The Cato Corporation Stock Price and Value Analysis

Should you buy The Cato Corporation stock? (NYSE:CATO). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company is solid.
  • This stock is available at a great discount!
  • This company has a high dividend yield.
  • This company has stable growth.
  • This company is making money at a modest rate.

Inside the CATO Numbers

CATO Price
(The Cato Corporation stock price per share)
$16.85
[?] CATO Fair Price
(based on intrinsic value)
$36.98
[?] CATO Safety Price (based on a variable margin of safety) $24.04
[?] PE Ratio versus Sector 1514% higher than other Consumer Goods stocks
[?] PE Ratio versus Industry 34% lower than other Unknown stocks
[?] Cash Yield 19.65%
[?] Free Cash Flow Jitter 25%
[?] Dividend Yield 3%
Shares Shorted 890,135

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 890,135 shares shorted. With 17,865,489 shares available for purchase and an average trading volume over the past 10 trading days of 88,671, it would take at least 10.039 days for all of the short holders to cover their shorts.

What does this mean to you? At this volume, it'll take more than two trading weeks for shorts to cover. This may indicate a short squeeze play would work! If this stock has good fundamentals and it'll take a while for the short holders to cover, buying now could net you bigger short-term technical gains if and as the price rises.

Is The Cato Corporation Stock on Sale?

We believe that The Cato Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Even better, The Cato Corporation looks like a stock on sale. Based on our analysis—if the company keeps making money the way it has been—you may be looking at a bargain. Keep this stock in mind as you put together your portfolio! See Before You Buy for your next steps (and read our disclaimer about investing risk).

Should You Buy CATO Stock?

Does The Cato Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.