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The CatoCATO +1.46%59 Net-Net Working Capital is $-6.03 as of Apr. 2026. GuruFocus rates CATO with a GF Score™ of 59/100 and a GF Value™ of $4.17 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 330 Retail - Cyclical companies, The Cato ranks worse than 303030% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
The Cato's Net-Net Working Capital for the quarter that ended in Apr. 2026 was $-6.03.
The industry rank for The Cato's Net-Net Working Capital or its related term are showing as below:
CATO's Price-to-Net-Net-Working-Capital is not ranked *
in the Retail - Cyclical industry.
Industry Median: 6.125 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
The Cato (NYSE:CATO) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
The Cato Net-Net Working Capital Related Terms
The Cato Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for The Cato's Net-Net Working Capital 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: Net-Net Working Capital Comparison
For the Apparel Retail subindustry, The Cato's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where The Cato's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-6.03 mean?
The Cato (CATO) has a Net-Net Working Capital of $-6.03 as of Apr. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on The Cato According to the industry distribution chart, The Cato ranks #999999 out of 330 companies in the Retail - Cyclical industry.
Is The Cato's Net-Net Working Capital too high?
The Cato's current Net-Net Working Capital is $-6.03. Based on the distribution chart, The Cato ranks #999999 out of 330 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, The Cato has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Cato's Net-Net Working Capital compare to LVLU and KMFG?
According to the Retail - Cyclical industry distribution chart, The Cato ranks #999999 out of 330 companies for Net-Net Working Capital. This places The Cato in the lower half of its industry. The industry median Net-Net Working Capital is 6.13. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Retail - Cyclical company?
The median Net-Net Working Capital among Retail - Cyclical companies is 6.13, based on 330 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on The Cato For the Retail - Cyclical industry, the median Net-Net Working Capital is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cato's current Net-Net Working Capital is $-6.03. 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 $3.47 — trading 16.8% below its estimated fair value. The current Net-Net Working Capital is $-6.03. The Cato's overall GF Score™ is 59/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For The Cato (CATO), the current Net-Net Working Capital is $-6.03 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 $3.47 is trading 16.8% below its estimated GF Value™ of $4.17.
GuruFocus considers The Cato to be Modestly Undervalued.
Key valuation signals for CATO:
Net-Net Working Capital: $-6.03
GF Value™: $4.17 vs. price of $3.47 (16.8% below fair value)
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.
59GF Score
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