Is Cato Stock a Good Investment?
Cato Investment Advice | CATO |
- Examine Cato's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Cato's leadership team and their track record. Good management can help Cato navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Specialty Retail space and any emerging trends that could impact Cato's business and its evolving consumer preferences.
- Compare Cato's performance and market position to its competitors. Analyze how Cato is positioned in terms of product offerings, innovation, and market share.
- Check if Cato pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Cato's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Cato Corporation stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Cato Corporation is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Sell | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Cato Stock
Researching Cato's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 43.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.41. Some equities with similar Price to Book (P/B) outperform the market in the long run. Cato has Price/Earnings To Growth (PEG) ratio of 1.54. The entity recorded a loss per share of 0.89. The firm last dividend was issued on the 16th of September 2024. Cato had 3:2 split on the 28th of June 2005.
To determine if Cato is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Cato's research are outlined below:
| Cato generated a negative expected return over the last 90 days | |
| Cato has high historical volatility and very poor performance | |
| The company reported the previous year's revenue of 708.06 M. Net Loss for the year was (23.94 M) with profit before overhead, payroll, taxes, and interest of 314.77 M. | |
| Latest headline from simplywall.st: Cato Full Year 2025 Earnings US0.97 loss per share |
Cato uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Cato Corporation. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Cato's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 21st of March 2024 Upcoming Quarterly Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View |
Earnings surprises can significantly impact Cato's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Cato's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2009-11-19 | 2009-10-31 | 0.09 | 0.1 | 0.01 | 11 | ||
2008-03-20 | 2008-01-31 | -0.07 | -0.06 | 0.01 | 14 | ||
2007-11-29 | 2007-10-31 | 0.08 | 0.09 | 0.01 | 12 | ||
1999-03-16 | 1999-01-31 | 0.1 | 0.11 | 0.01 | 10 | ||
1996-11-19 | 1996-10-31 | -0.01 | -0.02 | -0.01 | 100 | ||
1996-08-20 | 1996-07-31 | 0.06 | 0.05 | -0.01 | 16 | ||
1996-03-19 | 1996-01-31 | 0.06 | 0.07 | 0.01 | 16 | ||
2009-03-19 | 2009-01-31 | 0.11 | 0.13 | 0.02 | 18 |
Know Cato's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Cato is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Cato Corporation backward and forwards among themselves. Cato's institutional investor refers to the entity that pools money to purchase Cato's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Prescott Group Capital Management Llc | 2024-12-31 | 146 K | Bridgeway Capital Management, Llc | 2024-12-31 | 142.9 K | Connor Clark & Lunn Inv Mgmt Ltd | 2024-12-31 | 107.1 K | Two Sigma Advisers, Llc | 2024-12-31 | 106.5 K | Yacktman Asset Management Co | 2024-12-31 | 105.4 K | Gsa Capital Partners Llp | 2024-12-31 | 104.3 K | Two Sigma Investments Llc | 2024-12-31 | 101 K | American Century Companies Inc | 2024-12-31 | 95.8 K | Marquette Asset Management Inc. | 2024-12-31 | 83.8 K | Aldebaran Capital Llc | 2024-12-31 | 1.1 M | Dimensional Fund Advisors, Inc. | 2024-12-31 | 889.6 K |
Cato's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 127.11 M.Market Cap |
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Cato's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.10 | 0.07 | |
| Return On Capital Employed | 0.21 | 0.22 | |
| Return On Assets | 0.10 | 0.07 | |
| Return On Equity | 0.16 | 0.17 |
Determining Cato's profitability involves analyzing its financial statements and using various financial metrics to determine if Cato is a good buy. For example, gross profit margin measures Cato's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Cato's profitability and make more informed investment decisions.
Evaluate Cato's management efficiency
Cato has return on total asset (ROA) of (0.0271) % which means that it has lost $0.0271 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.0876) %, meaning that it created substantial loss on money invested by shareholders. Cato's management efficiency ratios could be used to measure how well Cato manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Cato's Return On Capital Employed is very stable compared to the past year. As of the 23rd of March 2025, Return On Equity is likely to grow to 0.17, while Return On Tangible Assets are likely to drop 0.07. At this time, Cato's Non Current Assets Total are very stable compared to the past year. As of the 23rd of March 2025, Total Current Assets is likely to grow to about 281.6 M, while Total Assets are likely to drop about 412.8 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 13.78 | 14.46 | |
| Tangible Book Value Per Share | 13.85 | 14.55 | |
| Enterprise Value Over EBITDA | 9.77 | 6.19 | |
| Price Book Value Ratio | 3.08 | 2.37 | |
| Enterprise Value Multiple | 9.77 | 6.19 | |
| Price Fair Value | 3.08 | 2.37 | |
| Enterprise Value | 1.1 B | 1.1 B |
Understanding the operational decisions made by Cato management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.
Basic technical analysis of Cato Stock
As of the 23rd of March, Cato shows the Mean Deviation of 2.82, downside deviation of 3.08, and Risk Adjusted Performance of 0.0394. Cato technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Cato's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Cato insiders, such as employees or executives, is commonly permitted as long as it does not rely on Cato's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Cato insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Cato's Outstanding Corporate Bonds
Cato issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Cato uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Cato bonds can be classified according to their maturity, which is the date when Cato Corporation has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Cato's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Cato's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0394 | |||
| Market Risk Adjusted Performance | 0.657 | |||
| Mean Deviation | 2.82 | |||
| Semi Deviation | 2.93 | |||
| Downside Deviation | 3.08 | |||
| Coefficient Of Variation | 2780.85 | |||
| Standard Deviation | 3.55 | |||
| Variance | 12.6 | |||
| Information Ratio | 0.0521 | |||
| Jensen Alpha | 0.1299 | |||
| Total Risk Alpha | 0.3872 | |||
| Sortino Ratio | 0.06 | |||
| Treynor Ratio | 0.647 | |||
| Maximum Drawdown | 16.95 | |||
| Value At Risk | (4.26) | |||
| Potential Upside | 7.36 | |||
| Downside Variance | 9.5 | |||
| Semi Variance | 8.57 | |||
| Expected Short fall | (3.34) | |||
| Skewness | 0.5659 | |||
| Kurtosis | 0.097 |
| Risk Adjusted Performance | 0.0394 | |||
| Market Risk Adjusted Performance | 0.657 | |||
| Mean Deviation | 2.82 | |||
| Semi Deviation | 2.93 | |||
| Downside Deviation | 3.08 | |||
| Coefficient Of Variation | 2780.85 | |||
| Standard Deviation | 3.55 | |||
| Variance | 12.6 | |||
| Information Ratio | 0.0521 | |||
| Jensen Alpha | 0.1299 | |||
| Total Risk Alpha | 0.3872 | |||
| Sortino Ratio | 0.06 | |||
| Treynor Ratio | 0.647 | |||
| Maximum Drawdown | 16.95 | |||
| Value At Risk | (4.26) | |||
| Potential Upside | 7.36 | |||
| Downside Variance | 9.5 | |||
| Semi Variance | 8.57 | |||
| Expected Short fall | (3.34) | |||
| Skewness | 0.5659 | |||
| Kurtosis | 0.097 |
Consider Cato's intraday indicators
Cato intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Cato stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Cato Corporate Filings
8K | 19th of March 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 18th of March 2025 Other Reports | ViewVerify | |
| 7th of February 2025 Other Reports | ViewVerify | |
10Q | 26th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Cato Stock media impact
Far too much social signal, news, headlines, and media speculation about Cato that are available to investors today. That information is available publicly through Cato media outlets and privately through word of mouth or via Cato internal channels. However, regardless of the origin, that massive amount of Cato data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Cato news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Cato relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Cato's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Cato alpha.
Cato Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Cato can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
CATO REPORTS 1Q EARNINGS
recently @ finance.yahoo.com
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Cato Corporate Directors
| Thomas Henson | Independent Director | Profile | |
| Daniel Stowe | Independent Director | Profile | |
| Pamela Davies | Independent Director | Profile | |
| Bailey Patrick | Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cato Corporation. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Is Specialty Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cato. If investors know Cato will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cato listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.90) | Dividend Share 0.68 | Earnings Share (0.89) | Revenue Per Share | Quarterly Revenue Growth (0.08) |
The market value of Cato is measured differently than its book value, which is the value of Cato that is recorded on the company's balance sheet. Investors also form their own opinion of Cato's value that differs from its market value or its book value, called intrinsic value, which is Cato's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cato's market value can be influenced by many factors that don't directly affect Cato's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Cato's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Cato is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cato's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.