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Cato NYSE:CATO Stock Report

Last Price


Market Cap







24 Jun, 2022


Company Financials
CATO fundamental analysis
Snowflake Score
Future Growth0/6
Past Performance4/6
Financial Health6/6

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.

Cato Competitors













Price History & Performance

Summary of all time highs, changes and price drops for Cato
Historical stock prices
Current Share PriceUS$12.14
52 Week HighUS$19.89
52 Week LowUS$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 IPO709.33%

Recent News & Updates

Jun 20

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.

Shareholder Returns

CATOUS Specialty RetailUS 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.

Price Volatility

Is CATO's price volatile compared to industry and market?
CATO volatility
CATO Average Weekly Movement5.6%
Specialty Retail Industry Average Movement8.7%
Market Average Movement8.0%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

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

19467,500John P. Cato

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

How do Cato's earnings and revenue compare to its market cap?
CATO fundamental statistics
Market CapUS$238.48m
Earnings (TTM)US$24.34m
Revenue (TTM)US$762.91m


P/E Ratio


P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CATO income statement (TTM)
Cost of RevenueUS$461.63m
Gross ProfitUS$299.83m
Other ExpensesUS$275.49m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date


Earnings per share (EPS)1.23
Gross Margin39.30%
Net Profit Margin3.19%
Debt/Equity Ratio0%

How did CATO perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio
We’ve recently updated our valuation analysis.


Is CATO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score


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

  • PEG Ratio

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.

CATO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.3x
Enterprise Value/EBITDA7.2x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does CATO's PE Ratio compare to its peers?

CATO PE Ratio vs Peers
The above table shows the PE ratio for CATO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.2x

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.

CATO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.9x
Fair PE Ration/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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Future Growth

How is Cato forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score


Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


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.

Discover growth companies

  • Check out Cato's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
  • Cato competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Cato performed over the past 5 years?

Past Performance Score


Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


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.

Discover strong past performing companies

Financial Health

How is Cato's financial position?

Financial Health Score


Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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.

Balance Sheet

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What is Cato current dividend yield, its reliability and sustainability?

Dividend Score


Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • 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.

Discover strong dividend paying companies


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.

Leadership Team

Experienced Management: CATO's management team is seasoned and experienced (12.2 years average tenure).

Board Members

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

Ownership Breakdown

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

Top Shareholders

Company Information

The Cato Corporation's employee growth, exchange listings and data sources

Key Information

  • 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:

Number of Employees


  • The Cato Corporation
  • 8100 Denmark Road
  • Charlotte
  • North Carolina
  • 28273-5975
  • United States


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Annual Earnings2022/01/29

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.