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The CatoCATO +1.47%53 Debt-to-Equity is 0.87 as of Apr. 2026, which is 24% above its 10-year median of 0.70. GuruFocus rates CATO with a GF Score™ of 53/100 and a GF Value™ of $4.17 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,023 Retail - Cyclical companies, The Cato ranks worse than 64.61% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for The Cato's Debt-to-Equity or its related term are showing as below:
CATO'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.5 Med: 0.7 Max: 0.96
Current: 0.87
During the past 13 years, the highest Debt-to-Equity Ratio of The Cato was 0.96. The lowest was 0.50. And the median was 0.70.
CATO's Debt-to-Equity is ranked worse than 64.61% of 1023
companies
in the Retail - Cyclical industry
Industry Median: 0.56
vs CATO: 0.87
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
The Cato Debt-to-Equity Related Terms
The Cato Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for The Cato's Debt-to-Equity 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-Equity Comparison
For the Apparel Retail subindustry, The Cato's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where The Cato's Debt-to-Equity 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.
The Cato (CATO) has a Debt-to-Equity of 0.87 as of Apr. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on The Cato and its competitors. This is 24% above median its historical median of 0.70. Over the past decade, The Cato's Debt-to-Equity has ranged from 0.50 to 0.96. According to the industry distribution chart, The Cato ranks #661 out of 1023 companies in the Retail - Cyclical industry, placing it in the top 64.6%.
Is The Cato's Debt-to-Equity too high?
The Cato's current Debt-to-Equity of 0.87 is 24% above median its 10-year median of 0.70. Over the past 10 years, this metric has ranged from a low of 0.50 to a high of 0.96. The Retail - Cyclical industry median Debt-to-Equity is 0.56. The Cato's value of 0.87 is 55.4% above this industry median. Based on the distribution chart, The Cato ranks #661 out of 1023 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, The Cato has a GF Score™ of 53/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Cato's Debt-to-Equity compare to LVLU and KMFG?
According to the Retail - Cyclical industry distribution chart, The Cato ranks #661 out of 1023 companies for Debt-to-Equity. This places The Cato in the lower half of its industry. The industry median Debt-to-Equity is 0.56. The Cato's value of 0.87 is 55.4% above this benchmark. Historically, The Cato's own Debt-to-Equity has ranged from 0.50 to 0.96 over the past decade. While the company's 10-year median is 0.70 vs. the industry median of 0.56, 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-Equity for a Retail - Cyclical company?
The median Debt-to-Equity among Retail - Cyclical companies is 0.56, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cato's current Debt-to-Equity of 0.87 is 55.4% 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on The Cato and its competitors. For the Retail - Cyclical industry, the median Debt-to-Equity is 0.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cato's current Debt-to-Equity is 0.87, which is 24% above median its own 10-year median of 0.70. 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 $3.35 — trading 19.7% below its estimated fair value. The current Debt-to-Equity is 0.87, which is 24% above median its 10-year median of 0.70 and 55.4% above the Retail - Cyclical industry median of 0.56. The Cato's overall GF Score™ is 53/100 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-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For The Cato (CATO), the current Debt-to-Equity is 0.87 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 $3.35 is trading 19.7% below its estimated GF Value™ of $4.17.
GuruFocus considers The Cato to be Modestly Undervalued.
Key valuation signals for CATO:
Debt-to-Equity: 0.87 (24% above median its 10-year median of 0.70)
GF Value™: $4.17 vs. price of $3.35 (19.7% below fair value)
Industry Position: 55.4% above the Retail - Cyclical median (#661 of 1023)
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.
53GF Score
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