CATO Fundamental Analysis - CATO CORP-CLASS A

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. CATO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.

The reported operating cash flow has been mixed in the past 5 years: CATO reported negative operating cash flow in multiple years.

1.2 Ratios

Looking at the Return On Assets, with a value of -2.13%, CATO is doing worse than 62.30% of the companies in the same industry.

With a Return On Equity value of -5.73%, CATO perfoms like the industry average, outperforming 46.72% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-2.13%
ROE	-5.73%
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 has a Gross Margin of 33.77%. This is comparable to the rest of the industry: CATO outperforms 41.80% of its industry peers.

CATO's Gross Margin has declined in the last couple of years.

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	33.77%

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.

CATO has less shares outstanding than it did 1 year ago.

Compared to 5 years ago, CATO has less shares outstanding

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 1.75. 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 (1.75) is comparable to the rest of the industry.

CATO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	N/A
Altman-Z	1.75

ROIC/WACCN/A

WACC9.74%

2.3 Liquidity

CATO has a Current Ratio of 1.38. 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 of 1.38. This is comparable to the rest of the industry: CATO outperforms 54.10% of its industry peers.

CATO has a Quick Ratio of 1.38. 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's Quick ratio of 0.76 is fine compared to the rest of the industry. CATO outperforms 64.75% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.38
Quick Ratio	0.76

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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

CATO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.14%, which is quite impressive.

Looking at the last year, CATO shows a very negative growth in Revenue. The Revenue has decreased by -21.78% in the last year.

CATO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.67% yearly.

EPS 1Y (TTM)40.14%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%65.15%

Revenue 1Y (TTM)-21.78%

Revenue growth 3Y-5.47%

Revenue growth 5Y-4.67%

Sales Q2Q%6.32%

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

CATO has a Yearly Dividend Yield of 10.10%, which is a nice return.

CATO's Dividend Yield is rather good when compared to the industry average which is at 2.12. CATO pays more dividend than 97.54% of the companies in the same industry.

CATO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.90.

		Industry Rank	Sector Rank
Dividend Yield	10.1%

5.2 History

The dividend of CATO decreases each year by -17.24%.

CATO has been paying a dividend for at least 10 years, so it has a reliable track record.

Dividend Growth(5Y)-17.24%

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

DP0%

EPS Next 2YN/A

EPS Next 3YN/A

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CATO CORP-CLASS A

NYSE:CATO (1/9/2026, 8:04:00 PM)

3.53

+0.31 (+9.63%)

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 Owners32.99%

Inst Owner Change0%

Ins Owners15.87%

Ins Owner Change0%

Market Cap69.72M

Revenue(TTM)660.06M

Net Income(TTM)-9.61M

Analysts43.33

Price TargetN/A

Short Float %2.4%

Short Ratio5.66

Dividend

		Industry Rank	Sector Rank
Dividend Yield	10.1%

Yearly Dividend0.52

Dividend Growth(5Y)-17.24%

DP0%

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	0.11
P/FCF	N/A
P/OCF	N/A
P/B	0.42
P/tB	0.42
EV/EBITDA	N/A

EPS(TTM)-0.5

EYN/A

EPS(NY)N/A

Fwd EYN/A

FCF(TTM)-0.38

FCFYN/A

OCF(TTM)-0.16

OCFYN/A

SpS33.42

BVpS8.49

TBVpS8.49

PEG (NY)N/A

PEG (5Y)N/A

Graham NumberN/A

Profitability

		Industry Rank	Sector Rank
ROA	-2.13%
ROE	-5.73%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	N/A
GM	33.77%
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-Score5

Asset Turnover1.47

Health

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	N/A
Debt/EBITDA	N/A
Cap/Depr	41.54%
Cap/Sales	0.64%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	1.38
Quick Ratio	0.76
Altman-Z	1.75

F-Score5

WACC9.74%

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)40.14%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%65.15%

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)-21.78%

Revenue growth 3Y-5.47%

Revenue growth 5Y-4.67%

Sales Q2Q%6.32%

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y24.08%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y21.83%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-156.32%

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.

What is the valuation status of CATO CORP-CLASS A (CATO) stock?

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.

How financially healthy is CATO CORP-CLASS A?

The financial health rating of CATO CORP-CLASS A (CATO) is 6 / 10.

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?

What is the valuation status of CATO CORP-CLASS A (CATO) stock?

What is the profitability of CATO stock?

How financially healthy is CATO CORP-CLASS A?