CATHAY GENERAL BANCORP(NASDAQ:CATY) stock Fundamental Analysis

Fundamental Rating

Overall CATY gets a fundamental rating of 4 out of 10. We evaluated CATY against 402 industry peers in the Banks industry. CATY has only an average score on both its financial health and profitability. CATY has a correct valuation and a medium growth rate. CATY also has an excellent dividend rating.

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1. Profitability

1.1 Basic Checks

In the past year CATY was profitable.

In the past year CATY had a positive cash flow from operations.

Each year in the past 5 years CATY has been profitable.

Of the past 5 years CATY 4 years had a positive operating cash flow.

1.2 Ratios

CATY has a better Return On Assets (1.24%) than 80.94% of its industry peers.

CATY's Return On Equity of 10.19% is fine compared to the rest of the industry. CATY outperforms 71.29% of its industry peers.

		Industry Rank	Sector Rank
ROA	1.24%
ROE	10.19%
ROIC	N/A

ROA(3y)1.47%

ROA(5y)1.41%

ROE(3y)12.52%

ROE(5y)11.85%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 38.52%, CATY belongs to the top of the industry, outperforming 94.80% of the companies in the same industry.

CATY's Profit Margin has declined in the last couple of years.

The Operating Margin and Gross Margin are not available for CATY so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	38.52%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y-5.01%

PM growth 5Y-2.72%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CATY does not have a ROIC to compare to the WACC, probably because it is not profitable.

The number of shares outstanding for CATY has been reduced compared to 1 year ago.

Compared to 5 years ago, CATY has less shares outstanding

Compared to 1 year ago, CATY has a worse debt to assets ratio.

2.2 Solvency

CATY has a debt to FCF ratio of 0.45. This is a very positive value and a sign of high solvency as it would only need 0.45 years to pay back of all of its debts.

Looking at the Debt to FCF ratio, with a value of 0.45, CATY belongs to the top of the industry, outperforming 85.15% of the companies in the same industry.

CATY has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.

With an excellent Debt to Equity ratio value of 0.05, CATY belongs to the best of the industry, outperforming 82.43% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.05
Debt/FCF	0.45
Altman-Z	N/A

ROIC/WACCN/A

WACC17.9%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

CATY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.52%.

CATY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.62% yearly.

The Revenue has decreased by -9.89% in the past year.

CATY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.30% yearly.

EPS 1Y (TTM)-18.52%

EPS 3Y1.3%

EPS 5Y2.62%

EPS Q2Q%-0.88%

Revenue 1Y (TTM)-9.89%

Revenue growth 3Y3.8%

Revenue growth 5Y3.3%

Sales Q2Q%-9.14%

3.2 Future

The Earnings Per Share is expected to grow by 10.70% on average over the next years. This is quite good.

The Revenue is expected to grow by 6.89% on average over the next years.

EPS Next Y8.94%

EPS Next 2Y10.7%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year6.26%

Revenue Next 2Y6.89%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

CATY is valuated reasonably with a Price/Earnings ratio of 11.28.

Based on the Price/Earnings ratio, CATY is valued a bit cheaper than 64.11% of the companies in the same industry.

Compared to an average S&P500 Price/Earnings ratio of 29.35, CATY is valued rather cheaply.

A Price/Forward Earnings ratio of 10.35 indicates a reasonable valuation of CATY.

Based on the Price/Forward Earnings ratio, CATY is valued a bit cheaper than 60.89% of the companies in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 22.10. CATY is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	11.28
Fwd PE	10.35

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of CATY indicates a somewhat cheap valuation: CATY is cheaper than 62.38% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	10.34
EV/EBITDA	N/A

4.3 Compensation for Growth

CATY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.

PEG (NY)1.26

PEG (5Y)4.31

EPS Next 2Y10.7%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

CATY has a Yearly Dividend Yield of 3.06%. Purely for dividend investing, there may be better candidates out there.

CATY's Dividend Yield is comparable with the industry average which is at 3.37.

CATY's Dividend Yield is a higher than the S&P500 average which is at 2.33.

		Industry Rank	Sector Rank
Dividend Yield	3.06%

5.2 History

The dividend of CATY has a limited annual growth rate of 5.64%.

CATY has been paying a dividend for at least 10 years, so it has a reliable track record.

CATY has not decreased their dividend for at least 10 years, which is a reliable track record.

