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Cathay General Bancorp

Nasdaq:CATY
Snowflake Description

Flawless balance sheet with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CATY
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

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. The last earnings update was 11 days ago. More info.


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CATY Share Price and Events
7 Day Returns
1.6%
NasdaqGS:CATY
-3.2%
US Banks
-0.7%
US Market
1 Year Returns
-15.3%
NasdaqGS:CATY
-10.8%
US Banks
3%
US Market
CATY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cathay General Bancorp (CATY) 1.6% 1.7% -8.3% -15.3% 22% 51.3%
US Banks -3.2% -3.4% -2.3% -10.8% 41.5% 46.8%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • CATY underperformed the Banks industry which returned -10.8% over the past year.
  • CATY underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
CATY
Industry
5yr Volatility vs Market

Value

 Is Cathay General Bancorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cathay General Bancorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cathay General Bancorp.

NasdaqGS:CATY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= $29.42 * 12.6%
$3.71
Book Value of Equity per Share Weighted future Book Value estimates from 6 analysts. $29.42
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CATY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.62
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.62 (1 + (1- 21%) (22.83%))
0.82
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.82 * 5.96%)
7.62%

Discounted Cash Flow Calculation for NasdaqGS:CATY using Excess Returns Model Model

The calculations below outline how an intrinsic value for Cathay General Bancorp is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:CATY Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.6% – 7.62%) * $29.42)
$1.47
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $1.47 / (7.62% - 2.73%)
$30.03
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $29.42 + $30.03
$59.45
NasdaqGS:CATY Discount to Share Price
Calculation Result
Value per share (USD) From above. $59.45
Current discount Discount to share price of $36.18
= -1 x ($36.18 - $59.45) / $59.45
39.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Cathay General Bancorp is available for.
Intrinsic value
39%
Share price is $36.18 vs Future cash flow value of $59.45
Current Discount Checks
For Cathay General Bancorp to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cathay General Bancorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cathay General Bancorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CATY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.39
NasdaqGS:CATY Share Price ** NasdaqGS (2019-05-17) in USD $36.18
United States of America Banks Industry PE Ratio Median Figure of 593 Publicly-Listed Banks Companies 12.77x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cathay General Bancorp.

NasdaqGS:CATY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CATY Share Price ÷ EPS (both in USD)

= 36.18 ÷ 3.39

10.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Cathay General Bancorp's expected growth come at a high price?
Raw Data
NasdaqGS:CATY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.66x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
2.4%per year
United States of America Banks Industry PEG Ratio Median Figure of 269 Publicly-Listed Banks Companies 1.39x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGS:CATY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.66x ÷ 2.4%

4.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cathay General Bancorp is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cathay General Bancorp's assets?
Raw Data
NasdaqGS:CATY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $26.92
NasdaqGS:CATY Share Price * NasdaqGS (2019-05-17) in USD $36.18
United States of America Banks Industry PB Ratio Median Figure of 598 Publicly-Listed Banks Companies 1.2x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NasdaqGS:CATY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CATY Share Price ÷ Book Value per Share (both in USD)

= 36.18 ÷ 26.92

1.34x

* Primary Listing of Cathay General Bancorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cathay General Bancorp is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess Cathay General Bancorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Cathay General Bancorp has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Cathay General Bancorp expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cathay General Bancorp expected to grow at an attractive rate?
  • Cathay General Bancorp's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Cathay General Bancorp's earnings growth is positive but not above the United States of America market average.
  • Cathay General Bancorp's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CATY Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CATY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 2.4%
NasdaqGS:CATY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 4.6%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CATY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CATY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 661 287 7
2019-12-31 628 280 7
NasdaqGS:CATY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 617 339 275
2018-12-31 605 337 272
2018-09-30 589 365 233
2018-06-30 575 269 213
2018-03-31 551 280 191
2017-12-31 529 249 176
2017-09-30 503 187 198
2017-06-30 475 273 194
2017-03-31 468 247 178
2016-12-31 467 234 175
2016-09-30 461 223 169
2016-06-30 456 182 161

