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25.61 (1y: -13%)
Market Cap 735.65 M P/E(ttm) 12.40
Enterprise Value 509.2 M P/B 2.10
CATO- NYSE (USA)
Cato Corporation
  • Currently 3/5
Business Predictability Rank: 3-Star (On Watch)
Back Testing Results:
Average gain of all 3-Star stocks: 8.2% per year.
% of Stocks that are in still loss if held for 10yrs: 11%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$25.61
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GuruFocus Financial Strength Rank measures how strong a companyย’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 10/10

vs
industry		 vs
history
Cash to Debt No Debt
CATO's Cash to Debt is ranked higher than
84% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.55 vs. CATO: No Debt )
CATO' s 10-Year Cash to Debt Range
Min: 2.6   Max: No Debt
Current: No Debt
Equity to Asset 0.648
CATO's Equity to Asset is ranked higher than
78% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.52 vs. CATO: 0.648 )
CATO' s 10-Year Equity to Asset Range
Min: 0.54   Max: 0.71
Current: 0.65
0.54
0.71
Interest Coverage No Debt
CATO's Interest Coverage is ranked higher than
90% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 14.50 vs. CATO: No Debt )
CATO' s 10-Year Interest Coverage Range
Min: 896   Max: No Debt
Current: No Debt
F-Score: 4
Z-Score: 5.84
M-Score: -2.48
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry		 vs
history
Operating margin (%) 10.10
CATO's Operating margin (%) is ranked higher than
84% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 4.80 vs. CATO: 10.10 )
CATO' s 10-Year Operating margin (%) Range
Min: 4.8   Max: 10.4
Current: 10.1
4.8
10.4
Net-margin (%) 6.5
CATO's Net-margin (%) is ranked higher than
82% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 3.20 vs. CATO: 6.5 )
CATO' s 10-Year Net-margin (%) Range
Min: 3.8   Max: 7
Current: 6.5
3.8
7
ROE (%) 17.9
CATO's ROE (%) is ranked higher than
87% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 7.90 vs. CATO: 17.9 )
CATO' s 10-Year ROE (%) Range
Min: 12.8   Max: 18.8
Current: 17.9
12.8
18.8
ROA (%) 11.6
CATO's ROA (%) is ranked higher than
90% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 4.10 vs. CATO: 11.6 )
CATO' s 10-Year ROA (%) Range
Min: 7.7   Max: 13
Current: 11.6
7.7
13
ROC (Joel Greenblatt) (%) 54.10
CATO's ROC (Joel Greenblatt) (%) is ranked higher than
88% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 15.70 vs. CATO: 54.10 )
CATO' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 26.9   Max: 79.7
Current: 54.1
26.9
79.7
Revenue Growth (%) 1.9
CATO's Revenue Growth (%) is ranked higher than
73% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.00 vs. CATO: 1.9 )
CATO' s 10-Year Revenue Growth (%) Range
Min: 1.7   Max: 9.2
Current: 1.9
1.7
9.2
EBITDA Growth (%) 7
CATO's EBITDA Growth (%) is ranked higher than
81% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.00 vs. CATO: 7 )
CATO' s 10-Year EBITDA Growth (%) Range
Min: -3.7   Max: 16.9
Current: 7
-3.7
16.9
EPS Growth (%) 8
CATO's EPS Growth (%) is ranked higher than
82% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.00 vs. CATO: 8 )
CATO' s 10-Year EPS Growth (%) Range
Min: -5   Max: 17.7
Current: 8
-5
17.7
ยป CATO's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

CATO Guru Trades in Q2 2012

Steven Cohen 14,226 sh (New)
Joel Greenblatt 9,639 sh (+28.73%)
Chuck Royce 4,219,519 sh (unchged)
Jim Simons 121,050 sh (-39.7%)
» More
Q3 2012

CATO Guru Trades in Q3 2012

Jim Simons 194,450 sh (+60.64%)
Chuck Royce 4,219,519 sh (unchged)
Joel Greenblatt Sold Out
Steven Cohen 7,789 sh (-45.25%)
» More
Q4 2012

CATO Guru Trades in Q4 2012

Paul Tudor Jones 18,500 sh (New)
Meridian Funds 18,500 sh (New)
Steven Cohen Sold Out
Chuck Royce 4,186,232 sh (-0.79%)
Jim Simons 185,800 sh (-4.45%)
» More
Q1 2013

