Cato Corporation (CATO) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Cato Corporation stock (CATO) is currently trading at $2.77. Cato Corporation PS ratio (Price-to-Sales) is 0.09. Analyst consensus price target for CATO is $23.00. WallStSmart rates CATO as Underperform.
- CATO PE ratio analysis and historical PE chart
- CATO PS ratio (Price-to-Sales) history and trend
- CATO intrinsic value — DCF, Graham Number, EPV models
- CATO stock price prediction 2025 2026 2027 2028 2029 2030
- CATO fair value vs current price
- CATO insider transactions and insider buying
- Is CATO undervalued or overvalued?
- Cato Corporation financial analysis — revenue, earnings, cash flow
- CATO Piotroski F-Score and Altman Z-Score
- CATO analyst price target and Smart Rating
Cato Corporation
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Smart Analysis
Cato Corporation (CATO) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, price/sales, price/book. Concerns around market cap and return on equity. Fundamentals are solid but monitor weak areas for improvement.
Cato Corporation (CATO) Key Strengths (4)
Paying less than $1 for every $1 of annual revenue
Trading below book value, meaning the market prices it less than net assets
Earnings per share surging 6325.00% year-over-year
Good growth relative to its price
Supporting Valuation Data
Cato Corporation (CATO) Areas to Watch (6)
Company is destroying shareholder value
Company is losing money with a negative profit margin
Near-zero operating margins, business under pressure
Revenue growing slowly at 4.70% annually
Micro-cap company with very limited liquidity and high volatility
Moderate institutional interest at 33.83%
Cato Corporation (CATO) Detailed Analysis Report
Overall Assessment
This company scores 53/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.5/10) while 6 fall into concern territory (avg 2.0/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Price/Sales, Price/Book, EPS Growth. Valuation metrics including PEG Ratio (1.17), Price/Sales (0.09), Price/Book (0.34) suggest the stock is attractively priced. Growth metrics are encouraging with EPS Growth at 6325.00%.
The Bear Case
The primary concerns are Return on Equity, Profit Margin, Operating Margin. Growth concerns include Revenue Growth at 4.70%, which may limit upside. Profitability pressure is visible in Return on Equity at -10.30%, Operating Margin at 2.92%, Profit Margin at -2.92%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -10.30% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 4.70% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Price/Sales, Price/Book) and negatives (Return on Equity, Profit Margin). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
CATO Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
CATO's Price-to-Sales ratio of 0.09x trades at a deep discount to its historical average of 0.47x (1th percentile). The current valuation is 89% below its historical high of 0.83x set in Jan 2015, and -2% above its historical low of 0.09x in Mar 2026.
WallStSmart Analysis Synopsis
Data-driven financial summary for Cato Corporation (CATO) · CONSUMER CYCLICAL › APPAREL RETAIL
The Big Picture
Cato Corporation is in a turnaround phase, with management focused on restoring profitability. Revenue reached 651M with 5% growth year-over-year. The company is currently unprofitable, posting a -2.9% profit margin.
Key Findings
The company is unprofitable with a -2.9% profit margin. The path to breakeven will be the key catalyst.
Free cash flow is -13M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Sector dynamics: monitor APPAREL RETAIL industry trends, competitive moves, and regulatory changes that could impact Cato Corporation.
Bottom Line
Cato Corporation is in turnaround mode. The path to profitability remains the critical question. Speculative investors may see opportunity in the recovery story, but conservative investors should wait for consistent positive earnings before committing capital.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(0 last 3 months)
Data sourced from SEC Form 4 filings
Last updated: 10:06:46 AM
About Cato Corporation(CATO)
NYSE
CONSUMER CYCLICAL
APPAREL RETAIL
USA
The Cato Corporation is a specialty clothing and fashion accessories retailer primarily in the southeastern United States. The company is headquartered in Charlotte, North Carolina.