CATY:NSD-Cathay General Bancorp (USD)

COMMON STOCK | Banks—Regional | NSD

Last Closing Price

USD 21.29

Change

+0.15 (+0.71)%

Market Cap

USD 1.66B

Volume

0.27M

Average Target Price

USD 27.00 (+26.82%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

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. The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. It also provides loan products, such as commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, as well as installment loans to individuals for automobile, household, and other consumer expenditures. In addition, the company offers trade financing, letter of credit, wire transfer, forward currency spot and forward contract, traveler's check, safe deposit, night deposit, social security payment deposit, collection, bank-by-mail, drive-up and walk-up window, automatic teller machine, Internet banking, and other customary bank services, as well as securities and insurance products. As of December 31, 2019, it operated 25 branches in Southern California; 13 branches in Northern California; 10 branches in New York; 3 branches in Illinois area; 4 branches in Washington; 2 branches in Texas; and 1 each branch in Maryland, Massachusetts, Nevada, New Jersey, and Hong Kong, as well as 1 representative office in Beijing, Taipei, and Shanghai. The company was founded in 1962 and is headquartered in Los Angeles, California.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-09-25 )

Largest Industry Peers for Banks—Regional

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
HBANN Huntington Bancshares Incorpor..

+0.17 (+0.64%)

USD28.78B 6.16 N/A
FITB Fifth Third Bancorp

+0.86 (+4.39%)

USD13.93B 11.27 N/A
HBANO Huntington Bancshares Incorpor..

+0.04 (+0.16%)

USD13.31B 17.76 N/A
SIVB SVB Financial Group

+4.08 (+1.81%)

USD11.93B 14.31 N/A
HBAN Huntington Bancshares Incorpor..

+0.15 (+1.73%)

USD8.84B 12.39 N/A
PBCTP People's United Financial, Inc

+0.35 (+1.34%)

USD6.36B 18.20 N/A
CBSHP Commerce Bancshares, Inc

N/A

USD6.10B 6.98 N/A
CBSH Commerce Bancshares, Inc

+0.31 (+0.58%)

USD5.99B 21.36 N/A
ZION Zions Bancorporation, National..

+0.23 (+0.82%)

USD4.63B 12.66 N/A
SBNY Signature Bank

-0.09 (-0.11%)

USD4.52B 9.42 N/A

ETFs Containing CATY

Symbol Name Weight Mer Price(Change) Market Cap

N/A

Market Performance

  Market Performance vs.
Industry/Classification (Banks—Regional)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -44.05% 35% F 16% F
Dividend Return 2.44% 77% C+ 73% C
Total Return -41.60% 39% F 17% F
Trailing 12 Months  
Capital Gain -39.07% 38% F 19% F
Dividend Return 3.55% 78% C+ 74% C
Total Return -35.52% 42% F 21% F
Trailing 5 Years  
Capital Gain -30.11% 17% F 32% F
Dividend Return 16.41% 52% F 62% D-
Total Return -13.69% 23% F 35% F
Average Annual (5 Year Horizon)  
Capital Gain 1.89% N/A N/A N/A N/A
Dividend Return 2.76% N/A N/A N/A N/A
Total Return 4.65% N/A N/A N/A N/A
Risk Return Profile  
Volatility (Standard Deviation) 20.79% N/A N/A N/A N/A
Risk Adjusted Return 22.36% N/A N/A N/A N/A
Market Capitalization 1.66B 88% B+ 77% C+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Banks—Regional)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 7.67 83% B 78% C+
Price/Book Ratio 0.79 49% F 83% B
Price / Cash Flow Ratio 3.82 86% B 48% F
EV/EBITDA N/A N/A N/A N/A N/A
Management Effectiveness  
Return on Equity 10.63% 78% C+ 79% C+
Return on Invested Capital 11.71% 85% B 82% B-
Return on Assets 1.31% 87% B+ 63% D
Debt to Equity Ratio 5.19% 89% B+ 82% B-
Technical Ratios  
Short Ratio 7.16 30% F 21% F
Short Percent 2.87% 17% F 54% F
Beta 1.43 10% F 32% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

What to not like:
Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector