Cathay General Bancorp (CATY) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

United Community Banks, Inc.

International Bancshares Corp.

Hancock Whitney Corp.

United Bankshares, Inc. (West Virginia)

ServisFirst Bancshares, Inc.

BancFirst Corp. (Oklahoma)

Synovus Financial Corp.

Ameris Bancorp

Cathay General Bancorp

Glacier Bancorp, Inc.

First Interstate BancSystem, Inc.

Why is Cathay General Bancorp ?

High Profitability with a Net Interest Margin of 3.01%

Positive results in Jun 25

NII(Q) Highest at USD 181.22 MM
OPERATING PROFIT MARGIN(Q) Highest at 29.81 %
OPERATING PROFIT(Q) Highest at USD 96.28 MM

With ROA of 0.68%, it has a fair valuation with a 1.30 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -8.54%, its profits have fallen by -14%

High Institutional Holdings at 78.06%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -8.54% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cathay General Bancorp should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Cathay General Bancorp for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Cathay General Bancorp

-2.3%

1.25

30.29%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.84%

EBIT Growth (5y)

3.60%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

34.40%

Pledged Shares

Institutional Holding

78.06%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.30

EV to EBIT

7.20

EV to EBITDA

6.83

EV to Capital Employed

1.62

EV to Sales

1.68

PEG Ratio

Dividend Yield

199.21%

ROCE (Latest)

22.49%

ROE (Latest)

9.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

NII(Q)

Highest at USD 181.22 MM

OPERATING PROFIT MARGIN(Q)

Highest at 29.81 %

OPERATING PROFIT(Q)

Highest at USD 96.28 MM

PRE-TAX PROFIT(Q)

Highest at USD 96.28 MM

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 330.98 MM

GROSS NPA (%)

Here's what is working for Cathay General Bancorp

NII

Highest at USD 181.22 MM and Grown

In each period in the last five periods

MOJO Watch

The bank's income from core business is increasing

Net NPA

Operating Profit Margin

Highest at 29.81 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Operating Profit

Highest at USD 96.28 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 96.28 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Depreciation

Highest at USD 5.06 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Cathay General Bancorp

Operating Cash Flow

Lowest at USD 330.98 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Non Performing Loans (%)

Highest at 0.91%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Non Performing Loans (%)