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Cathay General Bancorp

Market Cap

US$3.3b

Last Updated

2021/04/17 22:09 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 +/- 5% a week.

Volatility Over Time: CATY's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

CATY

0.03%

US Banks

1.3%

US Market


1 Year Return

76.1%

CATY

70.2%

US Banks

53.9%

US Market

Return vs Industry: CATY exceeded the US Banks industry which returned 70.3% over the past year.

Return vs Market: CATY exceeded the US Market which returned 53.9% over the past year.


Shareholder returns

CATYIndustryMarket
7 Day-0.3%0.03%1.3%
30 Day-5.1%-0.6%5.3%
90 Day12.8%16.6%8.9%
1 Year83.7%76.1%75.9%70.2%56.6%53.9%
3 Year14.3%2.9%26.0%15.0%64.4%53.6%
5 Year53.6%32.1%97.1%72.0%120.4%95.7%

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?

37.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CATY ($41.27) is trading below our estimate of fair value ($66.34)

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 (14.4x) compared to the US Banks industry average (13.3x).

PE vs Market: CATY is good value based on its PE Ratio (14.4x) compared to the US market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: CATY is poor value based on its PEG Ratio (1.7x)


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).


Future Growth

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

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CATY's forecast earnings growth (8.4% per year) is above the savings rate (2%).

Earnings vs Market: CATY's earnings (8.4% per year) are forecast to grow slower than the US market (18.1% per year).

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

Revenue vs Market: CATY's revenue (8.6% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: CATY's revenue (8.6% 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 (11.3%).


Past Performance

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

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CATY has high quality earnings.

Growing Profit Margin: CATY's current net profit margins (42.6%) are lower than last year (44.5%).


Past Earnings Growth Analysis

Earnings Trend: CATY's earnings have grown by 10.4% 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 (-17.9%) over the past year, making it difficult to compare to the Banks industry average (2.9%).


Return on Equity

High ROE: CATY's Return on Equity (9.5%) 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 (229%).

Low Risk Liabilities: 97% 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 (96%) is appropriate.

Level of Bad Loans: CATY has an appropriate level of bad loans (0.5%).


Dividend

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

3.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CATY's dividend (3%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: CATY's dividend (3%) is low compared to the top 25% of dividend payers in the US market (3.46%).


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 (43.1%), 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 (32.1% payout ratio).


Next Steps

Management

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

8.8yrs

Average board tenure


CEO

Chang Liu (53 yo)

0.50

Tenure

US$1,083,879

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 ($USD1.08M) is below average for companies of similar size in the US market ($USD5.13M).

Compensation vs Earnings: Insufficient data to compare Chang's compensation with company performance.


Board Members

Experienced Board: CATY's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CATY insiders have only sold shares 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$3.284b
  • Shares outstanding: 79.60m
  • 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 Analysis2021/04/17 22:09
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
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.