CATO CORP-CLASS A (CATO)

US1492051065 - Common Stock

5.77  -0.12 (-2.04%)

After market: 5.77 0 (0%)

Fundamental Rating

3

Overall CATO gets a fundamental rating of 3 out of 10. We evaluated CATO against 126 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.



3

1. Profitability

1.1 Basic Checks

In the past year CATO was profitable.
In the past year CATO had a positive cash flow from operations.
Of the past 5 years CATO 4 years were profitable.
Of the past 5 years CATO 4 years had a positive operating cash flow.

1.2 Ratios

CATO's Return On Assets of 0.18% is in line compared to the rest of the industry. CATO outperforms 50.79% of its industry peers.
CATO has a Return On Equity of 0.41%. This is comparable to the rest of the industry: CATO outperforms 56.35% of its industry peers.
Industry RankSector Rank
ROA 0.18%
ROE 0.41%
ROIC N/A
ROA(3y)-0.72%
ROA(5y)1.77%
ROE(3y)-1.56%
ROE(5y)3.12%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

CATO's Profit Margin of 0.10% is in line compared to the rest of the industry. CATO outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of CATO has declined.
CATO has a Gross Margin of 34.80%. This is comparable to the rest of the industry: CATO outperforms 46.03% of its industry peers.
CATO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM N/A
PM (TTM) 0.1%
GM 34.81%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-89.12%
PM growth 5Y-64.72%
GM growth 3Y-5%
GM growth 5Y-1.21%

6

2. Health

2.1 Basic Checks

CATO does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, CATO has less shares outstanding
The number of shares outstanding for CATO has been reduced compared to 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.

2.2 Solvency

An Altman-Z score of 2.54 indicates that CATO is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CATO (2.54) 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 2.54
ROIC/WACCN/A
WACC8.84%

2.3 Liquidity

CATO has a Current Ratio of 1.42. This is a normal value and indicates that CATO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CATO (1.42) is comparable to the rest of the industry.
A Quick Ratio of 0.88 indicates that CATO may have some problems paying its short term obligations.
The Quick ratio of CATO (0.88) is better than 64.29% of its industry peers.
Industry RankSector Rank
Current Ratio 1.42
Quick Ratio 0.88

0

3. Growth

3.1 Past

CATO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -84.08%.
The earnings per share for CATO have been decreasing by -63.77% on average. This is quite bad
The Revenue has decreased by -6.11% in the past year.
The Revenue has been decreasing by -2.23% on average over the past years.
EPS 1Y (TTM)-84.08%
EPS 3Y-88.78%
EPS 5Y-63.77%
EPS growth Q2Q-39.62%
Revenue 1Y (TTM)-6.11%
Revenue growth 3Y-2.74%
Revenue growth 5Y-2.23%
Revenue growth Q2Q-10.4%

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.

0

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 115.40, the valuation of CATO can be described as expensive.
CATO's Price/Earnings ratio is in line with the industry average.
CATO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.48.
Industry RankSector Rank
PE 115.4
Fwd PE N/A

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA -18.15

4.3 Compensation for Growth

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

5

5. Dividend

5.1 Amount

CATO has a Yearly Dividend Yield of 11.54%, which is a nice return.
CATO's Dividend Yield is rather good when compared to the industry average which is at 3.22. CATO pays more dividend than 99.21% of the companies in the same industry.
CATO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 11.54%

5.2 History

The dividend of CATO decreases each year by -12.23%.
CATO has paid a dividend for at least 10 years, which is a reliable track record.
CATO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-12.23%
Div Incr Years0
Div Non Decr Years3

5.3 Sustainability

1569.85% of the earnings are spent on dividend by CATO. This is not a sustainable payout ratio.
CATO's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP1569.85%
EPS Next 2YN/A
EPS Next 3YN/A

CATO CORP-CLASS A

NYSE:CATO (3/28/2024, 8:04:00 PM)

After market: 5.77 0 (0%)

5.77

-0.12 (-2.04%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap118.80M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 11.54%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 115.4
Fwd PE N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.18%
ROE 0.41%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) 0.1%
GM 34.81%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.86
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.42
Quick Ratio 0.88
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-84.08%
EPS 3Y-88.78%
EPS 5Y
EPS growth Q2Q
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.11%
Revenue growth 3Y-2.74%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y