The CatoCATO +3.73%65 OCF Yield % is 4.08 as of Jun. 28, 2026, which is 56% below its 10-year median of 9.34. 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 1,122 Retail - Cyclical companies, The Cato ranks worse than 62.75% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high operating cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
The Cato OCF Yield % Related Terms
The Cato OCF Yield % Historical Data
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The historical data trend for The Cato's OCF Yield % 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 OCF Yield %, along with its competitors' market caps and OCF Yield % 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 OCF Yield % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's OCF Yield % distribution charts can be found below:
* The bar in red indicates where The Cato's OCF Yield % 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 OCF Yield % of 4.08 as of Jun. 28, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on The Cato and its competitors. This is 56% below median its historical median of 9.34. According to the industry distribution chart, The Cato ranks #704 out of 1122 companies in the Retail - Cyclical industry, placing it in the top 62.7%.
Is The Cato's OCF Yield % too high?
The Cato's current OCF Yield % of 4.08 is 56% below median its 10-year median of 9.34. The Retail - Cyclical industry median OCF Yield % is 7.64. The Cato's value of 4.08 is 46.6% below this industry median. Based on the distribution chart, The Cato ranks #704 out of 1122 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 OCF Yield % compare to DXLG and BRIA?
According to the Retail - Cyclical industry distribution chart, The Cato ranks #704 out of 1122 companies for OCF Yield %. This places The Cato in the lower half of its industry. The industry median OCF Yield % is 7.64. The Cato's value of 4.08 is 46.6% below this benchmark. While the company's 10-year median is 9.34 vs. the industry median of 7.64, 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 OCF Yield % for a Retail - Cyclical company?
The median OCF Yield % among Retail - Cyclical companies is 7.64, based on 1,122 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cato's current OCF Yield % of 4.08 is 46.6% 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on The Cato and its competitors. For the Retail - Cyclical industry, the median OCF Yield % is 7.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cato's current OCF Yield % is 4.08, which is 56% below median its own 10-year median of 9.34. 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 $3.34 — trading 20.3% below its estimated fair value. The current OCF Yield % is 4.08, which is 56% below median its 10-year median of 9.34 and 46.6% below the Retail - Cyclical industry median of 7.64. 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 OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For The Cato (CATO), the current OCF Yield % is 4.08 as of Jun. 28, 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 $3.34 is trading 20.3% below its estimated GF Value™ of $4.19.
GuruFocus considers The Cato to be Modestly Undervalued.
Key valuation signals for CATO:
OCF Yield %: 4.08 (56% below median its 10-year median of 9.34)
GF Value™: $4.19 vs. price of $3.34 (20.3% below fair value)
Industry Position: 46.6% below the Retail - Cyclical median (#704 of 1122)
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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