50.73 USD
-1.57 (-3%)
50.73 USD
0 (0%)
Taking everything into account, CATY scores 5 out of 10 in our fundamental rating. CATY was compared to 383 industry peers in the Banks industry. CATY has an average financial health and profitability rating. CATY has a correct valuation and a medium growth rate. CATY also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- CATY had positive earnings in the past year.
- CATY had a positive operating cash flow in the past year.
- CATY had positive earnings in 4 of the past 5 years.
- CATY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- CATY has a better Return On Assets (1.27%) than 80.42% of its industry peers.
- With a decent Return On Equity value of 10.50%, CATY is doing good in the industry, outperforming 68.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 10.5% | ||
| 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 39.00%, CATY belongs to the top of the industry, outperforming 94.52% of the companies in the same industry.
- In the last couple of years the Profit Margin of CATY has declined.
- 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) | 39% | ||
| 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
2. Health
2.1 Basic Checks
- CATY does not have a ROIC to compare to the WACC, probably because it is not profitable.
- There is no outstanding debt for CATY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- The Debt to FCF ratio of CATY is 0.35, which is an excellent value as it means it would take CATY, only 0.35 years of fcf income to pay off all of its debts.
- CATY has a better Debt to FCF ratio (0.35) than 83.55% of its industry peers.
- CATY has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.05, CATY belongs to the top of the industry, outperforming 81.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.35 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC22.97%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.65% over the past year.
- The Earnings Per Share has been growing by 9.61% on average over the past years. This is quite good.
EPS 1Y (TTM)14.65%
EPS 3Y-2.45%
EPS 5Y9.61%
EPS Q2Q%18.75%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.49%
3.2 Future
- Based on estimates for the next years, CATY will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.67% on average per year.
- CATY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.92% yearly.
EPS Next Y15.93%
EPS Next 2Y12.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.37%
Revenue Next 2Y6.92%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 11.17, the valuation of CATY can be described as reasonable.
- Based on the Price/Earnings ratio, CATY is valued a bit cheaper than 67.89% of the companies in the same industry.
- CATY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 9.64, the valuation of CATY can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CATY indicates a somewhat cheap valuation: CATY is cheaper than 67.62% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of CATY to the average of the S&P500 Index (24.26), we can say CATY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 9.64 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, CATY is valued a bit cheaper than the industry average as 76.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.74 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as CATY's earnings are expected to grow with 12.67% in the coming years.
PEG (NY)0.7
PEG (5Y)1.16
EPS Next 2Y12.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- CATY has a Yearly Dividend Yield of 2.60%. Purely for dividend investing, there may be better candidates out there.
- CATY's Dividend Yield is comparable with the industry average which is at 2.84.
- CATY's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
5.2 History
- The dividend of CATY has a limited annual growth rate of 2.09%.
- CATY has paid a dividend for at least 10 years, which is a reliable track record.
- CATY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.09%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
- CATY pays out 31.20% of its income as dividend. This is a sustainable payout ratio.
- CATY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.2%
EPS Next 2Y12.67%
EPS Next 3YN/A
CATHAY GENERAL BANCORP / CATY FAQ
What is the fundamental rating for CATY stock?
ChartMill assigns a fundamental rating of 5 / 10 to CATY.
What is the valuation status of CATHAY GENERAL BANCORP (CATY) stock?
ChartMill assigns a valuation rating of 6 / 10 to CATHAY GENERAL BANCORP (CATY). This can be considered as Fairly Valued.
Can you provide the profitability details for CATHAY GENERAL BANCORP?
CATHAY GENERAL BANCORP (CATY) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for CATY stock?
The Earnings per Share (EPS) of CATHAY GENERAL BANCORP (CATY) is expected to grow by 15.93% in the next year.
Is the dividend of CATHAY GENERAL BANCORP sustainable?
The dividend rating of CATHAY GENERAL BANCORP (CATY) is 7 / 10 and the dividend payout ratio is 31.2%.