Dividend Growth(5Y)5.64%

Div Incr Years0

Div Non Decr Years14

5.3 Sustainability

34.18% of the earnings are spent on dividend by CATY. This is a low number and sustainable payout ratio.

CATY's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP34.18%

EPS Next 2Y10.7%

EPS Next 3YN/A

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CATHAY GENERAL BANCORP

NASDAQ:CATY (3/7/2025, 8:09:41 PM)

After market: 44.67 0 (0%)

44.67

+0.21 (+0.47%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)01-22 2025-01-22/amc

Earnings (Next)04-21 2025-04-21/amc

Inst Owners76.67%

Inst Owner Change2.24%

Ins Owners1.45%

Ins Owner Change-2.01%

Market Cap3.14B

Analysts78.18

Price Target53.45 (19.66%)

Short Float %2.74%

Short Ratio5.18

Dividend

		Industry Rank	Sector Rank
Dividend Yield	3.06%

Yearly Dividend1.35

Dividend Growth(5Y)5.64%

DP34.18%

Div Incr Years0

Div Non Decr Years14

Ex-Date02-27 2025-02-27 (0.34)

Surprises & Revisions

EPS beat(2)0

Avg EPS beat(2)-3.36%

Min EPS beat(2)-3.72%

Max EPS beat(2)-2.99%

EPS beat(4)1

Avg EPS beat(4)-1.13%

Min EPS beat(4)-3.72%

Max EPS beat(4)4.19%

EPS beat(8)4

Avg EPS beat(8)0.74%

EPS beat(12)7

Avg EPS beat(12)1.95%

EPS beat(16)11

Avg EPS beat(16)4.38%

Revenue beat(2)1

Avg Revenue beat(2)-0.12%

Min Revenue beat(2)-2.32%

Max Revenue beat(2)2.07%

Revenue beat(4)2

Avg Revenue beat(4)-1.74%

Min Revenue beat(4)-8.38%

Max Revenue beat(4)2.07%

Revenue beat(8)3

Avg Revenue beat(8)-1.68%

Revenue beat(12)6

Avg Revenue beat(12)-0.51%

Revenue beat(16)7

Avg Revenue beat(16)-0.62%

PT rev (1m)0%

PT rev (3m)11.97%

EPS NQ rev (1m)0.55%

EPS NQ rev (3m)0.55%

EPS NY rev (1m)2.32%

EPS NY rev (3m)1.21%

Revenue NQ rev (1m)-0.13%

Revenue NQ rev (3m)-0.13%

Revenue NY rev (1m)0%

Revenue NY rev (3m)1.79%

Valuation

		Industry Rank	Sector Rank
PE	11.28
Fwd PE	10.35
P/S	4.2
P/FCF	10.34
P/OCF	10.19
P/B	1.11
P/tB	1.28
EV/EBITDA	N/A

EPS(TTM)3.96

EY8.87%

EPS(NY)4.31

Fwd EY9.66%

FCF(TTM)4.32

FCFY9.67%

OCF(TTM)4.38

OCFY9.81%

SpS10.65

BVpS40.27

TBVpS34.87

PEG (NY)1.26

PEG (5Y)4.31

Profitability

		Industry Rank	Sector Rank
ROA	1.24%
ROE	10.19%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	38.52%
GM	N/A
FCFM	40.58%

ROA(3y)1.47%

ROA(5y)1.41%

ROE(3y)12.52%

ROE(5y)11.85%

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y-5.01%

PM growth 5Y-2.72%

GM growth 3YN/A

GM growth 5YN/A

F-Score5

Asset Turnover0.03

Health

		Industry Rank	Sector Rank
Debt/Equity	0.05
Debt/FCF	0.45
Debt/EBITDA	N/A
Cap/Depr	30.21%
Cap/Sales	0.6%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	105.35%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score5

WACC17.9%

ROIC/WACCN/A

Cap/Depr(3y)N/A

Cap/Depr(5y)N/A

Cap/Sales(3y)N/A

Cap/Sales(5y)N/A

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-18.52%

EPS 3Y1.3%

EPS 5Y2.62%

EPS Q2Q%-0.88%

EPS Next Y8.94%

EPS Next 2Y10.7%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)-9.89%

Revenue growth 3Y3.8%

Revenue growth 5Y3.3%

Sales Q2Q%-9.14%

Revenue Next Year6.26%

Revenue Next 2Y6.89%

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1YN/A

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y-26.71%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-25.97%

OCF growth 3YN/A

OCF growth 5YN/A

CATHAY GENERAL BANCORP (CATY) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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