CATO:NYE-The Cato Corporation (USD)

COMMON STOCK | Apparel Retail | NYE

Last Closing Price

USD 14.42

Change

+0.66 (+4.80)%

Market Cap

USD 0.31B

Volume

0.11M

Average Target Price

N/A
Average Analyst Rating

N/A

Fundamental Analysis

Verdict

About

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. It operates its stores and e-commerce Websites under the Cato, Cato Fashions, Cato Plus, It's Fashion, It's Fashion Metro, and Versona names. As of January 30, 2021, the company operated 1,330 stores in 33 states. It also provides credit card services to its customers, as well as layaway plans for customers who agree to make periodic payments. The company was incorporated in 1946 and is headquartered in Charlotte, North Carolina.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-04-15 )

Largest Industry Peers for Apparel Retail

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
TJX The TJX Companies, Inc

+0.63 (+0.92%)

USD83.30B 986.71 75.93
BURL Burlington Stores, Inc

-1.10 (-0.34%)

USD21.68B 289.25 750.37
LB L Brands, Inc

-0.02 (-0.03%)

USD18.63B 22.27 11.79
GPS The Gap, Inc

+0.71 (+2.20%)

USD12.09B 8.73 7.79
AEO American Eagle Outfitters, Inc

+1.35 (+4.09%)

USD5.50B 7.10 36.67
CRI Carter's, Inc

+0.95 (+0.99%)

USD4.23B 38.49 17.01
ANF Abercrombie & Fitch Co

+1.06 (+2.73%)

USD2.41B 17.35 19.09
BKE The Buckle, Inc

-0.63 (-1.47%)

USD2.14B 16.13 11.23
BOOT Boot Barn Holdings, Inc

+0.50 (+0.75%)

USD1.93B 48.20 18.46
GES Guess', Inc

+1.34 (+5.02%)

USD1.72B 28.98 168.76

ETFs Containing CATO

Symbol Name Weight Mer Price(Change) Market Cap

N/A

Market Performance

  Market Performance vs.
Industry/Classification (Apparel Retail)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 50.36% 41% F 95% A
Dividend Return N/A N/A N/A N/A N/A
Total Return 50.36% 41% F 94% A
Trailing 12 Months  
Capital Gain 38.52% 12% F 43% F
Dividend Return N/A N/A N/A N/A N/A
Total Return 38.52% 12% F 39% F
Trailing 5 Years  
Capital Gain -61.59% 20% F 6% F
Dividend Return 14.06% 60% D- 47% F
Total Return -47.52% 20% F 7% F
Average Annual (5 Year Horizon)  
Capital Gain -19.29% 24% F 4% F
Dividend Return 6.30% 85% B 89% B+
Total Return -12.99% 29% F 7% F
Risk Return Profile  
Volatility (Standard Deviation) 36.95% 76% C 22% F
Risk Adjusted Return -35.16% 24% F 9% F
Market Capitalization 0.31B 18% F 32% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-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
(Apparel Retail)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 7.79 82% B- 85% B
Price/Book Ratio 1.29 88% B+ 65% D
Price / Cash Flow Ratio -10.13 94% A 90% A-
EV/EBITDA 4.18 100% A+ 89% B+
Management Effectiveness  
Return on Equity -16.87% 50% F 18% F
Return on Invested Capital -19.16% 12% F 7% F
Return on Assets -6.42% 29% F 7% F
Debt to Equity Ratio N/A N/A N/A N/A N/A
Technical Ratios  
Short Ratio 4.29 24% F 15% F
Short Percent 6.15% 65% D 41% F
Beta 0.96 100% A+ 60% D-
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:
Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

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 compared to book value

The stock is trading low compared to its peers on a price to book value 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.

Positive free cash flow

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

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free 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.

What to not like:
Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Negative cashflow

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

Low Revenue Growth

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