Cato Corporation (CATO) Fair Value & Analysis
Consumer Cyclical · US · Market cap $65.9M · ISIN US1492051065
Cato Corporation
CATO · US
Strengths
Risks
Fair value as of: Aug 13, 2026
From 2 valuation models · updated 15 days ago
Fair value updated Aug 13, 2026, revised from $5.79 to $5.25 (−9.3%) since Jul 15, 2026. Share price −19.5% over the past month.
A solid business, trading 50% below our fair value.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price is below even our cautious bear case ($3.92). The market is more pessimistic than our downside scenario.
- The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
- Solid quality (56/100) at a price below fair value, the discount is the argument here, not the business quality.
- A fairly wide model range ($3.92 to $7.84) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range $2.27 – $15.31 · fair‑value band $3.92 – $7.84 · the $2.65 price screens below the $5.25 fair value. Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Cato Corporation (CATO) currently trades at $2.65, while our model-based Fair Value estimate is $5.25, implying the stock looks roughly 98.1% undervalued today. The Quality Score stands at 56/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: low), always confirm before acting.
Trailing-twelve-month revenue stands at $655M. Revenue grew 0.5% year over year. It earns a return on equity of 0.1%. Net debt stands at $131M. Fundamentals as of Aug 13, 2026
Our scenario range runs from $3.92 (bear case) to $7.84 (bull case); at $2.65, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 46% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -38% fair-value upside, at 98%, CATO screens cheaper than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 2 models by family
Widest divergence: Asset-Based ($5.79) versus DCF Models ($1.23). Highest evidence: NCAV (Graham) (50).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 54 · Market factors (momentum, volatility) 26
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
The Cato Corporation, together with its subsidiaries, operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. It operates through two segments, Retail and Credit.
Full company description
The Cato Corporation, together with its subsidiaries, operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. It operates through two segments, Retail and Credit. The company's stores and e-commerce websites offer a range of apparel and accessories, including dressy, career, and casual sportswear; and dresses, coats, shoes, lingerie, costume jewelry, and handbags, as well as men's wear, and lines for kids and infants. It operates its stores and e-commerce websites under the Cato, Cato Fashions, Cato Plus, It's Fashion, It's Fashion Metro, and Versona names. It also provides credit card services and layaway plans for customers. The Cato Corporation was incorporated in 1946 and is headquartered in Charlotte, North Carolina.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
Cato Corporation reported revenue of $654M in FY2026 versus $769M in FY2022, a compound −4.0%/yr. Reported net income was −$5.9M in FY2026.
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Peer Group
Apparel Retail · 110 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Apparel Retail median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Apparel Retail stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Industria de Diseño Textil, S.A ITX | 246.10 PLN | 189.40 PLN | -23% |
| The TJX Companies, Inc TJX | $136.83 | $84.95 | -38% |
| Fast Retailing Co 6288 | HK$37.20 | HK$15.24 | -59% |
| Ross Stores, Inc ROST | $236.27 | $118.41 | -50% |
| Burlington Stores, Inc BURL | $353.63 | $143.65 | -59% |
| Trent Limited TRENT | ₹2,990 | ₹709.49 | -76% |
| lululemon athletica inc., LULU | $116.35 | $299.63 | +158% |
| Aritzia Inc ATZ | C$140.07 | C$70.30 | -50% |
| The Gap, Inc GAP | $20.60 | $36.44 | +77% |
| Urban Outfitters, Inc URBN | $82.95 | $92.88 | +12% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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