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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

ServisFirst Bancshares, Inc.

Synovus Financial Corp.

International Bancshares Corp.

United Community Banks, Inc.

Cathay General Bancorp

United Bankshares, Inc. (West Virginia)

Ameris Bancorp

Hancock Whitney Corp.

First Interstate BancSystem, Inc.

Glacier Bancorp, Inc.

BancFirst Corp. (Oklahoma)

Why is Cathay General Bancorp ?

High Profitability with a Net Interest Margin of 5.11%

Positive results in Dec 25

NII(Q) Highest at USD 195.01 MM
GROSS NPA (%)(Q) Lowest at 0.56%
OPERATING PROFIT(Q) Highest at USD 103.76 MM

With ROA of 0.89%, it has a expensive valuation with a 1.35 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 6.83%, its profits have fallen by -3%

High Institutional Holdings at 78.43%

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

Underperformed the market in the last 1 year

The stock has generated a return of 6.83% in the last 1 year, much lower than market (S&P 500) returns of 17.78%

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

10.26%

1.11

30.47%

S&P 500

20.78%

0.92

19.35%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.32%

EBIT Growth (5y)

9.58%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

29.96%

Pledged Shares

Institutional Holding

78.43%

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

1.35

EV to EBIT

8.61

EV to EBITDA

8.18

EV to Capital Employed

1.54

EV to Sales

2.17

PEG Ratio

Dividend Yield

190.38%

ROCE (Latest)

17.89%

ROE (Latest)

10.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

12What is working for the Company

NII(Q)

Highest at USD 195.01 MM

GROSS NPA (%)

OPERATING PROFIT(Q)

Highest at USD 103.76 MM

OPERATING PROFIT MARGIN(Q)

Highest at 31.18 %

PRE-TAX PROFIT(Q)

Highest at USD 113.47 MM

NET PROFIT(Q)

Highest at USD 90.52 MM

EPS(Q)

Highest at USD 1.33

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 313.51 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 25.56%

CREDIT DEPOSIT RATIO(HY)

Lowest at 96.35%

Here's what is working for Cathay General Bancorp

NII

Highest at USD 195.01 MM and Grown

In each period in the last five periods

MOJO Watch

The bank's income from core business is increasing

Net NPA

Non Performing Loans (%)

Lowest at 0.56%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are falling

Non Performing Loans (%)

Operating Profit

Highest at USD 103.76 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 31.18 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 113.47 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 90.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 1.33

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Here's what is not working for Cathay General Bancorp

Operating Cash Flow

Lowest at USD 313.51 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)

Credit Deposit Ratio

Lowest at 96.35%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets

Credit Deposit Ratio (%)

Dividend Payout Ratio

Lowest at 25.56%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)