CATO (The Cato) ROCE %: 12.82% (As of Apr. 2026)

What is The Cato ROCE %?

The Cato CATO -0.93% 65 ROCE % is 12.82% as of Apr. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. The Cato's annualized ROCE % for the quarter that ended in Apr. 2026 was 12.82%.

The Cato (NYSE:CATO) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

The Cato ROCE % Related Terms

The Cato ROCE % Historical Data

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The historical data trend for The Cato's ROCE % 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.

The Cato ROCE % Chart

The Cato Annual Data

Trend

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Jan25

Jan26

ROCE %

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9.77

0.50

-4.24

-5.70

-2.79

The Cato Quarterly Data
	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24	Jan25	Apr25	Jul25	Oct25	Jan26	Apr26
ROCE %	Get a 7-Day Free Trial															4.65	7.92	-12.20	-9.98	12.82

65GF Score

The Cato Corp CATO

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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The Cato ROCE % Calculation

The Cato's annualized ROCE % for the fiscal year that ended in Jan. 2026 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2026 )		(A: Jan. 2025 )		(A: Jan. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2026 )		(A: Jan. 2025 )		(A: Jan. 2026 )
	=	-7.385	/	( ( (452.361 - 188.239)	+	(421.419 - 155.892) )	/ 2 )
	=	-7.385	/	( (264.122	+	265.527)	/ 2 )
	=	-7.385	/	264.8245
	=	-2.79 %

The Cato's ROCE % of for the quarter that ended in Apr. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Apr. 2026 )		(Q: Jan. 2026 )		(Q: Apr. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Apr. 2026 )		(Q: Jan. 2026 )		(Q: Apr. 2026 )
	=	34.392	/	( ( (421.419 - 155.892)	+	(439.18 - 168.218) )	/ 2 )
	=	34.392	/	( ( 265.527	+	270.962 )	/ 2 )
	=	34.392	/	268.2445
	=	12.82 %

(1) Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 12.82% mean?

The Cato (CATO) has a ROCE % of 12.82% as of Apr. 2026.

Is The Cato's ROCE % too high?

The Cato's current ROCE % is 12.82%. The Retail - Cyclical industry median ROCE % is 7.58. The Cato's value of 12.82% is 69.1% above this industry median. 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 ROCE % compare to DXLG and BRIA?

The Cato's ROCE % of 12.82% can be compared against companies in the Retail - Cyclical industry. The industry median ROCE % is 7.58. The Cato's value of 12.82% is 69.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Retail - Cyclical company?

The median ROCE % among Retail - Cyclical companies is 7.58, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cato's current ROCE % of 12.82% is 69.1% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Retail - Cyclical industry, the median ROCE % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cato's current ROCE % is 12.82%. 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 $3.20 — trading 23.6% below its estimated fair value. The current ROCE % is 12.82% and 69.1% above the Retail - Cyclical industry median of 7.58. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For The Cato (CATO), the current ROCE % is 12.82% 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 $3.20 is trading 23.6% below its estimated GF Value™ of $4.19. GuruFocus considers The Cato to be Modestly Undervalued.

Key valuation signals for CATO:

ROCE %: 12.82%
GF Value™: $4.19 vs. price of $3.20 (23.6% below fair value)
GF Score™: 65/100 with 2 warning signs
Industry Position: 69.1% above the Retail - Cyclical median

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

Industry Consumer Cyclical Retail - Cyclical

Comparable Companies DXLG BRIA BIRD AKA LVLU IVDN DBGI LSEB JEM DLTH XMAD:ITX TJX TSE:9983 ROST BURL LSE:NXT BOM:500251 LULU TSX:ATZ GAP

Other Exchanges CO2A:Germany

Address 8100 Denmark Road, Charlotte, NC, USA, 28273-5975

Website https://www.catofashions.com

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

$3.20

Price

$4.19

GF Value

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