The CatoCATO +0.31%65 FCF Margin % is 4.08% as of Apr. 2026, which is 281% above its 10-year median of 1.07. 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 1,125 Retail - Cyclical companies, The Cato ranks worse than 67.91% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. The Cato's Free Cash Flow for the
three
months ended in Apr. 2026 was $7.0 Mil. The Cato's Revenue for the
three
months ended in Apr. 2026 was $171.1 Mil. Therefore, The Cato's FCF Margin % for the quarter that ended in Apr. 2026 was 4.08%.
The historical rank and industry rank for The Cato's FCF Margin % or its related term are showing as below:
CATO'
s FCF Margin % Range Over the Past 10 Years
Min: -7.77 Med: 1.07 Max: 7.24
Current: -0.17
During the past 13 years, the highest FCF Margin % of The Cato was 7.24%. The lowest was -7.77%. And the median was 1.07%.
CATO's FCF Margin % is ranked worse than 67.91% of 1125
companies
in the Retail - Cyclical industry
Industry Median: 3.02
vs CATO: -0.17
The Cato FCF Margin % Related Terms
The Cato FCF Margin % Historical Data
* Premium members only.
The historical data trend for The Cato's FCF 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.
For the Apparel Retail subindustry, The Cato's FCF Margin %, along with its competitors' market caps and FCF 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 FCF Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's FCF Margin % distribution charts can be found below:
* The bar in red indicates where The Cato's FCF 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 FCF Margin % of 4.08% as of Apr. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on The Cato and its competitors. This is 281% above median its historical median of 1.07. According to the industry distribution chart, The Cato ranks #764 out of 1125 companies in the Retail - Cyclical industry, placing it in the top 67.9%.
Is The Cato's FCF Margin % too high?
The Cato's current FCF Margin % of 4.08% is 281% above median its 10-year median of 1.07. The Retail - Cyclical industry median FCF Margin % is 3.02. The Cato's value of 4.08% is 35.1% above this industry median. Based on the distribution chart, The Cato ranks #764 out of 1125 companies in the Retail - Cyclical industry, which is below the industry midpoint. 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 FCF Margin % compare to DXLG and BRIA?
According to the Retail - Cyclical industry distribution chart, The Cato ranks #764 out of 1125 companies for FCF Margin %. This places The Cato in the lower half of its industry. The industry median FCF Margin % is 3.02. The Cato's value of 4.08% is 35.1% above this benchmark. While the company's 10-year median is 1.07 vs. the industry median of 3.02, 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 FCF Margin % for a Retail - Cyclical company?
The median FCF Margin % among Retail - Cyclical companies is 3.02, based on 1,125 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cato's current FCF Margin % of 4.08% is 35.1% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on The Cato and its competitors. For the Retail - Cyclical industry, the median FCF Margin % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cato's current FCF Margin % is 4.08%, which is 281% above median its own 10-year median of 1.07. 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 $3.21 — trading 23.4% below its estimated fair value. The current FCF Margin % is 4.08%, which is 281% above median its 10-year median of 1.07 and 35.1% above the Retail - Cyclical industry median of 3.02. 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 FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For The Cato (CATO), the current FCF Margin % is 4.08% 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 $3.21 is trading 23.4% below its estimated GF Value™ of $4.19.
GuruFocus considers The Cato to be Modestly Undervalued.
Key valuation signals for CATO:
FCF Margin %: 4.08% (281% above median its 10-year median of 1.07)
GF Value™: $4.19 vs. price of $3.21 (23.4% below fair value)
Industry Position: 35.1% above the Retail - Cyclical median (#764 of 1125)
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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