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The CatoCATO +4.98%65 Debt-to-EBITDA is 3.35 as of Apr. 2026, which is 6% below its 10-year median of 3.58. GuruFocus rates CATO with a GF Score™ of 65/100 and a GF Value™ of $4.17 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 903 Retail - Cyclical companies, The Cato ranks worse than 96.12% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for The Cato's Debt-to-EBITDA or its related term are showing as below:
CATO'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -39.31 Med: 3.58 Max: 57.84
Current: 18.51
During the past 13 years, the highest Debt-to-EBITDA Ratio of The Cato was 57.84. The lowest was -39.31. And the median was 3.58.
CATO's Debt-to-EBITDA is ranked worse than 96.12% of 903
companies
in the Retail - Cyclical industry
Industry Median: 2.41
vs CATO: 18.51
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The Cato Debt-to-EBITDA Related Terms
The Cato Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for The Cato's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CATO vs LVLU, KMFG, DXLG: Debt-to-EBITDA Comparison
For the Apparel Retail subindustry, The Cato's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Cato Debt-to-EBITDA vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where The Cato's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Apr. 2026) EBITDA data.
The Cato (CATO) has a Debt-to-EBITDA of 3.35 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on The Cato. This is near median its historical median of 3.58. According to the industry distribution chart, The Cato ranks #868 out of 903 companies in the Retail - Cyclical industry, placing it in the top 96.1%.
Is The Cato's Debt-to-EBITDA too high?
The Cato's current Debt-to-EBITDA of 3.35 is near median its 10-year median of 3.58. The Retail - Cyclical industry median Debt-to-EBITDA is 2.41. The Cato's value of 3.35 is 39% above this industry median. Based on the distribution chart, The Cato ranks #868 out of 903 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, The Cato has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Cato's Debt-to-EBITDA compare to LVLU and KMFG?
According to the Retail - Cyclical industry distribution chart, The Cato ranks #868 out of 903 companies for Debt-to-EBITDA. This places The Cato in the lower half of its industry. The industry median Debt-to-EBITDA is 2.41. The Cato's value of 3.35 is 39% above this benchmark. While the company's 10-year median is 3.58 vs. the industry median of 2.41, The Cato has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Retail - Cyclical company?
The median Debt-to-EBITDA among Retail - Cyclical companies is 2.41, based on 903 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cato's current Debt-to-EBITDA of 3.35 is 39% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on The Cato. For the Retail - Cyclical industry, the median Debt-to-EBITDA is 2.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cato's current Debt-to-EBITDA is 3.35, which is near median its own 10-year median of 3.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Cato stock overvalued right now?
Based on GuruFocus' analysis, The Cato (CATO) is currently considered Modestly Undervalued. The stock's GF Value™ is $4.17, compared to a current price of $3.37 — trading 19.2% below its estimated fair value. The current Debt-to-EBITDA is 3.35, which is near median its 10-year median of 3.58 and 39% above the Retail - Cyclical industry median of 2.41. The Cato's overall GF Score™ is 65/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For The Cato (CATO), the current Debt-to-EBITDA is 3.35 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Cato (CATO) Overvalued in 2026?
Based on GuruFocus' analysis, The Cato stock appears to be undervalued.
The current stock price of $3.37 is trading 19.2% below its estimated GF Value™ of $4.17.
GuruFocus considers The Cato to be Modestly Undervalued.
Key valuation signals for CATO:
Debt-to-EBITDA: 3.35 (near median its 10-year median of 3.58)
GF Value™: $4.17 vs. price of $3.37 (19.2% below fair value)
Industry Position: 39% above the Retail - Cyclical median (#868 of 903)
No single metric tells the full story. See the CATO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Cato Corp seeks to offer quality fashion apparel and accessories at low prices every day, in junior/missy and plus sizes. The Cato concept's stores and e-commerce website feature a broad assortment of apparel and accessories, including dressy, career, and casual sportswear, dresses, coats, shoes, lingerie, costume jewelry, and handbags. Management believes the Company's success is dependent upon its ability to differentiate its stores from department stores, mass merchandise discount stores, and competing specialty stores. The key elements of the Company's business are: Merchandise Assortment, Value Pricing, Strip Shopping Center Location, Customer Service, Credit and Layaway Programs.
65GF Score
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