Cato Corp Stock Analysis, Valuation (NYSE:CATO)

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$16.46 $0.07 (0.42%) CATO stock closing price Apr 25, 2018 (Closing)
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Cato Corp
Updated on : Apr 25, 2018
previous close
CATO 16.5 (0%)
S&P 500 2639.4 (0%)
Closing Price On: Apr 25, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Apparel-Shoe
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2018-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-2.1%
Operating Profit
Operating Margin:
1.3%
Sector Average:
5.5%
5 Quarter Net Profit
Net Margins
2018-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
-$2.3M
Net Income:
-$15.5M
Dividend Yield
CATO dividend yield:
8.02%
PROS      CONS
High Dividend Yield
PS Valuation
Recent Growth
Long Term Growth
Operating Margins
ROIC
ROE
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CATO PS :
0.5
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
3.2%
Return on Equity:
2.4%
Free Cash Flow Margin:
-2.2%
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Cato Corp Stock Analysis

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Investors can watch the Amigobulls Cato Corp stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for CATO stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Cato Corp Stock Rating 2.6/5

Amigobulls CATO stock analysis uses latest quarter 2018 Q4 financial data like Cato Corp revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for Cato Corp valuation analysis. Cato Corp stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy CATO stock?

  • When compared with the Retail-Apparel-Shoe industry average PS ratio of 0.7, the price-to-sales ratio of 0.5 for CATO stock is attractive.
  • The company has a healthy dividend yield of 8.02%.

Should you sell CATO stock?

  • Cato Corp sales shrank by -3.4% year-over-year in 2018 Q4.
  • Sales declined by -2.1% annually over the last 5 years.
  • Cato Corp had an unimpressive average operating margin of 1.3% during the Last Twelve Months (LTM).
  • Cato Corp has a poor return on invested capital of 3.2%.
  • Cato Corp has a low Return On Equity (ROE) of 2.4%.
  • The company has a negative free cash flow margin of -2.2%.

Comments on this video and Cato Corp stock

Amigobulls Cato Corp stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of CATO stock. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, Cato Corp revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of CATO technical analysis to check whether the fundamental story is reflected in the market sentiment.