Cathay General Bancorp (CATY): Evaluating Valuation Following Q3 Results and Growth in Key Markets

Cathay General Bancorp (CATY) has just published its third quarter 2025 Form 10-Q, showing higher net interest income and net income compared to last year. The update is drawing fresh attention from investors.

See our latest analysis for Cathay General Bancorp.

Cathay General Bancorp’s recent earnings news has energized the stock, with a 3.54% seven-day share price return hinting at building momentum. However, looking longer-term, its one-year total shareholder return of -5.26% reminds us that volatility has been part of the ride, even as the five-year total return sits above 100%.

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With profits rising and shares gaining in recent weeks, investors are now left to wonder whether Cathay General Bancorp is trading at a fair value or if there might be an overlooked buying opportunity as the market considers future growth.

Most Popular Narrative: 10.2% Undervalued

With the most-followed narrative putting fair value at $52.40 versus the recent close of $47.06, the stock appears to be trading below what these projections suggest. This gap, and the reasoning behind it, draws attention to what is driving the narrative’s valuation calculation.

The bank's ongoing investments and progress in digital capabilities are increasing operational efficiency and enabling additional cross-sell opportunities (evidenced by higher foreign exchange and derivative fee income), supporting margin expansion and noninterest income growth. Strong credit discipline, with low nonaccrual and classified loan ratios despite headline charge-off events, underpins stable asset quality, translating to more predictable earnings and reduced long-term credit-cost volatility.

Read the complete narrative.

Want a peek at the financial momentum behind this view? The forecast hinges on steady growth in a lucrative market, tighter profit margins, and a strategic drop in outstanding shares. That is just the beginning; uncover the bold assumptions that could reshape where Cathay General Bancorp is headed.

Result: Fair Value of $52.40 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in commercial real estate loans or lagging digital innovation could quickly undermine the optimistic outlook for Cathay General Bancorp’s future growth.

Find out about the key risks to this Cathay General Bancorp narrative.

Build Your Own Cathay General Bancorp Narrative

If you see things differently or prefer to dive into the numbers on your own terms, it only takes a few minutes to build your own perspective, your way. Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Cathay General Bancorp.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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