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CATHAY GENERAL BANCORP (CATY) Stock Fundamental Analysis

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

44.01  +1.16 (+2.71%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to CATY. CATY was compared to 395 industry peers in the Banks industry. CATY has only an average score on both its financial health and profitability. CATY has a correct valuation and a medium growth rate. CATY also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year CATY was profitable.
CATY had a positive operating cash flow in the past year.
In the past 5 years CATY has always been profitable.
Each year in the past 5 years CATY had a positive operating cash flow.
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

With an excellent Return On Assets value of 1.24%, CATY belongs to the best of the industry, outperforming 80.51% of the companies in the same industry.
The Return On Equity of CATY (10.05%) is better than 66.84% 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

The Profit Margin of CATY (39.19%) is better than 94.43% of its industry peers.
CATY's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for CATY so they could not be analyzed.
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.
The number of shares outstanding for CATY has been reduced compared to 1 year ago.
CATY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CATY is higher compared to a year ago.
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

The Debt to FCF ratio of CATY is 0.42, which is an excellent value as it means it would take CATY, only 0.42 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.42, CATY belongs to the best of the industry, outperforming 83.29% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that CATY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.05, CATY belongs to the top of the industry, outperforming 81.27% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.42
Altman-Z N/A
ROIC/WACCN/A
WACC25.04%
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

CATY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.39%.
CATY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.62% yearly.
Looking at the last year, CATY shows a decrease in Revenue. The Revenue has decreased by -4.63% in the last year.
CATY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.30% yearly.
EPS 1Y (TTM)-12.39%
EPS 3Y1.3%
EPS 5Y2.62%
EPS Q2Q%0%
Revenue 1Y (TTM)-4.63%
Revenue growth 3Y3.8%
Revenue growth 5Y3.3%
Sales Q2Q%7.23%

3.2 Future

Based on estimates for the next years, CATY will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.63% on average per year.
Based on estimates for the next years, CATY will show a small growth in Revenue. The Revenue will grow by 7.81% on average per year.
EPS Next Y12.97%
EPS Next 2Y12.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.73%
Revenue Next 2Y7.81%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 5

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6

4. Valuation

4.1 Price/Earnings Ratio

CATY is valuated reasonably with a Price/Earnings ratio of 11.11.
Based on the Price/Earnings ratio, CATY is valued a bit cheaper than the industry average as 62.28% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CATY to the average of the S&P500 Index (25.91), we can say CATY is valued rather cheaply.
A Price/Forward Earnings ratio of 8.76 indicates a reasonable valuation of CATY.
Based on the Price/Forward Earnings ratio, CATY is valued a bit cheaper than the industry average as 68.35% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.77. CATY is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.11
Fwd PE 8.76
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

Based on the Price/Free Cash Flow ratio, CATY is valued a bit cheaper than 63.80% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.48
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CATY's earnings are expected to grow with 12.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)4.25
EPS Next 2Y12.63%
EPS Next 3YN/A

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.11%, CATY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.45, CATY has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, CATY pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.11%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
CATY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.26%
EPS Next 2Y12.63%
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 (5/27/2025, 2:59:05 PM)

44.01

+1.16 (+2.71%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-21 2025-04-21/amc
Earnings (Next)07-21 2025-07-21/amc
Inst Owners76.67%
Inst Owner Change0.26%
Ins Owners1.45%
Ins Owner Change6.33%
Market Cap3.09B
Analysts51.11
Price Target47.94 (8.93%)
Short Float %2.52%
Short Ratio3.38
Dividend
Industry RankSector Rank
Dividend Yield 3.11%
Yearly Dividend1.37
Dividend Growth(5Y)2.09%
DP34.26%
Div Incr Years0
Div Non Decr Years14
Ex-Date05-29 2025-05-29 (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)-3.69%
PT rev (3m)-10.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)3.82%
EPS NY rev (3m)3.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)2.33%
Valuation
Industry RankSector Rank
PE 11.11
Fwd PE 8.76
P/S 4.23
P/FCF 9.48
P/OCF 9.37
P/B 1.08
P/tB 1.25
EV/EBITDA N/A
EPS(TTM)3.96
EY9%
EPS(NY)5.02
Fwd EY11.42%
FCF(TTM)4.64
FCFY10.55%
OCF(TTM)4.69
OCFY10.67%
SpS10.41
BVpS40.59
TBVpS35.18
PEG (NY)0.86
PEG (5Y)4.25
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
WACC25.04%
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)-12.39%
EPS 3Y1.3%
EPS 5Y2.62%
EPS Q2Q%0%
EPS Next Y12.97%
EPS Next 2Y12.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.63%
Revenue growth 3Y3.8%
Revenue growth 5Y3.3%
Sales Q2Q%7.23%
Revenue Next Year8.73%
Revenue Next 2Y7.81%
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%