Is Cadence Bank (CADE) a Warren Buffett Stock?
Partial Buffett fit - meets 7/9 key criteria, but with reservations.
7/9 criteria passed
Capped from C to D. ROIC under 8% on both TTM and 5y average - business doesn't earn enough on capital invested; ROIC negative on the most recent TTM - currently losing money on capital deployed regardless of historical averages; Share count growing by more than 3%/year over 5y - dilutes future per-share value What are deal-breaker caps?
Warren Buffett's Criteria, Applied to CADE
ROIC ≥ 15%
Gross margin ≥ 40%
Owner earnings yield ≥ 5%
5y profitable
Net Debt / EBITDA ≤ 3
Revenue CAGR ≥ 8%
EPS CAGR ≥ 8%
FCF / Net income ≥ 0.8
Debt / Equity ≤ 1
How CADE Scores on Other Strategies
Live Financial Snapshot
Market cap
$7.85B
P/E (TTM)
14.7x
ROIC (TTM)
-1.92%
Gross margin
60.57%
Other Warren Buffett fit reports
Frequently Asked Questions
What is CADE's Warren Buffett fit score?
Does Warren Buffett actually own CADE?
How often is this score updated?
Key terms in this analysis
Educational tool, not investment advice. Scores are computed from publicly-available financial data against published investing-strategy criteria. We do not claim that Warren Buffett personally owns or recommends CADE.