Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. More Details
No risks detected for CATY from our risk checks.
Flawless balance sheet average dividend payer.
Share Price & News
How has Cathay General Bancorp's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CATY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: CATY's weekly volatility (5%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: CATY underperformed the US Banks industry which returned 99% over the past year.
Return vs Market: CATY exceeded the US Market which returned 50.5% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Cathay General Bancorp's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 weeks ago | Simply Wall StWhat Kind Of Shareholders Own Cathay General Bancorp (NASDAQ:CATY)?
1 month ago | Simply Wall StWhy Cathay General Bancorp (NASDAQ:CATY) Is A Dividend Rockstar
2 months ago | Simply Wall StThere's A Lot To Like About Cathay General Bancorp's (NASDAQ:CATY) Upcoming US$0.31 Dividend
Is Cathay General Bancorp undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CATY ($43.04) is trading below our estimate of fair value ($77.63)
Significantly Below Fair Value: CATY is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CATY is poor value based on its PE Ratio (13.4x) compared to the US Banks industry average (12.1x).
PE vs Market: CATY is good value based on its PE Ratio (13.4x) compared to the US market (19.9x).
Price to Earnings Growth Ratio
PEG Ratio: CATY is poor value based on its PEG Ratio (4.7x)
Price to Book Ratio
PB vs Industry: CATY is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.1x).
How is Cathay General Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CATY's forecast earnings growth (2.9% per year) is above the savings rate (2%).
Earnings vs Market: CATY's earnings (2.9% per year) are forecast to grow slower than the US market (14.7% per year).
High Growth Earnings: CATY's earnings are forecast to grow, but not significantly.
Revenue vs Market: CATY's revenue (6% per year) is forecast to grow slower than the US market (9% per year).
High Growth Revenue: CATY's revenue (6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CATY's Return on Equity is forecast to be low in 3 years time (10.9%).
How has Cathay General Bancorp performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CATY has high quality earnings.
Growing Profit Margin: CATY's current net profit margins (43.9%) are higher than last year (43.8%).
Past Earnings Growth Analysis
Earnings Trend: CATY's earnings have grown by 9.7% per year over the past 5 years.
Accelerating Growth: CATY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CATY had negative earnings growth (-1.5%) over the past year, making it difficult to compare to the Banks industry average (18%).
Return on Equity
High ROE: CATY's Return on Equity (10.4%) is considered low.
How is Cathay General Bancorp's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: CATY's Assets to Equity ratio (7.8x) is low.
Allowance for Bad Loans: CATY has a sufficient allowance for bad loans (152%).
Low Risk Liabilities: 98% of CATY's liabilities are made up of primarily low risk sources of funding.
Loan Level: CATY has an appropriate level of Loans to Assets ratio (81%).
Low Risk Deposits: CATY's Loans to Deposits ratio (95%) is appropriate.
Level of Bad Loans: CATY has an appropriate level of bad loans (0.6%).
What is Cathay General Bancorp current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CATY's dividend (2.88%) is higher than the bottom 25% of dividend payers in the US market (1.25%).
High Dividend: CATY's dividend (2.88%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: CATY's dividends per share have been stable in the past 10 years.
Growing Dividend: CATY's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (38.6%), CATY's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Chang Liu (53 yo)
Mr. Chang Ming Liu has been President, Chief Executive Officer and Director at Cathay General Bancorp since October 1, 2020. He has been President & Director at Cathay Bank since October 17, 2019 and its C...
CEO Compensation Analysis
Compensation vs Market: Chang's total compensation ($USD2.11M) is below average for companies of similar size in the US market ($USD5.35M).
Compensation vs Earnings: Chang's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Board: CATY's board of directors are considered experienced (8.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Cathay General Bancorp's company bio, employee growth, exchange listings and data sources
- Name: Cathay General Bancorp
- Ticker: CATY
- Exchange: NasdaqGS
- Founded: 1962
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$3.429b
- Shares outstanding: 79.67m
- Website: https://www.cathaygeneralbancorp.com
Number of Employees
- Cathay General Bancorp
- 777 North Broadway
- Los Angeles
- United States
Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in th...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/15 22:27|
|End of Day Share Price||2021/05/14 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.