CATO Fundamental Analysis - CATO CORP-CLASS A

Name: CATO CORP-CLASS A (CATO) Stock
Brand: CATO CORP-CLASS A
Rating: 2 (3 reviews)

Fundamental Rating

We assign a fundamental rating of 2 out of 10 to CATO. CATO was compared to 122 industry peers in the Specialty Retail industry. While CATO seems to be doing ok healthwise, there are quite some concerns on its profitability. CATO does not seem to be growing, but still is valued expensively.

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1. Profitability

1.1 Basic Checks

In the past year CATO has reported negative net income.

In the past year CATO has reported a negative cash flow from operations.

The reported net income has been mixed in the past 5 years: CATO reported negative net income in multiple years.

In multiple years CATO reported negative operating cash flow during the last 5 years.

1.2 Ratios

The Return On Assets of CATO (-4.51%) is worse than 68.03% of its industry peers.

The Return On Equity of CATO (-11.44%) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
ROA	-4.51%
ROE	-11.44%
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

1.3 Margins

CATO's Gross Margin of 33.07% is in line compared to the rest of the industry. CATO outperforms 40.16% of its industry peers.

In the last couple of years the Gross Margin of CATO has declined.

The Profit Margin and Operating Margin are not available for CATO so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	33.07%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CATO does not have a ROIC to compare to the WACC, probably because it is not profitable.

The number of shares outstanding for CATO has been reduced compared to 1 year ago.

The number of shares outstanding for CATO has been reduced compared to 5 years ago.

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.

2.2 Solvency

CATO has an Altman-Z score of 1.72. This is a bad value and indicates that CATO is not financially healthy and even has some risk of bankruptcy.

The Altman-Z score of CATO (1.72) 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 Rank	Sector Rank
Debt/Equity	0
Debt/FCF	N/A
Altman-Z	1.72

ROIC/WACCN/A

WACC9.19%

2.3 Liquidity

CATO has a Current Ratio of 1.29. This is a normal value and indicates that CATO is financially healthy and should not expect problems in meeting its short term obligations.

CATO has a Current ratio (1.29) which is in line with its industry peers.

A Quick Ratio of 0.73 indicates that CATO may have some problems paying its short term obligations.

CATO has a better Quick ratio (0.73) than 63.93% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.29
Quick Ratio	0.73

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for CATO have decreased strongly by -198.71% in the last year.

Looking at the last year, CATO shows a very negative growth in Revenue. The Revenue has decreased by -23.97% in the last year.

The Revenue has been decreasing by -4.67% on average over the past years.

EPS 1Y (TTM)-198.71%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-37.63%

Revenue 1Y (TTM)-23.97%

Revenue growth 3Y-5.47%

Revenue growth 5Y-4.67%

Sales Q2Q%-48.95%

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.

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4. Valuation

4.1 Price/Earnings Ratio

CATO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

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. Dividend

5.1 Amount

With a Yearly Dividend Yield of 10.10%, CATO is a good candidate for dividend investing.

CATO's Dividend Yield is rather good when compared to the industry average which is at 5.60. CATO pays more dividend than 98.36% of the companies in the same industry.

CATO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.

		Industry Rank	Sector Rank
Dividend Yield	10.1%

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

5.3 Sustainability

The earnings of CATO are negative and hence is the payout ratio. CATO will probably not be able to sustain this dividend level.

DP-17.6%

EPS Next 2YN/A

EPS Next 3YN/A

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CATO CORP-CLASS A

NYSE:CATO (11/21/2025, 8:15:34 PM)

3.25

-0.1 (-2.99%)

Chartmill FA Rating

GICS SectorConsumer Discretionary

GICS IndustryGroupConsumer Discretionary Distribution & Retail

GICS IndustrySpecialty Retail

Earnings (Last)11-19 2025-11-19

Earnings (Next)03-18 2026-03-18

Inst Owners34.32%

Inst Owner Change-2.53%

Ins Owners18.87%

Ins Owner Change0.56%

Market Cap64.12M

Revenue(TTM)650.83M

Net Income(TTM)-19.70M

Analysts43.33

Price TargetN/A

Short Float %2.45%

Short Ratio5.76

Dividend

		Industry Rank	Sector Rank
Dividend Yield	10.1%

Yearly Dividend0.52

Dividend Growth(5Y)-17.24%

DP-17.6%

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 Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S	0.1
P/FCF	N/A
P/OCF	N/A
P/B	0.37
P/tB	0.37
EV/EBITDA	N/A

EPS(TTM)-1.02

EYN/A

EPS(NY)N/A

Fwd EYN/A

FCF(TTM)-0.93

FCFYN/A

OCF(TTM)-0.66

OCFYN/A

SpS32.99

BVpS8.73

TBVpS8.73

PEG (NY)N/A

PEG (5Y)N/A

Graham NumberN/A

Profitability

		Industry Rank	Sector Rank
ROA	-4.51%
ROE	-11.44%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	N/A
GM	33.07%
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

ROICexgc growth 3YN/A

ROICexgc 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 Turnover1.49

Health

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	N/A
Debt/EBITDA	N/A
Cap/Depr	51.58%
Cap/Sales	0.84%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	1.29
Quick Ratio	0.73
Altman-Z	1.72

F-Score3

WACC9.19%

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)-198.71%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-37.63%

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)-23.97%

Revenue growth 3Y-5.47%

Revenue growth 5Y-4.67%

Sales Q2Q%-48.95%

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y-62.62%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y-4147.58%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-172%

OCF growth 3YN/A

OCF growth 5YN/A

CATO CORP-CLASS A / CATO FAQ

Can you provide the ChartMill fundamental rating for CATO CORP-CLASS A?

ChartMill assigns a fundamental rating of 2 / 10 to CATO.

Can you provide the valuation status for CATO CORP-CLASS A?

ChartMill assigns a valuation rating of 0 / 10 to CATO CORP-CLASS A (CATO). This can be considered as Overvalued.

What is the profitability of CATO stock?

CATO CORP-CLASS A (CATO) has a profitability rating of 1 / 10.

Is the dividend of CATO CORP-CLASS A sustainable?

The dividend rating of CATO CORP-CLASS A (CATO) is 5 / 10 and the dividend payout ratio is -17.6%.

CATO CORP-CLASS A (CATO) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens

CATO CORP-CLASS A / CATO FAQ

Can you provide the ChartMill fundamental rating for CATO CORP-CLASS A?

Can you provide the valuation status for CATO CORP-CLASS A?

What is the profitability of CATO stock?

Is the dividend of CATO CORP-CLASS A sustainable?