Cadence Bank (CADE)
Valuation Overview•Is Cadence Bank Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Moderate quality score of 62/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
CADE demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($1.7B) and minimal debt risk.
The company maintains stable top-line performance paired with highly explosive earnings growth (21.6% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 23.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $748.3M | +32.4% | — | — | +15.0% | |
| EBITDA | $165.0M | — | +29.9% | — | — | |
| Net Income | $129.8M | -3.4% | +39.0% | — | +16.2% | |
| EPS (Diluted) | $0.67 | -5.1% | +21.6% | +3.8% | +8.6% | |
| Free Cash Flow | $173.5M | +66.9% | -11.0% | +33.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 60.3% | 66.9% | 72.8% | 83.1% |
| Operating Margin | 23.8% | 17.9% | 19.8% | 23.6% |
| Net Margin | 18.7% | 22.4% | 20.9% | 20.5% |
| FCF Margin | 17.9% | 30.6% | 40.7% | 28.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q1'26Latest | $0.79 | $0.85 | +7.6% | ||
| Q4'25 | $0.70 | $0.81 | +15.2% | ||
| Q3'25 | $0.69 | $0.73 | +5.8% | ||
| Q2'25 | $0.64 | $0.71 | +10.9% | ||
| Q1'25 | $0.68 | $0.70 | +2.9% | ||
| Q4'24 | $0.64 | $0.73 | +14.1% | ||
| Q3'24 | $0.61 | $0.69 | +13.1% | ||
| Q2'24 | $0.55 | $0.62 | +12.7% |
Total return is +42.0% (1Y), outperforming the benchmark by +17.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -1.8% | -11.1% | — |
| 1Y | +42.0% | +17.0% | +3.0% |
| 3YCAGR | +29.6% | +10.1% | +14.1% |
| 5YCAGR | +11.1% | -2.1% | +16.9% |
| 10YCAGR | +8.5% | -5.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Cadence Bank (CADE) valuation, health, and returns.
Cadence Bank is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. overvalued (implying -45.0% downside from DCF intrinsic value of $23.16)
Cadence Bank has multiple valuation anchors: DCF Intrinsic Value: $23.16 | Peer Relative Fair Value: $36.27 | Wall Street Analyst Target: $39.75 (implying -5.6% upside). A convergence of these signals offers higher conviction.
Cadence Bank displays good financial health with a composite quality score of 62/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 6.7%.
Cadence Bank pays a 2.3% dividend yield, covered by a 35% payout ratio with 13 years of growth, supplemented by a 0.5% buyback yield.
Cadence Bank's current growth trajectory is Accelerating. The company achieved +32.4% 1Y revenue growth and -5.1% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 20 analysts, beating EPS expectations in 75% of recent quarters with a 8-quarter streak. The consensus price target represents a -5.6% change from current levels.
Investment risks for Cadence Bank include: -11.0% 1-year max drawdown, high beta (1.33x market volatility). Volatility risk is characterized by a beta of 1.33x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.