With an assets to liabilities ratio of more than 1x, CASH’s balance sheet looks stable. In Q1, the total amount of assets was equal to $7264 million, with total liabilities of $6451 million. CASH shows $1586 million in cash and cash equivalents. In my opinion, the company has a good amount of cash to conduct additional R&D and increase its marketing efforts. CASH has total investments worth $2134 million. I think that money managers need to do their own research about the company’s investments. The real value of the investments may be more huge than its book value.
CASH’s short term debt is less significant than the company’s cash and cash equivalents. In my opinion, Meta Financial Group Inc may not have to worry about any liquidity risk. In addition, the price to book value is below 1. 5x, which means that CASH is undervalued.
CASH’s debt to equity ratio is below 2x. To sum up, the debt level appears to be under control. Note that Meta Financial Group Inc reports cash and cash equivalents of $1586 million, and net debt of $-1489 million.
Valuation and Risks
Meta Financial Group Inc has a market capitalization of $1519 million. I assume sales of $443 million. So, CASH trades at 2x forward sales. In my view, it can be justified due to the fact that the market expects Meta Financial Group Inc to report decent margins.
Institutional shareholders Brookside Equity Partners LLC, Capital Asset Advisory Services LLC, and UBS ASSET MANAGEMENT AMERICAS are Meta Financial Group Inc investors.
The following CASH’s insiders acquired or sold equity recently.CASH’s traders will most likely study this information:
+In 2021-03-23, Tang Kia S. sold equity of CASH.
+In 2021-03-15, director Hajek Douglas J. sold stock of CASH.
+In 2021-03-12, officer: EVP Chief Legal&Comp, Corp Sec Sharett Anthony M. sold equity of CASH.
Meta Financial Group, Inc. operates as the holding company for MetaBank that offers various banking products and services in the United States. The company accepts various deposit products, including statement savings accounts, money market savings accounts, negotiable order of withdrawal accounts, and checking accounts; and deposits related to prepaid cards, which primarily comprise checking accounts and certificate accounts.
If you see an error, please contact the editor. We don’t own CASH’s shares, and this is our opinion. We do not offer a recommendation to buy or sell any stock.