CATO Guru Trades in Q1 2013

Steven Cohen 10,943 sh (New)
Joel Greenblatt 30,307 sh (New)
Paul Tudor Jones 34,600 sh (+87.03%)
Meridian Funds 18,500 sh (unchged)
Chuck Royce 4,135,725 sh (-1.21%)
Jim Simons 160,800 sh (-13.46%)
» More
» Details

Insider Trades

Latest Guru Trades with CATO

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-03-31 New Buy0.04%$24.1 - $27.66 $ 25.61-2%30307
Meridian Funds 2012-12-31 New Buy0.02%$26.08 - $30.45 $ 25.61-10%18500
Joel Greenblatt 2012-09-30 Sold Out 0.02%$27.5 - $31.75 $ 25.61-14%0
Joel Greenblatt 2012-06-30 Add 28.73%$26.82 - $30.26 $ 25.61-10%9639
Joel Greenblatt 2012-03-31 Reduce -76.83%0.07%$23.63 - $29.19 $ 25.613%7488
Joel Greenblatt 2011-09-30 Add 78.34%0.06%$22.79 - $30.74 $ 25.61-2%36645
Joel Greenblatt 2011-06-30 Reduce -30.94%0.07%$24.12 - $29.38 $ 25.61-2%20548
Joel Greenblatt 2011-03-31 New Buy0.22%$23.03 - $27.87 $ 25.614%29752
Premium More recent guru trades are included for Premium Members only!!
ยป Financial Charts

Peter Lynch Chart

Ratios

vs
industry		 vs
history
P/E(ttm) 12.40
CATO's P/E(ttm) is ranked higher than
78% of the 811 Companies
in the Global Apparel Stores industry.

( Industry Median: 16.70 vs. CATO: 12.40 )
CATO' s 10-Year P/E(ttm) Range
Min: 7.47   Max: 19.83
Current: 12.4
7.47
19.83
P/B 2.10
CATO's P/B is ranked higher than
52% of the 953 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.58 vs. CATO: 2.10 )
CATO' s 10-Year P/B Range
Min: 1.34   Max: 3.32
Current: 2.1
1.34
3.32
P/S 0.80
CATO's P/S is ranked higher than
57% of the 992 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.70 vs. CATO: 0.80 )
CATO' s 10-Year P/S Range
Min: 0.41   Max: 0.99
Current: 0.8
0.41
0.99
PFCF 24.30
CATO's PFCF is ranked higher than
55% of the 739 Companies
in the Global Apparel Stores industry.

( Industry Median: 20.11 vs. CATO: 24.30 )
CATO' s 10-Year PFCF Range
Min: 6.93   Max: 28.05
Current: 24.3
6.93
28.05
EV-to-EBIT 5.6
CATO's EV-to-EBIT is ranked higher than
89% of the 818 Companies
in the Global Apparel Stores industry.

( Industry Median: 12.39 vs. CATO: 5.6 )
CATO' s 10-Year EV-to-EBIT Range
Min: 4.1   Max: 11.7
Current: 5.6
4.1
11.7
PEG 0.8
CATO's PEG is ranked higher than
79% of the 392 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.29 vs. CATO: 0.8 )
CATO' s 10-Year PEG Range
Min: 0.23   Max: 10.09
Current: 0.8
0.23
10.09
Shiller P/E 14.1
CATO's Shiller P/E is ranked lower than
100% of the Companies
in the Global Apparel Stores industry.

( Industry Median: vs. CATO: 14.1 )
CATO' s 10-Year Shiller P/E Range
Min: 9.02   Max: 20.52
Current: 14.1
9.02
20.52

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 2.40
CATO's Dividend Yield is ranked higher than
73% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.25 vs. CATO: 2.40 )
CATO' s 10-Year Dividend Yield Range
Min: 1.97   Max: 5.5
Current: 2.4
1.97
5.5
Dividend Payout 0.3795
CATO's Dividend Payout is ranked higher than
62% of the 598 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.40 vs. CATO: 0.3795 )
CATO' s 10-Year Dividend Payout Range
Min: 0.22   Max: 0.63
Current: 0.38
0.22
0.63
Dividend growth (3y) 10.4
CATO's Dividend growth (3y) is ranked higher than
93% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.00 vs. CATO: 10.4 )
CATO' s 10-Year Dividend growth (3y) Range
Min: 2.8   Max: 20.2
Current: 10.4
2.8
20.2
Yield on cost (5-Year) 4.10
CATO's Yield on cost (5-Year) is ranked higher than
83% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.19 vs. CATO: 4.10 )
CATO' s 10-Year Yield on cost (5-Year) Range
Min: 3.36   Max: 9.39
Current: 4.1
3.36
9.39
Share Buyback Rate 0.2
CATO's Share Buyback Rate is ranked higher than
91% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.00 vs. CATO: 0.2 )
CATO' s 10-Year Share Buyback Rate Range
Min: 5.1   Max: 0
Current: 0.2

Valuation & Return

vs
industry		 vs
history
Price/Net Cash 640.3
CATO's Price/Net Cash is ranked lower than
77% of the 155 Companies
in the Global Apparel Stores industry.

