Cathay General Bancorp
Market Cap
US$3.3b
Last Updated
2021/02/25 00:20 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
Rewards
Risk Analysis
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
8.4%
CATY
6.3%
US Banks
-1.4%
US Market
1 Year Return
22.3%
CATY
16.5%
US Banks
37.1%
US Market
Return vs Industry: CATY exceeded the US Banks industry which returned 12.4% over the past year.
Return vs Market: CATY underperformed the US Market which returned 34.1% over the past year.
Shareholder returns
| CATY | Industry | Market | |
|---|---|---|---|
| 7 Day | 8.4% | 6.3% | -1.4% |
| 30 Day | 12.1% | 16.0% | 1.6% |
| 90 Day | 33.0% | 27.2% | 7.3% |
| 1 Year | 27.7%22.3% | 20.8%16.5% | 40.2%37.1% |
| 3 Year | 9.8%-0.4% | 16.4%6.5% | 62.5%52.1% |
| 5 Year | 67.8%45.4% | 104.0%78.2% | 133.9%108.0% |
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
3 days ago | Simply Wall St
There's A Lot To Like About Cathay General Bancorp's (NASDAQ:CATY) Upcoming US$0.31 Dividend1 week ago | Simply Wall St
Have Cathay General Bancorp (NASDAQ:CATY) Insiders Been Selling Their Stock?1 month ago | Simply Wall St
Here's What Cathay General Bancorp's (NASDAQ:CATY) Shareholder Ownership Structure Looks LikeValuation
Is Cathay General Bancorp undervalued compared to its fair value and its price relative to the market?
40.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CATY ($40.9) is trading below our estimate of fair value ($68.16)
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 (14.2x) compared to the US Banks industry average (12.4x).
PE vs Market: CATY is good value based on its PE Ratio (14.2x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: CATY is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: CATY is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1x).
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Future Growth
How is Cathay General Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
7.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CATY's forecast earnings growth (7.8% per year) is above the savings rate (2%).
Earnings vs Market: CATY's earnings (7.8% per year) are forecast to grow slower than the US market (20.4% per year).
High Growth Earnings: CATY's earnings are forecast to grow, but not significantly.
Revenue vs Market: CATY's revenue (8.1% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: CATY's revenue (8.1% 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%).
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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 (44.9%).
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 (0.5%).
Return on Equity
High ROE: CATY's Return on Equity (9.5%) is considered low.
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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%).
Next Steps
Dividend
What is Cathay General Bancorp current dividend yield, its reliability and sustainability?
3.03%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CATY's dividend (3.03%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: CATY's dividend (3.03%) is low compared to the top 25% of dividend payers in the US market (3.75%).
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 (36.9% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
8.6yrs
Average board tenure
CEO
Chang Liu (53 yo)
0.33
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 ($USD4.96M).
Compensation vs Earnings: Insufficient data to compare Chang's compensation with company performance.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 27.08yrs | US$3.02m | 0.96% $ 31.3m | |
| CEO, President & Director | 0.33yr | US$1.08m | 0.0053% $ 173.0k | |
| Vice Chairman of the Board | 17.33yrs | US$393.97k | 1.01% $ 32.8m | |
| Vice Chairman of the Board | 7.33yrs | US$378.97k | 1.22% $ 39.7m | |
| Independent Director | 31.08yrs | US$174.72k | 0.082% $ 2.7m | |
| Independent Director | 31.08yrs | US$183.97k | 0.31% $ 10.1m | |
| Independent Director | 31.08yrs | US$189.97k | 0.31% $ 10.0m | |
| Lead Independent Director | 3.75yrs | US$158.97k | 0.046% $ 1.5m | |
| Independent Director | 8.08yrs | US$186.22k | 0.016% $ 532.3k | |
| Independent Director | 9.08yrs | US$176.72k | 0.0066% $ 213.6k | |
| Independent Director | 3.75yrs | US$178.72k | 0.045% $ 1.5m | |
| Independent Director | 0.75yr | no data | 0.00025% $ 8.1k |
8.6yrs
Average Tenure
71yo
Average Age
Experienced Board: CATY's board of directors are considered experienced (8.6 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$3.252b
- Shares outstanding: 79.51m
- Website: https://www.cathaygeneralbancorp.com
Number of Employees
Location
- Cathay General Bancorp
- 777 North Broadway
- Los Angeles
- California
- 90012
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CATY | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Dec 1990 |
| CN7 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/25 00:20 |
| End of Day Share Price | 2021/02/24 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.