CATO (The Cato) Growth Rank: 1 (As of Aug. 25, 2026) — 50% Below Median

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CATO The Cato Corp CATO
55 GF Score
Price $2.79
GF Value $4.16
Valuation Significantly Undervalued
! 2 Warning Signs
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What is The Cato Growth Rank?

The Cato CATO 55 Growth Rank is 1 as of Aug. 25, 2026, which is 50% below its 10-year median of 2.00. GuruFocus rates CATO with a GF Score™ of 55/100 and a GF Value™ of $4.16 (Significantly Undervalued). The stock has 2 warning signs investors should review.

The Cato has the Growth Rank of 1.

GuruFocus Growth Rank measures the growth of a company in terms of its revenue and profitability, rated on a scale from 1 to 10. Historically, the companies with the highest growth ranks performed the best over the long term. It is calculated using the following criteria:

1. 5-year revenue growth rate, the higher, the better.
2. 3-year revenue growth rate, the higher, the better.
3. 5-year EBITDA growth rate, the higher, the better.
4. The predictability of 5-year revenue. The most consistent it is, the higher the rank.

A higher score reflects a greater ability to drive business growth, with companies considered to have strong and sustainable expansion potential. Conversely, a lower score indicates challenges in achieving consistent growth and scalability.

GuruFocus found that the Growth Rank is the second of the two most-sensitive parameters among the five parameters checked. Please click GF Score to see more details on GF Score's 5 Key Aspects of Analysis.

Please note that we are using the five-year EBITDA growth rate as a parameter, so the company needs to have had positive growth over that time. The reason we use EBITDA instead of earnings per share is that with EBITDA, we can rank a lot more companies since a company may have positive EBITDA but negative EPS. Since we are looking at the growth here, EBITDA gives us a pretty clear picture about the growth in the company's business operations.

CATO vs LVLU, KMFG, DXLG: Growth Rank Comparison

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

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

* The bar in red indicates where The Cato's Growth Rank falls into.


CATO
55GF Score
The Cato Corp CATO
Growth Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Growth Rank →
What does a Growth Rank of 1 mean?
The Cato (CATO) has a Growth Rank of 1 as of Aug. 25, 2026. Growth Rank measures the growth of a company in terms of its revenue and profitability. View historical data on The Cato and its competitors. This is 50% below median its historical median of 2.00. Over the past decade, The Cato's Growth Rank has ranged from 1.00 to 9.00.
Is The Cato's Growth Rank too high?
The Cato's current Growth Rank of 1 is 50% below median its 10-year median of 2.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 9.00. Overall, The Cato has a GF Score™ of 55/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Cato's Growth Rank compare to LVLU and KMFG?
The Cato's Growth Rank of 1 can be compared against companies in the Retail - Cyclical industry. Historically, The Cato's own Growth Rank has ranged from 1.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Growth Rank for a Retail - Cyclical company?
A good Growth Rank depends on the Retail - Cyclical industry context. However, Growth Rank 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 Growth Rank mean?
A high Growth Rank can signal that a stock is expensive relative to its fundamentals. Growth Rank measures the growth of a company in terms of its revenue and profitability. View historical data on The Cato and its competitors. The Cato's current Growth Rank is 1, which is 50% below median its own 10-year median of 2.00. 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 Significantly Undervalued. The stock's GF Value™ is $4.16, compared to a current price of $2.79 — trading 32.9% below its estimated fair value. The current Growth Rank is 1, which is 50% below median its 10-year median of 2.00. The Cato's overall GF Score™ is 55/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Growth Rank calculated?
Growth Rank is calculated from a company's financial statements. For The Cato (CATO), the current Growth Rank is 1 as of Aug. 25, 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 $2.79 is trading 32.9% below its estimated GF Value™ of $4.16. GuruFocus considers The Cato to be Significantly Undervalued.

Key valuation signals for CATO:

  • Growth Rank: 1 (50% below median its 10-year median of 2.00)
  • GF Value™: $4.16 vs. price of $2.79 (32.9% below fair value)
  • GF Score™: 55/100 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.
55GF Score

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Growth Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.79
Price
$4.16
GF Value