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cathay General Bancorp's earnings are expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
  • Cathay General Bancorp's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CATY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Cathay General Bancorp Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CATY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 3.59 3.62 3.56 7.00
2019-12-31 3.49 3.53 3.41 7.00
NasdaqGS:CATY Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.39
2018-12-31 3.35
2018-09-30 2.87
2018-06-30 2.63
2018-03-31 2.37
2017-12-31 2.19
2017-09-30 2.48
2017-06-30 2.45
2017-03-31 2.25
2016-12-31 2.21
2016-09-30 2.12
2016-06-30 2.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Cathay General Bancorp will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Cathay General Bancorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cathay General Bancorp has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cathay General Bancorp's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (43.9% vs 14.2%)
  • Cathay General Bancorp's earnings growth has exceeded the US Banks industry average in the past year (43.9% vs 40.7%).
Earnings and Revenue History
Cathay General Bancorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cathay General Bancorp Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CATY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 617.48 274.75 201.98
2018-12-31 604.55 271.89 199.65
2018-09-30 588.86 233.18 196.59
2018-06-30 575.15 213.17 194.32
2018-03-31 550.86 190.92 186.65
2017-12-31 528.88 176.04 178.56
2017-09-30 503.42 198.12 171.84
2017-06-30 475.33 194.46 164.76
2017-03-31 467.81 177.88 157.83
2016-12-31 466.89 175.10 158.18
2016-09-30 460.79 168.53 153.04
2016-06-30 456.21 160.92 150.45
2016-03-31 442.75 171.29 152.73
2015-12-31 423.82 161.11 146.75
2015-09-30 409.77 155.24 144.39
2015-06-30 402.55 152.67 143.90
2015-03-31 398.37 142.55 142.16
2014-12-31 394.11 137.83 142.18
2014-09-30 386.69 134.15 141.64
2014-06-30 388.19 128.29 141.89
2014-03-31 390.21 121.05 140.78
2013-12-31 388.00 113.46 140.87
2013-09-30 390.96 105.74 140.61
2013-06-30 384.67 101.93 135.12
2013-03-31 378.29 99.82 132.31
2012-12-31 376.76 100.95 128.95
2012-09-30 369.80 100.36 126.63
2012-06-30 362.54 96.10 125.29

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cathay General Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cathay General Bancorp used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • 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.
X
Past performance checks
We assess Cathay General Bancorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cathay General Bancorp has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Cathay General Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Cathay General Bancorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cathay General Bancorp Company Filings, last reported 1 month ago.

NasdaqGS:CATY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,163.33 664.06 531.34
2018-12-31 2,121.87 738.51 593.49
2018-09-30 2,116.78 528.07 582.42
2018-06-30 2,064.83 743.60 404.53
2018-03-31 2,009.79 637.49 725.23
2017-12-31 1,973.30 742.07 236.86
2017-09-30 1,968.70 832.74 169.59
2017-06-30 1,897.77 762.34 162.92
2017-03-31 1,857.90 612.40 191.62
2016-12-31 1,828.54 839.93 210.52
2016-09-30 1,793.44 1,187.55 205.58
2016-06-30 1,759.06 1,093.49 231.51
2016-03-31 1,734.67 1,012.84 195.94
2015-12-31 1,747.78 816.85 175.39
2015-09-30 1,732.09 617.76 199.74
2015-06-30 1,669.07 756.69 169.23
2015-03-31 1,634.25 1,040.19 182.16
2014-12-31 1,602.89 1,019.08 171.23
2014-09-30 1,570.38 1,247.42 202.20
2014-06-30 1,538.36 1,360.92 249.26
2014-03-31 1,494.40 1,479.66 167.76
2013-12-31 1,458.97 1,467.54 158.47
2013-09-30 1,435.30 1,366.44 212.47
2013-06-30 1,539.42 1,272.76 141.07
2013-03-31 1,549.57 1,468.42 163.29
2012-12-31 1,629.50 1,587.64 139.61
2012-09-30 1,605.94 1,562.15 121.67
2012-06-30 1,573.00 1,613.00 251.11
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Cathay General Bancorp has an acceptable proportion of non-loan assets held.
  • Cathay General Bancorp's liabilities are made up of primarily low risk sources of funding.
  • Loans at Cathay General Bancorp are broadly funded by customer deposits.
  • Cathay General Bancorp's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Cathay General Bancorp has a sufficient allowance for bad loans.
  • Cathay General Bancorp has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Cathay General Bancorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cathay General Bancorp has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.43%
Current annual income from Cathay General Bancorp dividends. Estimated to be 3.57% next year.
If you bought $2,000 of Cathay General Bancorp shares you are expected to receive $69 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cathay General Bancorp's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Cathay General Bancorp's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Upcoming dividend payment

