CATO Stock Overview
The Cato Corporation, together with its subsidiaries, operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$12.14|
|52 Week High||US$19.89|
|52 Week Low||US$10.93|
|1 Month Change||-6.97%|
|3 Month Change||-18.74%|
|1 Year Change||-29.13%|
|3 Year Change||-1.46%|
|5 Year Change||-30.98%|
|Change since IPO||709.33%|
Recent News & Updates
The Cato Corporation: A Cheap Prospect That Bears Some Long-Term Risk
The Cato Corporation has had a mixed operating history in recent years, with a general decline in store count affecting the firm. Even so, shares are very cheap at this point in time, and some upside could be had. But only investors who are comfortable with elevated risk should consider this a valid prospect right now.
|CATO||US Specialty Retail||US Market|
Return vs Industry: CATO matched the US Specialty Retail industry which returned -28.8% over the past year.
Return vs Market: CATO underperformed the US Market which returned -20.5% over the past year.
|CATO Average Weekly Movement||5.6%|
|Specialty Retail Industry Average Movement||8.7%|
|Market Average Movement||8.0%|
|10% most volatile stocks in US Market||16.6%|
|10% least volatile stocks in US Market||3.1%|
Stable Share Price: CATO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: CATO's weekly volatility (6%) has been stable over the past year.
About the Company
|1946||7,500||John P. Cato||https://www.catofashions.com|
The Cato Corporation, together with its subsidiaries, operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. It operates through two segments, Retail and Credit. The company’s stores and e-commerce websites offer a range of apparel and accessories, including dressy, career, and casual sportswear; and dresses, coats, shoes, lingerie, costume jewelry, and handbags, as well as men’s wear, and lines for kids and infants.
Cato Fundamentals Summary
|CATO fundamental statistics|
Is CATO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CATO income statement (TTM)|
|Cost of Revenue||US$461.63m|
Last Reported Earnings
Apr 30, 2022
Next Earnings Date
|Earnings per share (EPS)||1.23|
|Net Profit Margin||3.19%|
How did CATO perform over the long term?See historical performance and comparison
5.6%Current Dividend Yield
Is CATO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CATO?
Other financial metrics that can be useful for relative valuation.
|What is CATO's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does CATO's PE Ratio compare to its peers?
|CATO PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
Price-To-Earnings vs Peers: CATO is good value based on its Price-To-Earnings Ratio (9.9x) compared to the peer average (13.2x).
Price to Earnings Ratio vs Industry
How does CATO's PE Ratio compare vs other companies in the U.S. Specialty Retail Industry?
Price-To-Earnings vs Industry: CATO is expensive based on its Price-To-Earnings Ratio (9.9x) compared to the US Specialty Retail industry average (6.1x)
Price to Earnings Ratio vs Fair Ratio
What is CATO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||9.9x|
|Fair PE Ratio||n/a|
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CATO's Price-To-Earnings Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of CATO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CATO ($12.14) is trading below our estimate of fair value ($12.65)
Significantly Below Fair Value: CATO is trading below fair value, but not by a significant amount.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CATO's PEG Ratio to determine if it is good value.
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How is Cato forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted Retail industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cato has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
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How has Cato performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CATO has high quality earnings.
Growing Profit Margin: CATO's current net profit margins (3.2%) are higher than last year (0.2%).
Past Earnings Growth Analysis
Earnings Trend: CATO's earnings have declined by 10.6% per year over the past 5 years.
Accelerating Growth: CATO's earnings growth over the past year (2018.8%) exceeds its 5-year average (-10.6% per year).
Earnings vs Industry: CATO earnings growth over the past year (2018.8%) exceeded the Specialty Retail industry 40.8%.
Return on Equity
High ROE: CATO's Return on Equity (10.3%) is considered low.
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How is Cato's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: CATO's short term assets ($343.5M) exceed its short term liabilities ($235.7M).
Long Term Liabilities: CATO's short term assets ($343.5M) exceed its long term liabilities ($125.6M).
Debt to Equity History and Analysis
Debt Level: CATO is debt free.
Reducing Debt: CATO has not had any debt for past 5 years.
Debt Coverage: CATO has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: CATO has no debt, therefore coverage of interest payments is not a concern.
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What is Cato current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CATO's dividend (5.6%) is higher than the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: CATO's dividend (5.6%) is in the top 25% of dividend payers in the US market (4.34%)
Stability and Growth of Payments
Stable Dividend: CATO's dividend payments have been volatile in the past 10 years.
Growing Dividend: CATO's dividend payments have fallen over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (52.9%), CATO's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (206%), CATO's dividend payments are not well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John P. Cato (71 yo)
Mr. John P. Derham Cato has been the Chairman of The Cato Corporation since January 2004 and also has been its President and Chief Executive Officer since June 1997 and May 1999 respectively. From May 1999...
CEO Compensation Analysis
Compensation vs Market: John P.'s total compensation ($USD5.47M) is above average for companies of similar size in the US market ($USD1.73M).
Compensation vs Earnings: John P.'s compensation has increased by more than 20% in the past year.
Experienced Management: CATO's management team is seasoned and experienced (12.2 years average tenure).
Experienced Board: CATO's board of directors are seasoned and experienced ( 13 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Cato Corporation's employee growth, exchange listings and data sources
- Name: The Cato Corporation
- Ticker: CATO
- Exchange: NYSE
- Founded: 1946
- Industry: Apparel Retail
- Sector: Retail
- Implied Market Cap: US$238.482m
- Shares outstanding: 19.79m
- Website: https://www.catofashions.com
Number of Employees
- The Cato Corporation
- 8100 Denmark Road
- North Carolina
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/24 00:00|
|End of Day Share Price||2022/06/24 00:00|
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.