Home Sectors Consumer Cyclical Recent Valuation: Cato Corporation (NYSE: CATO)

Recent Valuation: Cato Corporation (NYSE: CATO)

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Cato Corporation is in the retail apparel and specialty industry and consumer cyclical sector. The company CEO is John P. Derham Cato. Cato Corp is a fashion specialty retailer. The Company operates women’s fashion specialty retail stores in the southeastern United States under two segment: the operation of a fashion specialty stores segment and a credit card segment.

Previous Intraday Trading Performance:

The CATO stock showed a previous change of 1.36% with an open at 19.10 and a close of 19.34. It reached an intraday high of 19.52 and a low of 19.00.

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Liquidity:

The stock has a market cap of $477.2m with 24.7m shares outstanding, of which the float is 22.2m shares. Trading volume reached 383,755 shares compared to its average volume of 271,989 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Cato Corporation shares returned 5.45% and in the past 30 trading days it returned -6.24%. Over three months, it changed -20.15%. In one year it has changed 54.76% and within that year its 52-week high was 26.88 and its 52-week low was 10.76. CATO stock is 79.74% above its 52 Week Low.

Our calculations show a 200 day moving average of 18.02 and a 50 day moving average of 21.49. Currently CATO stock is trading 7.30% above its 200 day moving average.

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Earnings:

The last annual fiscal EPS for the company was reported at 0.34 that ended on 31st of January 2018, which according to the previous close, that is a PE of 56.88. The TTM EPS is 0.00, which comes to a TTM PE of 0.00.

The following are the last four quarter reported earnings per share:
07-31-2018:  0.26
04-30-2018:  0.94
01-31-2018:  -0.14
10-31-2017:  0.11

The dividend per share is currently 1.32, which is a dividend yield of 6.82%. CATO stock may not have enough earnings to cover future dividends and still be able to invest in the business, therefore the dividend may be cut in the future.

Base on our calculations, the intrinsic value per share is 18.57, which means it may be overvalued by -4.13%

Indicators to Watch:

Based on the latest filings, there is 79.10% of institutional ownership. Short-interest is 1,509,116, which is 6.12% of shares outstanding. The short-interest ratio or days-to-cover ratio is 5.64. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 0.53

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 4.80%, return on assets is 3.13%, profit margin is 1.89%, price-to-sales is 0.56 and price-to-book is 1.42.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 1  :Past Performance Score
 6  :Financial Strength Score
 1  :Future Growth Score
 4  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.