The Cato (CATO) Fundamental Analysis: Revenue, Earnings & Valuation

7.44 / 10

Outperform

Fundamental analysis rates Cato at 7.44/10, highlighting strong Profit‑MV, Cash‑MV and cash‑up factors, and solid ROE despite a negative absolute value. Equity multiplier and net‑income‑revenue also contribute positively. Weaknesses appear in return‑on‑assets and EBIT ratios, but overall outlook remains promising.

Analysis Checks(7/10)

Annualized return on equity (%)

Value-10.18

Score2/3

Weight13.60%

1M Return3.12%

Profit-MV

Value0.96

Score2/3

Weight24.90%

1M Return5.74%

Net income-Revenue

Value-2.56

Score3/3

Weight34.15%

1M Return7.68%

Rate of return on total assets (%)

Value-3.42

Score0/3

Weight-6.47%

1M Return-2.10%

Cash-UP

Value-0.16

Score2/3

Weight4.10%

1M Return1.03%

Annualized return on total assets (%)

Value-3.42

Score0/3

Weight-6.47%

1M Return-2.10%

EBIT / Total operating revenue (%)

Value-2.47

Score0/3

Weight-7.61%

1M Return-2.51%

ROE (%)

Value-10.18

Score2/3

Weight13.60%

1M Return3.12%

Equity multiplier (DuPont analysis %)

Value2.65

Score3/3

Weight18.29%

1M Return4.41%

Cash-MV

Value0.02

Score2/3

Weight11.89%

1M Return2.86%

Is CATO fundamentally strong?

CATO scores 7.44/10 on fundamentals and holds a Discounted valuation at present. Backed by its 3.00% ROE, -1.38% net margin, -5.96 P/E ratio, 0.32 P/B ratio, and 0.00% earnings growth, these metrics solidify its Outperform investment rating.