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

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CATY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 473 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CATY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.33 6.00
2019-12-31 1.26 6.00
NasdaqGS:CATY Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-16 1.240 3.412
2019-02-22 1.240 3.436
2018-11-16 1.240 3.383
2018-08-17 0.960 2.366
2018-05-17 0.960 2.282
2018-02-16 0.960 2.333
2017-11-17 0.960 2.226
2017-08-18 0.840 2.174
2017-05-19 0.840 2.254
2017-02-17 0.840 2.205
2016-11-18 0.840 2.256
2016-08-19 0.720 2.320
2016-05-20 0.720 2.433
2016-02-19 0.720 2.492
2015-11-20 0.720 2.433
2015-08-21 0.560 1.823
2015-05-22 0.560 1.741
2015-02-23 0.400 1.423
2014-11-21 0.400 1.600
2014-08-22 0.280 1.092
2014-05-23 0.280 1.101
2014-02-21 0.200 0.811
2013-11-25 0.200 0.790
2013-08-16 0.040 0.168
2013-05-17 0.040 0.184
2013-02-22 0.040 0.203
2012-11-16 0.040 0.211
2012-08-17 0.040 0.231
2012-05-18 0.040 0.246
2012-02-17 0.040 0.234
2011-11-22 0.040 0.266
2011-08-19 0.040 0.319
2011-05-20 0.040 0.274
2011-02-18 0.040 0.238
2010-11-19 0.040 0.245
2010-08-19 0.040 0.332
2010-05-20 0.040 0.362
2010-02-19 0.040 0.341
2009-11-17 0.040 0.475
2009-07-29 0.040 0.441

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Cathay General Bancorp's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x 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.
X
Income/ dividend checks
We assess Cathay General Bancorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cathay General Bancorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cathay General Bancorp has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pin Tai
COMPENSATION $2,274,424
AGE 64
TENURE AS CEO 2.6 years
CEO Bio

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 April 2015. Mr. Tai has been Director of the Cathay General Bancorp since August 22, 2017. Mr. Tai joined Cathay Bank in 1999 as General Manager of New York Regions with a goal to establish footing in the East Coast region. He served as Executive Vice President of the Bank from 2006 to 2015; Deputy Chief Lending Officer and General Manager of Eastern Regions of the Bank from 2010 to 2013; and General Manager of Eastern Regions of the Bank from 2006 to 2009. He served as Chief Lending Officer of Cathay Bank since 2013 until March 2015. He has also been a Director of Cathay Bank Foundation since 2004. Mr. Tai has over 32 years of banking experience. Prior to joining the Bank, Mr. Tai worked at Bank of China in its New York office to help establish its commercial lending operations in the United States.

CEO Compensation
  • Pin's compensation has been consistent with company performance over the past year.
  • Pin's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Cathay General Bancorp management team in years:

9.7
Average Tenure
64
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.
Management Team

Dunson Cheng

TITLE
Executive Chairman of the Board
COMPENSATION
$2M
AGE
73

Pin Tai

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
64
TENURE
2.6 yrs

Heng Chen

TITLE
Executive VP
COMPENSATION
$1M
AGE
65
TENURE
15.9 yrs

Irwin Wong

TITLE
Senior Executive VP & Chief Administrative Officer of Cathay Bank
COMPENSATION
$1M
AGE
69
TENURE
20.3 yrs

Kim Bingham

TITLE
Executive VP & Chief Risk Officer of Cathay Bank
COMPENSATION
$814K
AGE
61
TENURE
14.8 yrs

