The CatoCATO -0.93%65 EBITDA Margin % is 6.33% as of Apr. 2026, which is 115% above its 10-year median of 2.95. GuruFocus rates CATO with a GF Score™ of 65/100 and a GF Value™ of $4.19 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,128 Retail - Cyclical companies, The Cato ranks worse than 79.7% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. The Cato's EBITDA for the
three
months ended in Apr. 2026 was $10.8 Mil. The Cato's Revenue for the
three
months ended in Apr. 2026 was $171.1 Mil. Therefore, The Cato's EBITDA margin for the quarter that ended in Apr. 2026 was 6.33%.
The Cato (NYSE:CATO) EBITDA Margin % Explanation
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
The Cato EBITDA Margin % Related Terms
The Cato EBITDA Margin % Historical Data
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The historical data trend for The Cato's EBITDA Margin % 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 DXLG, BRIA, BIRD: EBITDA Margin % Comparison
For the Apparel Retail subindustry, The Cato's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where The Cato's EBITDA Margin % 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 EBITDA Margin % of 6.33% as of Apr. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on The Cato and its competitors. This is 115% above median its historical median of 2.95. According to the industry distribution chart, The Cato ranks #899 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 79.7%.
Is The Cato's EBITDA Margin % too high?
The Cato's current EBITDA Margin % of 6.33% is 115% above median its 10-year median of 2.95. The Retail - Cyclical industry median EBITDA Margin % is 7.48. The Cato's value of 6.33% is 15.3% below this industry median. Based on the distribution chart, The Cato ranks #899 out of 1128 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 EBITDA Margin % compare to DXLG and BRIA?
According to the Retail - Cyclical industry distribution chart, The Cato ranks #899 out of 1128 companies for EBITDA Margin %. This places The Cato in the lower half of its industry. The industry median EBITDA Margin % is 7.48. The Cato's value of 6.33% is 15.3% below this benchmark. While the company's 10-year median is 2.95 vs. the industry median of 7.48, The Cato has consistently been below 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 EBITDA Margin % for a Retail - Cyclical company?
The median EBITDA Margin % among Retail - Cyclical companies is 7.48, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cato's current EBITDA Margin % of 6.33% is 15.3% below 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 EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on The Cato and its competitors. For the Retail - Cyclical industry, the median EBITDA Margin % is 7.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cato's current EBITDA Margin % is 6.33%, which is 115% above median its own 10-year median of 2.95. 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 $4.19, compared to a current price of $3.20 — trading 23.6% below its estimated fair value. The current EBITDA Margin % is 6.33%, which is 115% above median its 10-year median of 2.95 and 15.3% below the Retail - Cyclical industry median of 7.48. 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 EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For The Cato (CATO), the current EBITDA Margin % is 6.33% 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 $3.20 is trading 23.6% below its estimated GF Value™ of $4.19.
GuruFocus considers The Cato to be Modestly Undervalued.
Key valuation signals for CATO:
EBITDA Margin %: 6.33% (115% above median its 10-year median of 2.95)
GF Value™: $4.19 vs. price of $3.20 (23.6% below fair value)
Industry Position: 15.3% below the Retail - Cyclical median (#899 of 1128)
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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