Pathward Financial: Credit Concerns Mount Given Renewable Energy Exposure

Pathward Financial: Credit Concerns Mount Given Renewable Energy Exposure Seeking Profits 5.59K Followers Follow 5 Share Save Play ( 10min ) Comments Summary Pathward Financial remains a "Sell" due to worsening credit quality, particularly in structured credit and renewable energy exposures. CASH's Q3 earnings missed expectations significantly, with elevated nonperforming loans now at 5.3% and reserves still viewed as insufficient. Rapid loan growth, especially in riskier verticals, raises concerns about loose underwriting and the potential for further reserve builds. I see 15%-20% downside to $70-$75, with earnings likely constrained through 2027 and buybacks muted until credit quality improves. Getty Images Shares of Pathward Financial ( CASH ) have been a moderate performer over the past year, gaining about 10%. While the company has been aggressively buying back stock and expanding its loan book, upside has been limited by rising nonperforming loans (“NPLs”). In particular, its exposure to This article was written by Seeking Profits 5.59K Followers Follow Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.