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.

CATO Free Cash Flow Trend

Free Cash Flow trendline for CATO
Free Cash Flow trendline for The Cato Corporation

Based on historical returns, we believe that The Cato Corporation can grow its free cash at a rate of about 1%. That's positive!

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

Inside the CATO Numbers

CATO Price
(The Cato Corporation stock price per share)
[?] CATO Fair Price
(based on intrinsic value)
[?] CATO Safety Price (based on a variable margin of safety) $22.78
[?] PE Ratio versus Sector 12% lower than other Consumer Goods stocks
[?] PE Ratio versus Industry 24% lower than other Apparel Stores stocks
[?] Cash Yield 22.64%
[?] Free Cash Flow Jitter 25%
[?] Dividend Yield 9%

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.