The Cato Corporation (CATO) Fair Value & Analysis
Consumer Cyclical · US · Market cap $65.9M
The Cato Corporation
CATO · US
Fair value as of: Jul 15, 2026
From 1 valuation models · updated today
Fair value updated Jul 15, 2026 — revised from $34.58 to $5.79 (−83.3%) since Jun 24, 2026. Share price +0.9% over the past month.
Price vs Fair Value (12 months)
12‑month range $2.66 – $4.72 · fair‑value band $4.32 – $8.65 · the $3.23 price screens below the $5.79 fair value. As of Jul 15, 2026.
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The Cato Corporation (CATO) currently trades at $3.23, while our model-based Fair Value estimate is $5.79 — implying the stock looks roughly 79.3% undervalued today. We read business quality at 51/100 (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 Jul 15, 2026
Our scenario range runs from $4.32 (bear case) to $8.65 (bull case); at $3.23, the current price sits below that range. The share trades about 34% below its 52-week high and 25% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -45% fair-value upside — at 79%, CATO screens cheaper than that median.
Key figures & financial health
More key figures
Figures from reported company fundamentals (EODHD) · as of Jul 15, 2026. TTM = trailing twelve months.
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. 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.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
The 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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10 more Apparel Retail stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).
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|---|---|---|---|
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| Ross Stores, Inc ROST | $236.97 | $118.41 | -50% |
| NEXT plc NXGPF | $190.69 | $200.58 | +5% |
| Burlington Stores, Inc BURL | $327.01 | $112.12 | -66% |
| Trent Limited TRENT | ₹2,838 | ₹553.27 | -81% |
| lululemon athletica inc., 33L | €92.70 | €255.91 | +176% |
| Aritzia Inc ATZAF | $110.56 | $60.44 | -45% |
| The Gap, Inc GAP | $20.62 | $37.12 | +80% |
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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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Not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.