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 | Slightly risky | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Moves totally opposite to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Not Available | 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. |
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 |
Cato's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 127.11 M.Cato's profitablity analysis
The company has Profit Margin (PM) of (0.03) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.01) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.01.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.
Basic technical analysis of Cato Stock
As of the 29th of January, Cato shows the Standard Deviation of 5.57, mean deviation of 3.49, and Risk Adjusted Performance of (0.12). 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.
| BNP Paribas FRN Corp BondUSF1R15XK367 | View | |
| MGM Resorts International Corp BondUS552953CD18 | 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 | (0.12) | |||
| Market Risk Adjusted Performance | 0.7314 | |||
| Mean Deviation | 3.49 | |||
| Coefficient Of Variation | (675.81) | |||
| Standard Deviation | 5.57 | |||
| Variance | 31.04 | |||
| Information Ratio | (0.16) | |||
| Jensen Alpha | (0.75) | |||
| Total Risk Alpha | (1.33) | |||
| Treynor Ratio | 0.7214 | |||
| Maximum Drawdown | 32.46 | |||
| Value At Risk | (7.29) | |||
| Potential Upside | 5.65 | |||
| Skewness | (1.95) | |||
| Kurtosis | 8.67 |
| Risk Adjusted Performance | (0.12) | |||
| Market Risk Adjusted Performance | 0.7314 | |||
| Mean Deviation | 3.49 | |||
| Coefficient Of Variation | (675.81) | |||
| Standard Deviation | 5.57 | |||
| Variance | 31.04 | |||
| Information Ratio | (0.16) | |||
| Jensen Alpha | (0.75) | |||
| Total Risk Alpha | (1.33) | |||
| Treynor Ratio | 0.7214 | |||
| Maximum Drawdown | 32.46 | |||
| Value At Risk | (7.29) | |||
| Potential Upside | 5.65 | |||
| Skewness | (1.95) | |||
| Kurtosis | 8.67 |
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.
| Accumulation Distribution | 627.45 | |||
| Daily Balance Of Power | 0.25 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 3.59 | |||
| Day Typical Price | 3.59 | |||
| Price Action Indicator | 0.015 | |||
| Period Momentum Indicator | 0.03 |
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 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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.
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.