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The Cato Corp.

  • Market Cap: Micro Cap
  • Industry: Footwear
  • ISIN: US1492051065
  • NYSE: CATO
USD
2.43
-0.03 (-1.22%)

Sep 24

NYS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Lands' End, Inc.
J.Jill, Inc.
Stitch Fix, Inc.
Tilly's, Inc.
Genesco, Inc.
Citi Trends, Inc.
Zumiez, Inc.
The Cato Corp.
Shoe Carnival, Inc.
Destination XL Group, Inc.
The Children's Place, Inc.

Why is The Cato Corp. ?

1
Poor Management Efficiency with a low ROE of 2.82%
  • The company has been able to generate a Return on Equity (avg) of 2.82% signifying low profitability per unit of shareholders funds
2
The company has declared Negative results for the last 7 consecutive quarters
  • OPERATING CASH FLOW(Y) Lowest at USD -12.94 MM
  • DEBTORS TURNOVER RATIO(HY) Lowest at 23.28 times
  • CASH AND EQV(HY) Lowest at USD 176.08 MM
3
Risky - Negative EBITDA
  • The stock is trading risky as compared to its average historical valuations
  • Over the past year, while the stock has generated a return of 0.58%, its profits have fallen by -59.6%
4
High Institutional Holdings at 47.48%
  • These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Underperformed the market in the last 1 year
  • The stock has generated a return of 0.58% in the last 1 year, much lower than market (S&P 500) returns of 14.11%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Cato Corp. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
The Cato Corp.
-44.01%
-0.50
75.33%
S&P 500
16.06%
0.70
20.15%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
2.60%
EBIT Growth (5y)
12.21%
EBIT to Interest (avg)
-8.22
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
2.90
Tax Ratio
9.46%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
49.06%
ROCE (avg)
3.05%
ROE (avg)
2.82%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.34
EV to EBIT
-2.20
EV to EBITDA
-7.44
EV to Capital Employed
0.23
EV to Sales
0.05
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-10.55%
ROE (Latest)
-3.92%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

12What is working for the Company
OPERATING CASH FLOW(Y)

Highest at USD 5.43 MM

NET PROFIT(HY)

Higher at USD 9.98 MM

ROCE(HY)

Highest at -3.42%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.86 times

DEBTORS TURNOVER RATIO(HY)

Highest at 27.62 times

-7What is not working for the Company
PRE-TAX PROFIT(Q)

At USD 1.3 MM has Fallen at -80.18%

NET PROFIT(Q)

At USD 1.1 MM has Fallen at -83.17%

RAW MATERIAL COST(Y)

Grown by 9.73% (YoY

Here's what is working for The Cato Corp.

Operating Cash Flow
Highest at USD 5.43 MM
in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Inventory Turnover Ratio
Highest at 4.86 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio
Highest at 27.62 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for The Cato Corp.

Pre-Tax Profit
At USD 1.3 MM has Fallen at -80.18%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit
At USD 1.1 MM has Fallen at -83.17%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (USD MM)

Raw Material Cost
Grown by 9.73% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income
Highest at USD 1.75 MM
in the last five periods
MOJO Watch
Increased income from non business activities may not be sustainable

Non Operating income

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