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The CatoCATO -3.89%56 Return-on-Tangible-Asset is 8.65% as of Apr. 2026, which is 469% above its 10-year median of 1.52. GuruFocus rates CATO with a GF Score™ of 56/100 and a GF Value™ of $4.18 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,131 Retail - Cyclical companies, The Cato ranks worse than 71% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. The Cato's annualizedNet Income for the quarter that ended in Apr. 2026 was $37.2 Mil. The Cato's average total tangible assets for the quarter that ended in Apr. 2026 was $430.3 Mil. Therefore, The Cato's annualized Return-on-Tangible-Asset for the quarter that ended in Apr. 2026 was 8.65%.
The historical rank and industry rank for The Cato's Return-on-Tangible-Asset or its related term are showing as below:
CATO'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -7.44 Med: 1.52 Max: 7.58
Current: 0.02
During the past 13 years, The Cato's highest Return-on-Tangible-Asset was 7.58%. The lowest was -7.44%. And the median was 1.52%.
CATO's Return-on-Tangible-Asset is ranked worse than 71% of 1131
companies
in the Retail - Cyclical industry
Industry Median: 2.91
vs CATO: 0.02
The Cato (NYSE:CATO) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
The Cato Return-on-Tangible-Asset Related Terms
The Cato Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for The Cato's Return-on-Tangible-Asset 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 KMFG, BIRD, BRIA: Return-on-Tangible-Asset Comparison
For the Apparel Retail subindustry, The Cato's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where The Cato's Return-on-Tangible-Asset 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 the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
What does a Return-on-Tangible-Asset of 8.65% mean?
The Cato (CATO) has a Return-on-Tangible-Asset of 8.65% as of Apr. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on The Cato and its competitors. This is 469% above median its historical median of 1.52. According to the industry distribution chart, The Cato ranks #803 out of 1131 companies in the Retail - Cyclical industry, placing it in the top 71%.
Is The Cato's Return-on-Tangible-Asset too high?
The Cato's current Return-on-Tangible-Asset of 8.65% is 469% above median its 10-year median of 1.52. The Retail - Cyclical industry median Return-on-Tangible-Asset is 2.91. The Cato's value of 8.65% is 197.3% above this industry median. Based on the distribution chart, The Cato ranks #803 out of 1131 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, The Cato has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Cato's Return-on-Tangible-Asset compare to KMFG and BIRD?
According to the Retail - Cyclical industry distribution chart, The Cato ranks #803 out of 1131 companies for Return-on-Tangible-Asset. This places The Cato in the lower half of its industry. The industry median Return-on-Tangible-Asset is 2.91. The Cato's value of 8.65% is 197.3% above this benchmark. While the company's 10-year median is 1.52 vs. the industry median of 2.91, 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 Return-on-Tangible-Asset for a Retail - Cyclical company?
The median Return-on-Tangible-Asset among Retail - Cyclical companies is 2.91, based on 1,131 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cato's current Return-on-Tangible-Asset of 8.65% is 197.3% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on The Cato and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Asset is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cato's current Return-on-Tangible-Asset is 8.65%, which is 469% above median its own 10-year median of 1.52. 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 $3.21 — trading 23.2% below its estimated fair value. The current Return-on-Tangible-Asset is 8.65%, which is 469% above median its 10-year median of 1.52 and 197.3% above the Retail - Cyclical industry median of 2.91. The Cato's overall GF Score™ is 56/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For The Cato (CATO), the current Return-on-Tangible-Asset is 8.65% 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 $3.21 is trading 23.2% below its estimated GF Value™ of $4.18.
GuruFocus considers The Cato to be Modestly Undervalued.
Key valuation signals for CATO:
Return-on-Tangible-Asset: 8.65% (469% above median its 10-year median of 1.52)
GF Value™: $4.18 vs. price of $3.21 (23.2% below fair value)
Industry Position: 197.3% above the Retail - Cyclical median (#803 of 1131)
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.
56GF Score
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