 19,207 shares are traded on an average day, indicating weak stock-market liquidity.

Cass is a stock for buy-and-hold investors. Value and fundamentals are no guarantee of price appreciation in a down market. Also, small-market capitalization and thin trading volume make Cass a comparatively illiquid security. If the company misses earnings guidance or issues cautious warnings, rapid depreciation is likely. Consider macroeconomic and idiosyncratic risk before investing in Cass.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CASS $48.93 0.00%
EEFT $74.89 0.00%
TTEC $27.11 0.00%
AAPL $110.38 0.00%
FB $92.07 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs