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 average 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

CATY

-1.0%

US Banks

0.7%

US Market


1 Year Return

-5.6%

CATY

8.9%

US Banks

12.9%

US Market

Return vs Industry: CATY underperformed the US Banks industry which returned 8.9% over the past year.

Return vs Market: CATY underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

CATYIndustryMarket
7 Day-0.9%-1.0%0.7%
30 Day4.0%6.9%4.4%
90 Day8.4%16.7%7.0%
1 Year-2.3%-5.6%12.2%8.9%15.4%12.9%
3 Year11.9%3.3%39.2%29.5%49.1%39.5%
5 Year62.5%44.1%72.7%53.6%62.7%44.7%

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?

37.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CATY ($36.78) is trading below our estimate of fair value ($58.59)

Significantly Below Fair Value: CATY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CATY is good value based on its PE Ratio (10.7x) compared to the Banks industry average (12.7x).

PE vs Market: CATY is good value based on its PE Ratio (10.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CATY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CATY is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CATY's earnings are forecast to decline over the next 3 years (-1.7% per year).

Earnings vs Market: CATY's earnings are forecast to decline over the next 3 years (-1.7% per year).

High Growth Earnings: CATY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CATY's revenue (2.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CATY's revenue (2.4% 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 (12%).


Next Steps

Past Performance

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

14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CATY has a high level of non-cash earnings.

Growing Profit Margin: CATY's current net profit margins (43.8%) are higher than last year (39.6%).


Past Earnings Growth Analysis

Earnings Trend: CATY's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: CATY's earnings growth over the past year (18.5%) exceeds its 5-year average (14.8% per year).

Earnings vs Industry: CATY earnings growth over the past year (18.5%) underperformed the Banks industry 27.5%.


Return on Equity

High ROE: CATY's Return on Equity (12.3%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: CATY has a low level of unsold assets or inventory.

Debt Coverage by Assets: CATY's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: CATY's level of assets compared to its equity is low.

Allowance for Bad Loans: CATY has a sufficient allowance for bad loans.

Low Risk Liabilities: CATY's liabilities are made up of primarily low risk sources of funding.

Loan Level: CATY has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CATY's loans are broadly funded by customer deposits.

Level of Bad Loans: CATY has an appropriate level of bad loans (0.33%)


Next Steps

Dividend

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

3.37%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: CATY's dividend (3.37%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: CATY's dividend (3.37%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

Stable Dividend: CATY's dividend payments have been volatile 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 low payout ratio (9%), CATY's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CATY's dividends in 3 years are forecast to be well covered by earnings (39.5% payout ratio).


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?

10.2yrs

Average management tenure


CEO

Pin Tai (65yo)

3.1yrs

Tenure

US$2,274,424

Compensation

Mr. Pin Tai has been the Chief Executive Officer of Cathay General Bancorp since October 2016 and served as its President since October 2016 until 2019. He serves as Chief Executive Officer of Cathay Bank  ...


CEO Compensation Analysis

Compensation vs Market: Pin's total compensation ($USD2.27M) is below average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Pin's compensation has been consistent with company performance over the past year.


Management Age and Tenure

10.2yrs

Average Tenure

65yo

Average Age

Experienced Management: CATY's management team is seasoned and experienced (10.2 years average tenure).


Board Age and Tenure

16.1yrs

Average Tenure

71yo

Average Age

Experienced Board: CATY's board of directors are seasoned and experienced ( 16.1 years average tenure).


Insider Trading

Insider Buying: CATY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$185,65015 Nov 19
Jane Jelenko
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$37.13
SellUS$55,67507 Nov 19
Lisa Kim
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares1,500
Max PriceUS$37.12
SellUS$332,71307 Nov 19
Irwin Wong
EntityIndividual
Role
Senior Key Executive
Senior Executive VP & Chief Administrative Officer of Cathay Bank
Shares8,968
Max PriceUS$37.10
SellUS$365,85006 Nov 19
Anthony Tang
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares10,000
Max PriceUS$36.59
SellUS$129,95212 Sep 19
Lisa Kim
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares3,745
Max PriceUS$34.70
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
Independent 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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Heng Chen (66yo)

    Executive VP

    • Tenure: 16.4yrs
    • Compensation: US$1.17m
  • Dunson Cheng (74yo)

    Executive Chairman of the Board

    • Tenure: 25.8yrs
    • Compensation: US$2.20m
  • Irwin Wong (70yo)

    Senior Executive VP & Chief Administrative Officer of Cathay Bank

    • Tenure: 20.8yrs
    • Compensation: US$1.17m
  • Kim Bingham (62yo)

    Executive VP & Chief Risk Officer of Cathay Bank

    • Tenure: 15.3yrs
    • Compensation: US$813.89k
  • Mark Lee (56yo)

    Executive VP & Chief Credit Officer of Cathay Bank

    • Tenure: 1.9yrs
  • Pin Tai (65yo)

    CEO & Director

    • Tenure: 3.1yrs
    • Compensation: US$2.27m
  • Lisa Kim (54yo)

    Executive VP

    • Tenure: 5.2yrs
  • Georgia Lo

    Assistant Secretary

    • Tenure: 0yrs

Board Members

  • Peter Wu (70yo)

    Vice Chairman of the Board

    • Tenure: 16.1yrs
    • Compensation: US$388.38k
  • Dunson Cheng (74yo)

    Executive Chairman of the Board

    • Tenure: 25.8yrs
    • Compensation: US$2.20m
  • Tony Tang (65yo)

    Vice Chairman of the Board

    • Tenure: 6.1yrs
    • Compensation: US$369.72k
  • Ting Liu (82yo)

    Independent Director

    • Tenure: 16.1yrs
    • Compensation: US$171.98k
  • Joseph C. Poon (72yo)

    Independent Director

    • Tenure: 29.8yrs
    • Compensation: US$167.73k
  • Kelly Chan (72yo)

    Independent Director

    • Tenure: 29.8yrs
    • Compensation: US$174.73k
  • Michael M. Chang (82yo)

    Independent Director

    • Tenure: 29.8yrs
    • Compensation: US$181.48k
  • Nelson Chung (66yo)

    Lead Director

    • Tenure: 2.5yrs
    • Compensation: US$155.73k
  • Jane Jelenko (70yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$178.73k
  • Pin Tai (65yo)

    CEO & Director

    • Tenure: 3.1yrs
    • 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$2.932b
  • Shares outstanding: 79.71m
  • 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 Analysis2019/11/16 23:33
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
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.