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CATHAY GENERAL BANCORP (CATY) Stock Fundamental Analysis

NASDAQ:CATY - Nasdaq - US1491501045 - Common Stock - Currency: USD

37.97  -0.66 (-1.71%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to CATY. CATY was compared to 398 industry peers in the Banks industry. Both the profitability and the financial health of CATY get a neutral evaluation. Nothing too spectacular is happening here. CATY has a correct valuation and a medium growth rate. Finally CATY also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

CATY had positive earnings in the past year.
CATY had a positive operating cash flow in the past year.
CATY had positive earnings in each of the past 5 years.
In the past 5 years CATY always reported a positive cash flow from operatings.
CATY Yearly Net Income VS EBIT VS OCF VS FCFCATY 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 100M 200M 300M 400M

1.2 Ratios

CATY's Return On Assets of 1.24% is amongst the best of the industry. CATY outperforms 81.16% of its industry peers.
The Return On Equity of CATY (10.05%) is better than 67.59% of its industry peers.
Industry RankSector Rank
ROA 1.24%
ROE 10.05%
ROIC N/A
ROA(3y)1.47%
ROA(5y)1.41%
ROE(3y)12.52%
ROE(5y)11.85%
ROIC(3y)N/A
ROIC(5y)N/A
CATY Yearly ROA, ROE, ROICCATY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10

1.3 Margins

CATY's Profit Margin of 39.19% is amongst the best of the industry. CATY outperforms 94.47% of its industry peers.
In the last couple of years the Profit Margin of CATY has declined.
CATY does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 39.19%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.01%
PM growth 5Y-2.72%
GM growth 3YN/A
GM growth 5YN/A
CATY Yearly Profit, Operating, Gross MarginsCATY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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4

2. Health

2.1 Basic Checks

CATY does not have a ROIC to compare to the WACC, probably because it is not profitable.
CATY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CATY has been reduced compared to 5 years ago.
CATY has a worse debt/assets ratio than last year.
CATY Yearly Shares OutstandingCATY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
CATY Yearly Total Debt VS Total AssetsCATY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

CATY has a debt to FCF ratio of 0.42. This is a very positive value and a sign of high solvency as it would only need 0.42 years to pay back of all of its debts.
CATY's Debt to FCF ratio of 0.42 is amongst the best of the industry. CATY outperforms 85.43% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that CATY is not too dependend on debt financing.
CATY has a Debt to Equity ratio of 0.05. This is amongst the best in the industry. CATY outperforms 82.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.42
Altman-Z N/A
ROIC/WACCN/A
WACC26.41%
CATY Yearly LT Debt VS Equity VS FCFCATY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
CATY Yearly Current Assets VS Current LiabilitesCATY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

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4

3. Growth

3.1 Past

The earnings per share for CATY have decreased strongly by -18.52% in the last year.
Measured over the past 5 years, CATY shows a small growth in Earnings Per Share. The EPS has been growing by 2.62% on average per year.
CATY shows a decrease in Revenue. In the last year, the revenue decreased by -9.89%.
CATY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.30% yearly.
EPS 1Y (TTM)-18.52%
EPS 3Y1.3%
EPS 5Y2.62%
EPS Q2Q%-0.88%
Revenue 1Y (TTM)-9.89%
Revenue growth 3Y3.8%
Revenue growth 5Y3.3%
Sales Q2Q%-9.14%

3.2 Future

CATY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.41% yearly.
CATY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.82% yearly.
EPS Next Y8.81%
EPS Next 2Y10.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.12%
Revenue Next 2Y6.82%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
CATY Yearly Revenue VS EstimatesCATY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
CATY Yearly EPS VS EstimatesCATY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.59 indicates a reasonable valuation of CATY.
Compared to the rest of the industry, the Price/Earnings ratio of CATY indicates a somewhat cheap valuation: CATY is cheaper than 71.36% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CATY to the average of the S&P500 Index (28.29), we can say CATY is valued rather cheaply.
CATY is valuated reasonably with a Price/Forward Earnings ratio of 8.81.
64.57% of the companies in the same industry are more expensive than CATY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, CATY is valued rather cheaply.
Industry RankSector Rank
PE 9.59
Fwd PE 8.81
CATY Price Earnings VS Forward Price EarningsCATY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of CATY indicates a somewhat cheap valuation: CATY is cheaper than 71.61% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 8.17
EV/EBITDA N/A
CATY Per share dataCATY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

CATY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.09
PEG (5Y)3.66
EPS Next 2Y10.41%
EPS Next 3YN/A

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.52%, CATY has a reasonable but not impressive dividend return.
The stock price of CATY dropped by -20.07% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.66, CATY has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, CATY pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.52%

5.2 History

The dividend of CATY has a limited annual growth rate of 2.09%.
CATY has paid a dividend for at least 10 years, which is a reliable track record.
CATY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.09%
Div Incr Years0
Div Non Decr Years14
CATY Yearly Dividends per shareCATY Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

34.26% of the earnings are spent on dividend by CATY. This is a low number and sustainable payout ratio.
The dividend of CATY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.26%
EPS Next 2Y10.41%
EPS Next 3YN/A
CATY Yearly Income VS Free CF VS DividendCATY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
CATY Dividend Payout.CATY Dividend Payout, showing the Payout Ratio.CATY Dividend Payout.PayoutRetained Earnings

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CATHAY GENERAL BANCORP

NASDAQ:CATY (4/21/2025, 1:15:02 PM)

37.97

-0.66 (-1.71%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-22 2025-01-22/amc
Earnings (Next)04-21 2025-04-21/amc
Inst Owners76.67%
Inst Owner Change-0.49%
Ins Owners1.45%
Ins Owner Change4.53%
Market Cap2.66B
Analysts78.18
Price Target53.04 (39.69%)
Short Float %3.23%
Short Ratio6.33
Dividend
Industry RankSector Rank
Dividend Yield 3.52%
Yearly Dividend1.37
Dividend Growth(5Y)2.09%
DP34.26%
Div Incr Years0
Div Non Decr Years14
Ex-Date02-27 2025-02-27 (0.34)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.59%
Min EPS beat(2)-2.99%
Max EPS beat(2)-0.18%
EPS beat(4)0
Avg EPS beat(4)-2.23%
Min EPS beat(4)-3.72%
Max EPS beat(4)-0.18%
EPS beat(8)4
Avg EPS beat(8)1.35%
EPS beat(12)6
Avg EPS beat(12)1.52%
EPS beat(16)10
Avg EPS beat(16)3.45%
Revenue beat(2)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-1.14%
Max Revenue beat(2)2.07%
Revenue beat(4)1
Avg Revenue beat(4)-2.44%
Min Revenue beat(4)-8.38%
Max Revenue beat(4)2.07%
Revenue beat(8)3
Avg Revenue beat(8)-1.5%
Revenue beat(12)5
Avg Revenue beat(12)-0.9%
Revenue beat(16)7
Avg Revenue beat(16)-0.61%
PT rev (1m)-0.76%
PT rev (3m)-0.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.8%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)1.46%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)1.51%
Valuation
Industry RankSector Rank
PE 9.59
Fwd PE 8.81
P/S 3.64
P/FCF 8.17
P/OCF 8.07
P/B 0.93
P/tB 1.08
EV/EBITDA N/A
EPS(TTM)3.96
EY10.43%
EPS(NY)4.31
Fwd EY11.35%
FCF(TTM)4.65
FCFY12.25%
OCF(TTM)4.7
OCFY12.38%
SpS10.42
BVpS40.65
TBVpS35.24
PEG (NY)1.09
PEG (5Y)3.66
Profitability
Industry RankSector Rank
ROA 1.24%
ROE 10.05%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 39.19%
GM N/A
FCFM 44.61%
ROA(3y)1.47%
ROA(5y)1.41%
ROE(3y)12.52%
ROE(5y)11.85%
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 3Y-5.01%
PM growth 5Y-2.72%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.42
Debt/EBITDA N/A
Cap/Depr 21.61%
Cap/Sales 0.5%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 113.83%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC26.41%
ROIC/WACCN/A
Cap/Depr(3y)24.8%
Cap/Depr(5y)39.19%
Cap/Sales(3y)0.45%
Cap/Sales(5y)0.58%
Profit Quality(3y)116.73%
Profit Quality(5y)119.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-18.52%
EPS 3Y1.3%
EPS 5Y2.62%
EPS Q2Q%-0.88%
EPS Next Y8.81%
EPS Next 2Y10.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.89%
Revenue growth 3Y3.8%
Revenue growth 5Y3.3%
Sales Q2Q%-9.14%
Revenue Next Year6.12%
Revenue Next 2Y6.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-14.64%
FCF growth 3Y-0.51%
FCF growth 5Y-5.32%
OCF growth 1Y-14.45%
OCF growth 3Y-0.52%
OCF growth 5Y-5.42%