The CatoCATO +2.97%53 ROC (Joel Greenblatt) % is 15.91% as of Apr. 2026, which is 156% above its 10-year median of 6.21. GuruFocus rates CATO with a GF Score™ of 53/100 and a GF Value™ of $4.18 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,121 Retail - Cyclical companies, The Cato ranks worse than 77.16% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. The Cato's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 15.91%.
The historical rank and industry rank for The Cato's ROC (Joel Greenblatt) % or its related term are showing as below:
CATO'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -25.65 Med: 6.21 Max: 35.38
Current: -0.84
During the past 13 years, The Cato's highest ROC (Joel Greenblatt) % was 35.38%. The lowest was -25.65%. And the median was 6.21%.
CATO's ROC (Joel Greenblatt) % is ranked worse than 77.16% of 1121
companies
in the Retail - Cyclical industry
Industry Median: 11.49
vs CATO: -0.84
The Cato's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The Cato (NYSE:CATO) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The historical data trend for The Cato's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Apparel Retail subindustry, The Cato's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where The Cato's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 15.91% mean?
The Cato (CATO) has a ROC (Joel Greenblatt) % of 15.91% as of Apr. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on The Cato and its competitors. This is 156% above median its historical median of 6.21. According to the industry distribution chart, The Cato ranks #865 out of 1121 companies in the Retail - Cyclical industry, placing it in the top 77.2%.
Is The Cato's ROC (Joel Greenblatt) % too high?
The Cato's current ROC (Joel Greenblatt) % of 15.91% is 156% above median its 10-year median of 6.21. The Retail - Cyclical industry median ROC (Joel Greenblatt) % is 11.49. The Cato's value of 15.91% is 38.5% above this industry median. Based on the distribution chart, The Cato ranks #865 out of 1121 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, The Cato has a GF Score™ of 53/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Cato's ROC (Joel Greenblatt) % compare to KMFG and BIRD?
According to the Retail - Cyclical industry distribution chart, The Cato ranks #865 out of 1121 companies for ROC (Joel Greenblatt) %. This places The Cato in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.49. The Cato's value of 15.91% is 38.5% above this benchmark. While the company's 10-year median is 6.21 vs. the industry median of 11.49, 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 ROC (Joel Greenblatt) % for a Retail - Cyclical company?
The median ROC (Joel Greenblatt) % among Retail - Cyclical companies is 11.49, based on 1,121 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cato's current ROC (Joel Greenblatt) % of 15.91% is 38.5% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on The Cato and its competitors. For the Retail - Cyclical industry, the median ROC (Joel Greenblatt) % is 11.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cato's current ROC (Joel Greenblatt) % is 15.91%, which is 156% above median its own 10-year median of 6.21. 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 $3.47 — trading 17% below its estimated fair value. The current ROC (Joel Greenblatt) % is 15.91%, which is 156% above median its 10-year median of 6.21 and 38.5% above the Retail - Cyclical industry median of 11.49. The Cato's overall GF Score™ is 53/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For The Cato (CATO), the current ROC (Joel Greenblatt) % is 15.91% 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 17% below its estimated GF Value™ of $4.18.
GuruFocus considers The Cato to be Modestly Undervalued.
Key valuation signals for CATO:
ROC (Joel Greenblatt) %: 15.91% (156% above median its 10-year median of 6.21)
GF Value™: $4.18 vs. price of $3.47 (17% below fair value)
Industry Position: 38.5% above the Retail - Cyclical median (#865 of 1121)
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.
53GF Score
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