Cato Corp Stock Analysis, Valuation (NYSE:CATO)
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 2.9/5
Amigobulls CATO stock analysis uses latest quarter 2019 Q1 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?
- Cato Corp is a dividend paying stock with a high yield of 5.27.
- The company has a good Free Cash Flow (FCF) margin of 13.
Should you sell CATO stock?
- Cato Corp sales shrank by -0.6% year-over-year in 2018-04.
- The company saw an average annual sales decline of -2 in sales over the last 5 years.
- Cato Corp had an unimpressive average operating margin of 1.38 during the Last Twelve Months (LTM).
- Trading at a PE ratio of 28.5, CATO stock is overvalued in comparison to sector average multiple of 22.1.
- Cato Corp provides a low return on invested capital of 3.9.
- Cato Corp has a low return on equity of 2.8 over the last twelve months.
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.