CATO CORP-CLASS A (CATO) Fundamental Analysis & Valuation

NYSE:CATO • US1492051065

3.11 USD
+0.05 (+1.63%)
Last: Mar 9, 2026, 08:04 PM
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This CATO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to CATO. CATO was compared to 124 industry peers in the Specialty Retail industry. The financial health of CATO is average, but there are quite some concerns on its profitability. CATO has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

1

1. CATO Profitability Analysis

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.
  • 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.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M

1.2 Ratios

  • With a Return On Assets value of -2.13%, CATO is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
  • CATO has a Return On Equity of -5.73%. This is comparable to the rest of the industry: CATO outperforms 47.58% of its industry peers.
Industry RankSector 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
CATO Yearly ROA, ROE, ROICCATO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10

1.3 Margins

  • CATO has a Gross Margin of 33.77%. This is comparable to the rest of the industry: CATO outperforms 43.55% 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 RankSector 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%
CATO Yearly Profit, Operating, Gross MarginsCATO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30 40

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6

2. CATO Health Analysis

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.
  • CATO has less shares outstanding than it did 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.
CATO Yearly Shares OutstandingCATO Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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.
  • CATO has a Altman-Z score of 1.75. This is comparable to the rest of the industry: CATO outperforms 44.35% of its industry peers.
  • CATO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 1.75
ROIC/WACCN/A
WACC9.68%
CATO Yearly LT Debt VS Equity VS FCFCATO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M 300M 400M

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.
  • With a Current ratio value of 1.38, CATO perfoms like the industry average, outperforming 56.45% of the companies in the same industry.
  • 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.
  • Looking at the Quick ratio, with a value of 0.76, CATO is in the better half of the industry, outperforming 65.32% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.38
Quick Ratio 0.76
CATO Yearly Current Assets VS Current LiabilitesCATO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

0

3. CATO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 40.14% over the past year.
  • Looking at the last year, CATO shows a very negative growth in Revenue. The Revenue has decreased by -21.78% in the last 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)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.
CATO Yearly Revenue VS EstimatesCATO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 2015 2016 2017 2018 0.5 1 1.5 2

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0

4. CATO Valuation Analysis

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

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. CATO Dividend Analysis

5.1 Amount

  • CATO has a Yearly Dividend Yield of 10.10%, which is a nice return.
  • Compared to an average industry Dividend Yield of 2.36, CATO pays a better dividend. On top of this CATO pays more dividend than 97.58% of the companies listed in the same industry.
  • CATO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector 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
CATO Yearly Dividends per shareCATO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

DP0%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M -20M 40M -40M 60M

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CATO Fundamentals: All Metrics, Ratios and Statistics

CATO CORP-CLASS A

NYSE:CATO (3/9/2026, 8:04:00 PM)

3.11

+0.05 (+1.63%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-19
Earnings (Next)03-19
Inst Owners34.01%
Inst Owner Change5.23%
Ins Owners15.87%
Ins Owner Change0%
Market Cap61.42M
Revenue(TTM)660.06M
Net Income(TTM)-9.61M
Analysts43.33
Price TargetN/A
Short Float %2.39%
Short Ratio6.42
Dividend
Industry RankSector 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 RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.09
P/FCF N/A
P/OCF N/A
P/B 0.37
P/tB 0.37
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 RankSector 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 RankSector 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
WACC9.68%
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.