50.73 USD
-1.57 (-3%)
50.73 USD
0 (0%)
Overall CATY gets a fundamental rating of 5 out of 10. We evaluated CATY against 383 industry peers in the Banks industry. CATY has only an average score on both its financial health and profitability. CATY has a decent growth rate and is not valued too expensively. Finally CATY also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year CATY was profitable.
- CATY had a positive operating cash flow in the past year.
- Of the past 5 years CATY 4 years were profitable.
- Of the past 5 years CATY 4 years had a positive operating cash flow.
1.2 Ratios
- CATY's Return On Assets of 1.27% is amongst the best of the industry. CATY outperforms 80.42% of its industry peers.
- CATY has a Return On Equity of 10.50%. This is in the better half of the industry: CATY outperforms 68.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 10.5% | ||
| 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
1.3 Margins
- With an excellent Profit Margin value of 39.00%, CATY belongs to the best of the industry, outperforming 94.52% of the companies in the same industry.
- CATY's Profit Margin has declined in the last couple of years.
- CATY does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 39% | ||
| 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
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- CATY has a debt to FCF ratio of 0.35. This is a very positive value and a sign of high solvency as it would only need 0.35 years to pay back of all of its debts.
- CATY has a better Debt to FCF ratio (0.35) than 83.55% of its industry peers.
- CATY has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
- CATY has a Debt to Equity ratio of 0.05. This is amongst the best in the industry. CATY outperforms 81.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.35 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC22.99%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.65% over the past year.
- Measured over the past years, CATY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.61% on average per year.
EPS 1Y (TTM)14.65%
EPS 3Y-2.45%
EPS 5Y9.61%
EPS Q2Q%18.75%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.49%
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 12.67% yearly.
- Based on estimates for the next years, CATY will show a small growth in Revenue. The Revenue will grow by 6.92% on average per year.
EPS Next Y15.93%
EPS Next 2Y12.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.37%
Revenue Next 2Y6.92%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- CATY is valuated reasonably with a Price/Earnings ratio of 11.17.
- 67.89% of the companies in the same industry are more expensive than CATY, based on the Price/Earnings ratio.
- CATY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 9.64, which indicates a very decent valuation of CATY.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CATY indicates a somewhat cheap valuation: CATY is cheaper than 67.62% of the companies listed in the same industry.
- CATY is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 9.64 |
4.2 Price Multiples
- 76.50% of the companies in the same industry are more expensive than CATY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.74 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as CATY's earnings are expected to grow with 12.67% in the coming years.
PEG (NY)0.7
PEG (5Y)1.16
EPS Next 2Y12.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- CATY has a Yearly Dividend Yield of 2.59%.
- Compared to an average industry Dividend Yield of 2.84, CATY has a dividend in line with its industry peers.
- CATY's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
5.2 History
- The dividend of CATY has a limited annual growth rate of 2.09%.
- CATY has been paying a dividend for at least 10 years, so it has 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
5.3 Sustainability
- 31.20% 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.
DP31.2%
EPS Next 2Y12.67%
EPS Next 3YN/A
CATHAY GENERAL BANCORP / CATY FAQ
What is the fundamental rating for CATY stock?
ChartMill assigns a fundamental rating of 5 / 10 to CATY.
What is the valuation status of CATHAY GENERAL BANCORP (CATY) stock?
ChartMill assigns a valuation rating of 6 / 10 to CATHAY GENERAL BANCORP (CATY). This can be considered as Fairly Valued.
Can you provide the profitability details for CATHAY GENERAL BANCORP?
CATHAY GENERAL BANCORP (CATY) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for CATY stock?
The Earnings per Share (EPS) of CATHAY GENERAL BANCORP (CATY) is expected to grow by 15.93% in the next year.
Is the dividend of CATHAY GENERAL BANCORP sustainable?
The dividend rating of CATHAY GENERAL BANCORP (CATY) is 7 / 10 and the dividend payout ratio is 31.2%.