The CatoCATO -0.93%65 Net Margin % is 5.44% as of Apr. 2026, which is 444% above its 10-year median of 1.00. 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 71.81% on this metric.
Net margin is calculated as Net Income divided by its Revenue. The Cato's Net Income for the
three
months ended in Apr. 2026 was $9.3 Mil. The Cato's Revenue for the
three
months ended in Apr. 2026 was $171.1 Mil. Therefore, The Cato's net margin for the quarter that ended in Apr. 2026 was 5.44%.
The historical rank and industry rank for The Cato's Net Margin % or its related term are showing as below:
CATO'
s Net Margin % Range Over the Past 10 Years
Min: -8.26 Med: 1 Max: 4.94
Current: 0.01
CATO's Net Margin % is ranked worse than 71.81% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 2.33
vs CATO: 0.01
The Cato (NYSE:CATO) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
The Cato Net Margin % Related Terms
The Cato Net Margin % Historical Data
* Premium members only.
The historical data trend for The Cato's Net 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 Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's Net Margin % distribution charts can be found below:
* The bar in red indicates where The Cato's Net 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 Net Margin % of 5.44% as of Apr. 2026. Net margin is the ratio of total net income to net sales. View historical data on The Cato and its competitors. This is 444% above median its historical median of 1.00. According to the industry distribution chart, The Cato ranks #810 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 71.8%.
Is The Cato's Net Margin % too high?
The Cato's current Net Margin % of 5.44% is 444% above median its 10-year median of 1.00. The Retail - Cyclical industry median Net Margin % is 2.33. The Cato's value of 5.44% is 133.5% above this industry median. Based on the distribution chart, The Cato ranks #810 out of 1128 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 Net Margin % compare to DXLG and BRIA?
According to the Retail - Cyclical industry distribution chart, The Cato ranks #810 out of 1128 companies for Net Margin %. This places The Cato in the lower half of its industry. The industry median Net Margin % is 2.33. The Cato's value of 5.44% is 133.5% above this benchmark. While the company's 10-year median is 1.00 vs. the industry median of 2.33, 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 Net Margin % for a Retail - Cyclical company?
The median Net Margin % among Retail - Cyclical companies is 2.33, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cato's current Net Margin % of 5.44% is 133.5% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on The Cato and its competitors. For the Retail - Cyclical industry, the median Net Margin % is 2.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cato's current Net Margin % is 5.44%, which is 444% above median its own 10-year median of 1.00. 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 Net Margin % is 5.44%, which is 444% above median its 10-year median of 1.00 and 133.5% above the Retail - Cyclical industry median of 2.33. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For The Cato (CATO), the current Net Margin % is 5.44% 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:
Net Margin %: 5.44% (444% above median its 10-year median of 1.00)
GF Value™: $4.19 vs. price of $3.20 (23.6% below fair value)
Industry Position: 133.5% above the Retail - Cyclical median (#810 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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