Lisa Kim

TITLE
Executive VP
AGE
53
TENURE
4.7 yrs

Mark Lee

TITLE
Executive VP & Chief Credit Officer of Cathay Bank
AGE
55
TENURE
1.4 yrs

Georgia Lo

TITLE
Assistant Secretary
Board of Directors Tenure

Average tenure and age of the Cathay General Bancorp board of directors in years:

15.6
Average Tenure
70
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.
Board of Directors

Pin Tai

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
64
TENURE
1.8 yrs

Tony Tang

TITLE
Vice Chairman of the Board
COMPENSATION
$370K
AGE
64
TENURE
5.6 yrs

Dunson Cheng

TITLE
Executive Chairman of the Board
COMPENSATION
$2M
AGE
73
TENURE
25.3 yrs

Peter Wu

TITLE
Vice Chairman of the Board
COMPENSATION
$388K
AGE
69
TENURE
15.6 yrs

Joseph C. Poon

TITLE
Director
COMPENSATION
$168K
AGE
71
TENURE
29.3 yrs

Kelly Chan

TITLE
Director
COMPENSATION
$175K
AGE
71
TENURE
29.3 yrs

Ting Liu

TITLE
Director
COMPENSATION
$172K
AGE
81
TENURE
15.6 yrs

Jane Jelenko

TITLE
Director
COMPENSATION
$179K
AGE
69
TENURE
7.3 yrs

Nelson Chung

TITLE
Lead Director
COMPENSATION
$156K
AGE
65
TENURE
2 yrs

Michael M. Chang

TITLE
Director
COMPENSATION
$181K
AGE
81
TENURE
29.3 yrs
Who owns this company?
Recent Insider Trading
  • Cathay General Bancorp insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Mar 19 Sell Kim Bingham Individual 06. Mar 19 06. Mar 19 -4,200 $37.92 $-159,264
23. Feb 19 Sell Anthony Tang Individual 20. Feb 19 20. Feb 19 -10,000 $39.76 $-397,627
06. Feb 19 Sell Kim Bingham Individual 04. Feb 19 04. Feb 19 -900 $37.62 $-33,853
08. Dec 18 Buy Kelly Chan Individual 04. Dec 18 04. Dec 18 500 $37.45 $18,725
30. Nov 18 Sell Dunson Cheng Individual 27. Nov 18 27. Nov 18 -31,000 $38.69 $-1,199,455
21. Aug 18 Sell Anthony Tang Individual 17. Aug 18 20. Aug 18 -10,000 $42.50 $-425,000
13. Aug 18 Sell Lisa Kim Individual 10. Aug 18 10. Aug 18 -750 $42.06 $-31,542
09. Aug 18 Sell Anthony Tang Individual 07. Aug 18 08. Aug 18 -11,510 $42.50 $-489,175
06. Aug 18 Sell Anthony Tang Individual 02. Aug 18 03. Aug 18 -13,490 $42.50 $-573,335
09. Jun 18 Sell Irwin Wong Individual 06. Jun 18 06. Jun 18 -6,409 $43.00 $-275,587
X
Management checks
We assess Cathay General Bancorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cathay General Bancorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Intrinsic Calculation For Cathay General Bancorp (NASDAQ:CATY) Shows Investors Are Overpaying

Pricing CATY, a financial stock, can be difficult since these banks have cash flows that are affected by regulations that are not imposed upon other sectors. … Banks, for example, must hold certain levels of tiered capital in order to maintain a safe cash cushion.

Simply Wall St -

Should You Buy Cathay General Bancorp (NASDAQ:CATY) For Its Dividend?

Historically, Cathay General Bancorp (NASDAQ:CATY) has paid dividends to shareholders, and these days it yields 3.3%. … Let's dig deeper into whether Cathay General Bancorp should have a place in your portfolio. … See our latest analysis for Cathay General Bancorp?

Simply Wall St -

What Makes Cathay General Bancorp (NASDAQ:CATY) A Hard Investment?

