NasdaqGS:CATY

Stock Analysis Report

Cathay General Bancorp

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.

Snowflake

Fundamentals

Flawless balance sheet and good value.


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


Market Performance


7 Day Return

-4.5%

NasdaqGS:CATY

-1.9%

US Banks

-1.9%

US Market


1 Year Return

-23.8%

NasdaqGS:CATY

-16.1%

US Banks

-3.3%

US Market

CATY underperformed the Banks industry which returned -16.1% over the past year.

CATY underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

CATYIndustryMarket
7 Day-4.5%-1.9%-1.9%
30 Day-13.4%-11.1%-6.2%
90 Day-8.1%-4.9%0.3%
1 Year-21.4%-23.8%-13.7%-16.1%-1.1%-3.3%
3 Year12.4%4.1%37.8%28.4%37.9%28.9%
5 Year39.1%24.5%49.3%33.2%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Cathay General Bancorp's share price is below the future cash flow value, and at a moderate discount (> 20%).

Cathay General Bancorp's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Cathay General Bancorp is good value based on earnings compared to the US Banks industry average.

Cathay General Bancorp is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Cathay General Bancorp earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Cathay General Bancorp is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Cathay General Bancorp expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

-0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cathay General Bancorp's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).

Cathay General Bancorp's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Cathay General Bancorp's revenue growth is positive but not above the United States of America market average.

Cathay General Bancorp's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Cathay General Bancorp's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Cathay General Bancorp will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

14.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cathay General Bancorp's year on year earnings growth rate has been positive over the past 5 years.

Cathay General Bancorp's 1-year earnings growth exceeds its 5-year average (28.2% vs 14.5%)

Cathay General Bancorp's earnings growth has not exceeded the US Banks industry average in the past year (28.2% vs 33.1%).


Return on Equity

Cathay General Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Cathay General Bancorp used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Cathay General Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

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

Information is not available.

Information is not available.


Financial Institutions Analysis

Cathay General Bancorp has an acceptable proportion of non-loan assets held.

Cathay General Bancorp has a sufficient allowance for bad loans.

Cathay General Bancorp's liabilities are made up of primarily low risk sources of funding.

Cathay General Bancorp's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Cathay General Bancorp are broadly funded by customer deposits.

Cathay General Bancorp has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

3.98%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Cathay General Bancorp before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Cathay General Bancorp's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Cathay General Bancorp's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.7x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Cathay General Bancorp's salary, the management and board of directors tenure and is there insider trading?

10.0yrs

Average management tenure


CEO

Pin Tai (65yo)

2.8yrs

Tenure

US$2,274,424

Compensation

Mr. Pin Tai has been the Chief Executive Officer and President of Cathay General Bancorp and Chief Executive Officer of Cathay Bank since October 2016, and President and a Director of Cathay Bank since Apr ...


CEO Compensation Analysis

Pin's remuneration is lower than average for companies of similar size in United States of America.

Pin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

10.0yrs

Average Tenure

65yo

Average Age

The average tenure for the Cathay General Bancorp management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

15.8yrs

Average Tenure

71yo

Average Age

The average tenure for the Cathay General Bancorp board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Cathay General Bancorp individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$123,11425 Jul 19
Kim Bingham
EntityIndividual
Role
Other Key Executive
Executive VP & Chief Risk Officer of Cathay Bank
Shares3,400
Max PriceUS$36.21
SellUS$159,26408 Mar 19
Kim Bingham
EntityIndividual
Role
Other Key Executive
Executive VP & Chief Risk Officer of Cathay Bank
Shares4,200
Max PriceUS$37.92
SellUS$397,62723 Feb 19
Anthony Tang
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares10,000
Max PriceUS$39.76
SellUS$33,85306 Feb 19
Kim Bingham
EntityIndividual
Role
Other Key Executive
Executive VP & Chief Risk Officer of Cathay Bank
Shares900
Max PriceUS$37.62
BuyUS$18,72508 Dec 18
Kelly Chan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceUS$37.45
SellUS$1,199,45530 Nov 18
Dunson Cheng
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares31,000
Max PriceUS$38.69

Ownership Breakdown


Management Team

  • Heng Chen (66yo)

    Executive VP

    • Tenure: 16.2yrs
    • Compensation: US$1.17m
  • Dunson Cheng (74yo)

    Executive Chairman of the Board

    • Tenure: 25.6yrs
    • Compensation: US$2.20m
  • Irwin Wong (70yo)

    Senior Executive VP & Chief Administrative Officer of Cathay Bank

    • Tenure: 20.6yrs
    • Compensation: US$1.17m
  • Kim Bingham (62yo)

    Executive VP & Chief Risk Officer of Cathay Bank

    • Tenure: 15.0yrs
    • Compensation: US$813.89k
  • Mark Lee (56yo)

    Executive VP & Chief Credit Officer of Cathay Bank

    • Tenure: 1.7yrs
  • Pin Tai (65yo)

    CEO, President & Director

    • Tenure: 2.8yrs
    • Compensation: US$2.27m
  • Lisa Kim (54yo)

    Executive VP

    • Tenure: 4.9yrs
  • Georgia Lo

    Assistant Secretary

    • Tenure: 0.0yrs

Board Members

  • Peter Wu (70yo)

    Vice Chairman of the Board

    • Tenure: 15.8yrs
    • Compensation: US$388.38k
  • Dunson Cheng (74yo)

    Executive Chairman of the Board

    • Tenure: 25.6yrs
    • Compensation: US$2.20m
  • Tony Tang (65yo)

    Vice Chairman of the Board

    • Tenure: 5.8yrs
    • Compensation: US$369.72k
  • Ting Liu (82yo)

    Director

    • Tenure: 15.8yrs
    • Compensation: US$171.98k
  • Joseph C. Poon (72yo)

    Director

    • Tenure: 29.6yrs
    • Compensation: US$167.73k
  • Kelly Chan (72yo)

    Director

    • Tenure: 29.6yrs
    • Compensation: US$174.73k
  • Michael M. Chang (82yo)

    Director

    • Tenure: 29.6yrs
    • Compensation: US$181.48k
  • Nelson Chung (66yo)

    Lead Director

    • Tenure: 2.3yrs
    • Compensation: US$155.73k
  • Jane Jelenko (70yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: US$178.73k
  • Pin Tai (65yo)

    CEO, President & Director

    • Tenure: 2.8yrs
    • Compensation: US$2.27m

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$2.588b
  • Shares outstanding: 79.82m
  • Website: https://www.cathaygeneralbancorp.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CATYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1990
CN7DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1990

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 Analysis2019/08/25 23:33
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.