( Industry Median: 14.80 vs. CATO: 640.3 )
CATO' s 10-Year Price/Net Cash Range
Min: 13.7   Max: 689.3
Current: 640.3
13.7
689.3
Price/Net Current Asset Value 7.5
CATO's Price/Net Current Asset Value is ranked higher than
61% of the 894 Companies
in the Global Apparel Stores industry.

( Industry Median: 7.30 vs. CATO: 7.5 )
CATO' s 10-Year Price/Net Current Asset Value Range
Min: 4   Max: 7.9
Current: 7.5
4
7.9
Price/Tangible Book 2.2
CATO's Price/Tangible Book is ranked higher than
57% of the 868 Companies
in the Global Apparel Stores industry.

( Industry Median: 2.00 vs. CATO: 2.2 )
CATO' s 10-Year Price/Tangible Book Range
Min: 1.5   Max: 3
Current: 2.2
1.5
3
Price/DCF (Projected) 0.7
CATO's Price/DCF (Projected) is ranked higher than
82% of the 447 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.30 vs. CATO: 0.7 )
CATO' s 10-Year Price/DCF (Projected) Range
Min: 0.6   Max: 1
Current: 0.7
0.6
1
Price/Median PS Value 1.1
CATO's Price/Median PS Value is ranked higher than
63% of the 927 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.10 vs. CATO: 1.1 )
CATO' s 10-Year Price/Median PS Value Range
Min: 0.6   Max: 1.2
Current: 1.1
0.6
1.2
Price/Peter Lynch Fair Value 0.7
CATO's Price/Peter Lynch Fair Value is ranked higher than
87% of the 269 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.10 vs. CATO: 0.7 )
CATO' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.7   Max: 2.3
Current: 0.7
0.7
2.3
Price/Graham Number 1.1
CATO's Price/Graham Number is ranked higher than
67% of the 733 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.30 vs. CATO: 1.1 )
CATO' s 10-Year Price/Graham Number Range
Min: 0.7   Max: 1.6
Current: 1.1
0.7
1.6
Earnings Yield (Greenblatt) 17.70
CATO's Earnings Yield (Greenblatt) is ranked higher than
91% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 6.80 vs. CATO: 17.70 )
CATO' s 10-Year Earnings Yield (Greenblatt) Range
Min: 8.6   Max: 24.5
Current: 17.7
8.6
24.5
Forward Rate of Return (Yacktman) 23.19
CATO's Forward Rate of Return (Yacktman) is ranked higher than
93% of the 1044 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.00 vs. CATO: 23.19 )
CATO' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 4.2   Max: 46.6
Current: 23.19
4.2
46.6

Business Description

Cato Corporation was founded in 1946, operating 1,271 women's fashion specialty stores at January 30, 2010, in 31 states, mainly in the southeastern United States. The Company has two reportable segments- the operation of women's fashion specialty stores segment and a credit card segment. The apparel specialty stores operate under the names "Cato," "Cato Fashions," "Cato Plus," "It's Fashion" and "It's Fashion Metro" and are located mainly in strip shopping centers mainly in the southeastern United States. The Company seeks to offer quality fashion apparel and accessories at low prices, every day in junior/missy, plus sizes and girls sizes 7 to 16. The Company's stores feature an assortment of apparel and accessories, including dressy, career, and casual sportswear, dresses, coats, shoes, lingerie, costume jewelry and handbags. A major portion of the Company's merchandise is sold under its private label and is produced by various vendors in accordance with the Company's specifications. Most stores range in size from 3,500 to 6,000 square feet and are located primarily in strip shopping centers anchored by national discounters or market-dominant grocery stores. The Company offers its own credit card and layaway plan. The Company offers its own credit card, customers applying for the Company's credit card are approved for credit if they have a satisfactory credit record and the Company has considered the customer's ability to make the required minimum payment. Under the Company's layaway plan, merchandise is set aside for customers who agree to make periodic payments. The Company competes with retail chains that operate similar women's apparel specialty stores and with mass merchandise chains, discount store chains and major department stores.
Company Website
SEC Reports
Industry: Apparel Stores
Compare:IDEXY, ARO, TJX, FRCOF, ROST
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