Cathay General Bancorp’s (NASDAQ:CATY) profitability and risk are largely affected by the underlying economic growth for the region it operates in US given it is a small-cap stock with a market capitalisation of US$2.8b. … The Basel III reforms are aimed at banking regulations to improve financial institutions’ ability to absorb shocks caused by economic stress which could expose banks like Cathay General Bancorp to vulnerabilities. … Today we will be measuring Cathay General Bancorp’s financial risk position by looking at three leverage and liquidity metrics.

Simply Wall St -

Read This Before Buying Cathay General Bancorp (NASDAQ:CATY) Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Cathay General Bancorp (NASDAQ:CATY). … The Last 12 Months Of Insider Transactions At Cathay General Bancorp. … Over the last year we saw more insider selling of Cathay General Bancorp shares, than buying.

Simply Wall St -

Are You Considering All The Risks For Cathay General Bancorp’s (NASDAQ:CATY)?

As a small-cap bank with a market capitalisation of US$3.0b, Cathay General Bancorp’s (NASDAQ:CATY) profit and value are directly affected by economic activity. … Risk associate with repayment is measured by the level of bad debt which is an expense written off Cathay General Bancorp’s bottom line. … Check out our latest analysis for Cathay General Bancorp

Simply Wall St -

Do You Know What Cathay General Bancorp's (NASDAQ:CATY) P/E Ratio Means?

To keep it practical, we'll show how Cathay General Bancorp's (NASDAQ:CATY) P/E ratio could help you assess the value on offer. … Based on the last twelve months, Cathay General Bancorp's P/E ratio is 13.47. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Why Fundamental Investors Might Love Cathay General Bancorp (NASDAQ:CATY)

Cathay General Bancorp (NASDAQ:CATY) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … , dividend-paying company with a

Simply Wall St -

What Is Cathay General Bancorp's (NASDAQ:CATY) Share Price Doing?

Cathay General Bancorp (NASDAQ:CATY), operating in the financial services industry based in United States,. … A question to answer is whether Cathay General Bancorp's current trading price of $35.77 reflective of the actual value of the? … Let’s take a look at Cathay General Bancorp’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Is Cathay General Bancorp (NASDAQ:CATY) Expensive For A Reason? A Look At The Intrinsic Value

Valuing CATY, a bank stock, can be daunting since these financial companies have cash flows that are impacted by regulations that are not imposed upon other industries. … For example, banks are required to hold more capital to reduce the risk to depositors.

Simply Wall St -

Cathay General Bancorp (NASDAQ:CATY): Ex-Dividend Is In 2 Days, Should You Buy?

Have you been keeping an eye on Cathay General Bancorp's (NASDAQ:CATY) upcoming dividend of US$0.24 per share payable on the 14 September 2018? … Below, I will explain how holding Cathay General Bancorp can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … Check out our latest analysis for Cathay General Bancorp?

Simply Wall St -

Company Info

Description

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. The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. It also provides loan products, such as commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, as well as installment loans to individuals for automobile, household, and other consumer expenditures. In addition, the company offers letter of credit, wire transfer, forward currency spot and forward contract, traveler’s check, safe deposit, night deposit, social security payment deposit, collection, bank-by-mail, drive-up and walk-up window, automatic teller machine, Internet banking, trade financing, and other customary bank services, as well as securities and insurance products. As of December 31, 2018, it operated 26 branches in Southern California; 14 branches in Northern California; 11 branches in New York; 3 branches in Illinois area; 4 branches in Washington; 2 branches in Texas; and 1 each branch in Maryland, Massachusetts, Nevada, New Jersey, and Hong Kong, as well as 1 representative office in Taipei and Shanghai. The company was founded in 1962 and is headquartered in Los Angeles, California.

Details
Name: Cathay General Bancorp
CATY
Exchange: NasdaqGS
Founded: 1962
$2,908,352,599
80,385,644
Website: http://www.cathaybank.com
Address: Cathay General Bancorp
777 North Broadway,
Los Angeles,
California, 90012,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CATY Common Stock Nasdaq Global Select US USD 14. Dec 1990
DB CN7 Common Stock Deutsche Boerse AG DE EUR 14. Dec 1990
Number of employees
Current staff
Staff numbers
1,277
Cathay General Bancorp employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:29
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.