Market Cap
US$247.7m
Last Updated
2021/01/23 23:15 UTC
Data Sources
Company Financials
Executive Summary
The Cato Corporation, together with its subsidiaries, operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. More Details
Snowflake Analysis
Flawless balance sheet and overvalued.
Similar Companies
Share Price & News
How has Cato's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CATO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: CATO's weekly volatility (9%) has been stable over the past year.
Market Performance
7 Day Return
0.2%
CATO
0.03%
US Specialty Retail
2.3%
US Market
1 Year Return
-28.5%
CATO
35.8%
US Specialty Retail
23.8%
US Market
Return vs Industry: CATO underperformed the US Specialty Retail industry which returned 35.7% over the past year.
Return vs Market: CATO underperformed the US Market which returned 23.7% over the past year.
Shareholder returns
| CATO | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.2% | 0.03% | 2.3% |
| 30 Day | 37.9% | 6.3% | 4.8% |
| 90 Day | 62.0% | 15.2% | 14.5% |
| 1 Year | -26.7%-28.5% | 37.1%35.8% | 26.6%23.8% |
| 3 Year | 7.1%-11.4% | 72.6%65.4% | 45.0%35.4% |
| 5 Year | -62.0%-72.0% | 112.2%96.4% | 126.2%101.0% |
Long-Term Price Volatility Vs. Market
How volatile is Cato's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
What You Need To Know About The Cato Corporation's (NYSE:CATO) Investor Composition2 months ago | Simply Wall St
What Did Cato's (NYSE:CATO) CEO Take Home Last Year?3 months ago | Simply Wall St
What Type Of Returns Would Cato's(NYSE:CATO) Shareholders Have Earned If They Purchased Their SharesFive Years Ago?Valuation
Is Cato undervalued compared to its fair value and its price relative to the market?
0.97x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate CATO's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate CATO's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: CATO is unprofitable, so we can't compare its PE Ratio to the US Specialty Retail industry average.
PE vs Market: CATO is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CATO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CATO is good value based on its PB Ratio (1x) compared to the US Specialty Retail industry average (3x).
Next Steps
Future Growth
How is Cato forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
28.0%
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.
Next Steps
- Examine Cato's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Cato competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Retail industry.
Past Performance
How has Cato performed over the past 5 years?
-45.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CATO is currently unprofitable.
Growing Profit Margin: CATO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CATO is unprofitable, and losses have increased over the past 5 years at a rate of 45% per year.
Accelerating Growth: Unable to compare CATO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CATO is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (15.3%).
Return on Equity
High ROE: CATO has a negative Return on Equity (-16.56%), as it is currently unprofitable.
Next Steps
Financial Health
How is Cato's financial position?
Financial Position Analysis
Short Term Liabilities: CATO's short term assets ($294.5M) exceed its short term liabilities ($176.7M).
Long Term Liabilities: CATO's short term assets ($294.5M) exceed its long term liabilities ($158.0M).
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
Next Steps
Dividend
What is Cato current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CATO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CATO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CATO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CATO's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: CATO is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CATO's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
12.3yrs
Average management tenure
CEO
John Derham Cato (70 yo)
21.67yrs
Tenure
US$5,271,448
Compensation
Mr. John P. Derham Cato has been the Chairman of The Cato Corporation since January 2004 and also has been its President and Chief Executive Officer since June 1997 and May 1999 respectively. From May 1999...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD5.27M) is above average for companies of similar size in the US market ($USD994.97K).
Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 21.67yrs | US$5.27m | 11.76% $ 29.1m | |
| Executive VP & CFO | 12.33yrs | US$1.15m | 0.57% $ 1.4m | |
| Executive VP & Director of Stores(Leave of Absence) | 16.92yrs | US$957.70k | 0.36% $ 902.9k | |
| Executive VP and Chief Real Estate & Store Development Officer | 9.5yrs | US$873.93k | 0.30% $ 749.6k | |
| VP & General Counsel | no data | no data | no data | |
| Senior Vice President of Sourcing & MDSE Support | no data | no data | 0.30% $ 746.4k | |
| Senior Vice President of GMM - Fashion Division | no data | no data | 0.34% $ 839.5k | |
| Secretary | no data | no data | no data | |
| Senior VP & Controller | 12yrs | no data | 0.11% $ 267.8k | |
| Assistant Secretary | no data | no data | 0.073% $ 181.8k |
12.3yrs
Average Tenure
60.5yo
Average Age
Experienced Management: CATO's management team is seasoned and experienced (12.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 21.67yrs | US$5.27m | 11.76% $ 29.1m | |
| Independent Director | 2.75yrs | US$107.58k | 0.044% $ 108.6k | |
| Independent Director | 11.67yrs | US$123.08k | 0.11% $ 263.1k | |
| Lead Independent Director | no data | US$123.08k | 0.093% $ 231.4k | |
| Independent Director | 15.92yrs | US$112.58k | 0.15% $ 380.0k | |
| Independent Director | 9.67yrs | US$115.08k | 0.11% $ 274.3k | |
| Independent Director | 11.67yrs | US$128.08k | 0.10% $ 251.8k | |
| Independent Director | 1.67yrs | US$87.58k | 0.027% $ 67.5k |
11.7yrs
Average Tenure
63.5yo
Average Age
Experienced Board: CATO's board of directors are seasoned and experienced ( 11.7 years average tenure).
Ownership
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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
The Cato Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Cato Corporation
- Ticker: CATO
- Exchange: NYSE
- Founded: 1946
- Industry: Apparel Retail
- Sector: Retail
- Market Cap: US$247.691m
- Shares outstanding: 21.90m
- Website: https://www.catofashions.com
Number of Employees
Location
- The Cato Corporation
- 8100 Denmark Road
- Charlotte
- North Carolina
- 28273
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CATO | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Apr 1987 |
| CO2A | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Apr 1987 |
Biography
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, Reta...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/23 23:15 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/10/31 |
| Annual Earnings | 2020/02/01 |
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.