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CATO CORP-CLASS A (CATO) Stock Fundamental Analysis

NYSE:CATO - New York Stock Exchange, Inc. - US1492051065 - Common Stock - Currency: USD

2.82  +0.01 (+0.36%)

Fundamental Rating

2

Taking everything into account, CATO scores 2 out of 10 in our fundamental rating. CATO was compared to 122 industry peers in the Specialty Retail industry. CATO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CATO is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

CATO had negative earnings in the past year.
In the past year CATO has reported a negative cash flow from operations.
In multiple years CATO reported negative net income over the last 5 years.
In multiple years CATO reported negative operating cash flow during the last 5 years.
CATO Yearly Net Income VS EBIT VS OCF VS FCFCATO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M

1.2 Ratios

CATO has a worse Return On Assets (-3.51%) than 65.57% of its industry peers.
CATO has a Return On Equity of -9.39%. This is comparable to the rest of the industry: CATO outperforms 42.62% of its industry peers.
Industry RankSector Rank
ROA -3.51%
ROE -9.39%
ROIC N/A
ROA(3y)-2.92%
ROA(5y)-2.18%
ROE(3y)-7.73%
ROE(5y)-5.58%
ROIC(3y)N/A
ROIC(5y)N/A
CATO Yearly ROA, ROE, ROICCATO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10

1.3 Margins

Looking at the Gross Margin, with a value of 33.45%, CATO is in line with its industry, outperforming 42.62% of the companies in the same industry.
CATO's Gross Margin has declined in the last couple of years.
CATO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 33.45%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.21%
GM growth 5Y-3.05%
CATO Yearly Profit, Operating, Gross MarginsCATO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30 40

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6

2. Health

2.1 Basic Checks

CATO does not have a ROIC to compare to the WACC, probably because it is not profitable.
CATO has less shares outstanding than it did 1 year ago.
CATO has less shares outstanding than it did 5 years ago.
CATO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
CATO Yearly Shares OutstandingCATO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M 25M
CATO Yearly Total Debt VS Total AssetsCATO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

2.2 Solvency

CATO has an Altman-Z score of 2.02. This is not the best score and indicates that CATO is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CATO (2.02) is comparable to the rest of the industry.
There is no outstanding debt for CATO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 2.02
ROIC/WACCN/A
WACC9.62%
CATO Yearly LT Debt VS Equity VS FCFCATO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 1.24 indicates that CATO should not have too much problems paying its short term obligations.
CATO has a Current ratio (1.24) which is in line with its industry peers.
CATO has a Quick Ratio of 1.24. This is a bad value and indicates that CATO is not financially healthy enough and could expect problems in meeting its short term obligations.
CATO has a Quick ratio of 0.64. This is comparable to the rest of the industry: CATO outperforms 59.84% of its industry peers.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 0.64
CATO Yearly Current Assets VS Current LiabilitesCATO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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0

3. Growth

3.1 Past

The earnings per share for CATO have decreased strongly by -29.29% in the last year.
The Revenue has decreased by -7.36% in the past year.
Measured over the past years, CATO shows a decrease in Revenue. The Revenue has been decreasing by -4.67% on average per year.
EPS 1Y (TTM)-29.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-68.97%
Revenue 1Y (TTM)-7.36%
Revenue growth 3Y-5.47%
Revenue growth 5Y-4.67%
Sales Q2Q%-3.87%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
CATO Yearly Revenue VS EstimatesCATO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
CATO Yearly EPS VS EstimatesCATO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 0.5 1 1.5 2

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0

4. Valuation

4.1 Price/Earnings Ratio

CATO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
CATO Price Earnings VS Forward Price EarningsCATO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0 0 0 0 0 0 0

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
CATO Per share dataCATO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

CATO has a Yearly Dividend Yield of 22.37%, which is a nice return.
Compared to an average industry Dividend Yield of 4.90, CATO pays a better dividend. On top of this CATO pays more dividend than 99.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, CATO pays a better dividend.
Industry RankSector Rank
Dividend Yield 22.37%

5.2 History

The dividend of CATO decreases each year by -17.24%.
CATO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-17.24%
Div Incr Years0
Div Non Decr Years0
CATO Yearly Dividends per shareCATO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

CATO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-45.15%
EPS Next 2YN/A
EPS Next 3YN/A
CATO Yearly Income VS Free CF VS DividendCATO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M -20M 40M -40M 60M 80M

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CATO CORP-CLASS A

NYSE:CATO (7/18/2025, 8:04:00 PM)

2.82

+0.01 (+0.36%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)05-22 2025-05-22/bmo
Earnings (Next)08-20 2025-08-20
Inst Owners36.83%
Inst Owner Change0%
Ins Owners18.86%
Ins Owner Change0.46%
Market Cap55.67M
Analysts43.33
Price TargetN/A
Short Float %3.19%
Short Ratio11.14
Dividend
Industry RankSector Rank
Dividend Yield 22.37%
Yearly Dividend0.52
Dividend Growth(5Y)-17.24%
DP-45.15%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.07
P/FCF N/A
P/OCF N/A
P/B 0.34
P/tB 0.34
EV/EBITDA N/A
EPS(TTM)-0.81
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-1.38
FCFYN/A
OCF(TTM)-1.09
OCFYN/A
SpS41.54
BVpS8.35
TBVpS8.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.51%
ROE -9.39%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 33.45%
FCFM N/A
ROA(3y)-2.92%
ROA(5y)-2.18%
ROE(3y)-7.73%
ROE(5y)-5.58%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.21%
GM growth 5Y-3.05%
F-Score3
Asset Turnover1.86
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 54.44%
Cap/Sales 0.69%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.24
Quick Ratio 0.64
Altman-Z 2.02
F-Score3
WACC9.62%
ROIC/WACCN/A
Cap/Depr(3y)127.51%
Cap/Depr(5y)102.2%
Cap/Sales(3y)1.85%
Cap/Sales(5y)1.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-29.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-68.97%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.36%
Revenue growth 3Y-5.47%
Revenue growth 5Y-4.67%
Sales Q2Q%-3.87%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-90.17%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1049.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-189.82%
OCF growth 3YN/A
OCF growth 5YN/A