NasdaqGS:CATY

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Cathay General Bancorp

Market Cap

US$3.0b

Last Updated

2021/08/01 22:10 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

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 +/- 4% a week.

Volatility Over Time: CATY's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.1%

CATY

0.9%

US Banks

-0.4%

US Market


1 Year Return

56.6%

CATY

59.1%

US Banks

35.9%

US Market

Return vs Industry: CATY underperformed the US Banks industry which returned 59.1% over the past year.

Return vs Market: CATY exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

CATYIndustryMarket
7 Day2.1%0.9%-0.4%
30 Day-2.6%-3.6%-0.3%
90 Day-9.0%-4.6%3.1%
1 Year62.7%56.6%63.5%59.1%38.0%35.9%
3 Year0.7%-9.6%17.3%7.2%62.9%52.7%
5 Year43.2%22.9%89.5%65.8%121.3%96.9%

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

Valuation

Is Cathay General Bancorp undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CATY ($37.87) is trading below our estimate of fair value ($81.96)

Significantly Below Fair Value: CATY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CATY's PE Ratio (10.8x) is in line with the US Banks industry average.

PE vs Market: CATY is good value based on its PE Ratio (10.8x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: CATY is poor value based on its PEG Ratio (7.7x)


Price to Book Ratio

PB vs Industry: CATY is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.1x).


Future Growth

How is Cathay General Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CATY's forecast earnings growth (1.4% per year) is below the savings rate (2%).

Earnings vs Market: CATY's earnings (1.4% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: CATY's earnings are forecast to grow, but not significantly.

Revenue vs Market: CATY's revenue (5.8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CATY's revenue (5.8% 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%).


Past Performance

How has Cathay General Bancorp performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CATY has high quality earnings.

Growing Profit Margin: CATY's current net profit margins (44.4%) are higher than last year (43.5%).


Past Earnings Growth Analysis

Earnings Trend: CATY's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: CATY's earnings growth over the past year (15.3%) exceeds its 5-year average (9.5% per year).

Earnings vs Industry: CATY earnings growth over the past year (15.3%) underperformed the Banks industry 35%.


Return on Equity

High ROE: CATY's Return on Equity (11.3%) is considered low.


Financial Health

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


Balance Sheet


Financial Institutions Analysis

Asset Level: CATY's Assets to Equity ratio (7.9x) is low.

Allowance for Bad Loans: CATY has a sufficient allowance for bad loans (189%).

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 (80%).

Low Risk Deposits: CATY's Loans to Deposits ratio (94%) is appropriate.

Level of Bad Loans: CATY has an appropriate level of bad loans (0.4%).


Dividend

What is Cathay General Bancorp current dividend yield, its reliability and sustainability?

3.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CATY's dividend (3.27%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: CATY's dividend (3.27%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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 (35.4%), CATY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CATY's dividends in 3 years are forecast to be well covered by earnings (35.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.1yrs

Average board tenure


CEO

Chang Liu (54 yo)

0.75

Tenure

US$2,110,001

Compensation

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 ($USD2.11M) is below average for companies of similar size in the US market ($USD5.32M).

Compensation vs Earnings: Chang's compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: CATY's board of directors are considered experienced (8.1 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cathay General Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cathay General Bancorp
  • Ticker: CATY
  • Exchange: NasdaqGS
  • Founded: 1962
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.960b
  • Shares outstanding: 78.16m
  • Website: https://www.cathaygeneralbancorp.com

Number of Employees


Location

  • Cathay General Bancorp
  • 777 North Broadway
  • Los Angeles
  • California
  • 90012
  • United States

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:10
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.