Is Pathward Financial, Inc. overvalued or undervalued?

As of 29 August 2025, the valuation grade for Pathward Financial, Inc. has moved from fair to attractive, indicating a more favorable assessment of its worth. The company appears to be undervalued, supported by a P/E ratio of 10, which is significantly lower than the industry average, and a PEG ratio of 1.06, suggesting reasonable growth expectations relative to its price. Additionally, the company boasts a robust ROE of 21.71% and an impressive dividend yield of 28.58%, which further enhances its attractiveness.
In comparison to its peers, Pathward Financial's P/E ratio of 9.78 is notably lower than Fulton Financial Corp.'s 13.49 and Community Bank System, Inc.'s 16.45, reinforcing the notion that it may be undervalued. Furthermore, the company has outperformed the S&P 500 over the long term, with a remarkable 3-year return of 135.01% compared to the index's 70.41%, indicating strong relative performance.