Is Pathward Financial, Inc. overvalued or undervalued?

As of 17 June 2025, the valuation grade for Pathward Financial, Inc. moved from fair to attractive, indicating a positive shift in its market perception. Based on the analysis, the company appears to be undervalued. Key ratios include a P/E ratio of 10, a Price to Book Value of 2.23, and a Dividend Yield of 28.58%, which suggests strong returns relative to its price.
In comparison to its peers, Pathward's P/E ratio of 10 is lower than the industry average, which is reflected in the peer comparison where another company shows a P/E of approximately 9.68. Additionally, Pathward's ROCE of 26.31% and ROE of 21.71% highlight its effective capital utilization and profitability. The company's stock has outperformed the S&P 500 over the past year, with a return of 39.94% compared to the index's 10.26%, reinforcing the notion that it is undervalued in the current market.