CATO (The Cato) Moat Score: 3/10 (As of Jul. 01, 2026)


CATO The Cato Corp CATO
65 GF Score
Price $3.28
GF Value $4.18
Valuation Modestly Undervalued
! 2 Warning Signs
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What is The Cato Moat Score?

The Cato CATO +1.23% 65 Moat Score is 3 as of Jul. 01, 2026. GuruFocus rates CATO with a GF Score™ of 65/100 and a GF Value™ of $4.18 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,118 Retail - Cyclical companies, The Cato ranks better than 84.26% on this metric.

The Cato has the Moat Score of 3, which implies that the company might have No Moat - Very weak/transient advantages.

The Cato has No Moat: The Cato Corp has limited market leadership and brand strength. It lacks significant customer switching costs, intellectual property, and regulatory barriers. The company's competitive position is weak, with no durable cost advantages or impactful innovation to support a stronger moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes The Cato might have No Moat - Very weak/transient advantages.

The Cato  (NYSE:CATO) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

The Cato Moat Score Related Terms

CATO vs KMFG, BIRD, BRIA: Moat Score Comparison

For the Apparel Retail subindustry, The Cato's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's Moat Score distribution charts can be found below:

* The bar in red indicates where The Cato's Moat Score falls into.


CATO
65GF Score
The Cato Corp CATO
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 3 mean?
The Cato (CATO) has a Moat Score of 3 as of Jul. 01, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, The Cato ranks #176 out of 1118 companies in the Retail - Cyclical industry, placing it in the top 15.7%.
Is The Cato's Moat Score too high?
The Cato's current Moat Score is 3. Based on the distribution chart, The Cato ranks #176 out of 1118 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position 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 Moat Score compare to KMFG and BIRD?
According to the Retail - Cyclical industry distribution chart, The Cato ranks #176 out of 1118 companies for Moat Score. This places The Cato in the top 16% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Retail - Cyclical company?
A good Moat Score depends on the Retail - Cyclical industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. The Cato's current Moat Score is 3. 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 $4.18, compared to a current price of $3.28 — trading 21.5% below its estimated fair value. The current Moat Score is 3. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For The Cato (CATO), the current Moat Score is 3 as of Jul. 01, 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 $3.28 is trading 21.5% below its estimated GF Value™ of $4.18. GuruFocus considers The Cato to be Modestly Undervalued.

Key valuation signals for CATO:

  • Moat Score: 3
  • GF Value™: $4.18 vs. price of $3.28 (21.5% below fair value)
  • GF Score™: 65/100 with 2 warning signs

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 Business Description

Other Exchanges CO2A:Germany
Address 8100 Denmark Road, Charlotte, NC, USA, 28273-5975
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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$3.28
Price
$4.18
GF Value