CATO

Company Overview — What Does CATO CORP Do?

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. As of January 29, 2022, the company operated 1,311 stores in 32 states. It also provides credit card services to its customers, as well as layaway plans for customers who agree to make periodic payments. The company was incorporated in 1946 and is headquartered in Charlotte, North Carolina. CATO CORP (CATO) is classified as a micro-cap stock in the Consumer Discretionary sector, specifically within the Retail industry. The company is led by CEO John P. Derham Cato and employs approximately 7,500 people, headquartered in CHARLOTTE, North Carolina. With a market capitalization of $56M, CATO is one of the notable companies in the Consumer Discretionary sector.

CATO CORP (CATO) Stock Rating — Reduce (April 2026)

As of April 2026, CATO CORP receives a Reduce rating with a composite score of 36.8/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.CATO ranks #3,033 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, CATO CORP ranks #321 of 442 stocks, placing it in the lower half of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

CATO Stock Price and 52-Week Range

CATO CORP (CATO) currently trades at $2.96. The stock lost $0.09 (3.0%) in the most recent trading session. The 52-week high for CATO is $4.92, which means the stock is currently trading -39.8% from its annual peak. The 52-week low is $2.19, putting the stock 35.2% above its annual trough. Recent trading volume was 20K shares, suggesting relatively thin trading activity.

Is CATO Overvalued or Undervalued? — Valuation Analysis

CATO CORP (CATO) carries a value factor score of 22/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The price-to-book ratio stands at 0.38x, versus the sector average of 1.99x. The price-to-sales ratio is 0.09x, compared to 0.27x for the average Consumer Discretionary stock.

At current multiples, CATO CORP trades at a premium to most Consumer Discretionary peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.

CATO CORP Profitability — ROE, Margins, and Quality Score

CATO CORP (CATO) earns a quality factor score of 42/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -6.4%, compared to the Consumer Discretionary sector average of 6.2%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -2.4% versus the sector average of 2.5%.

On a margin basis, CATO CORP reports gross margins of 33.7%, compared to 36.9% for the sector. The operating margin is -2.5% (sector: 3.8%). Net profit margin stands at -2.0%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at -7.8% on a trailing basis, compared to 3.3% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

CATO Debt, Balance Sheet, and Financial Health

CATO CORP has a debt-to-equity ratio of 168.0%, compared to the Consumer Discretionary sector average of 89.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.24x, suggesting adequate working capital coverage.

CATO has a beta of 0.87, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for CATO CORP is 42/100, reflecting average volatility within the normal range for its sector.

CATO CORP Revenue and Earnings History — Quarterly Trend

In TTM 2026, CATO CORP reported revenue of $648M and earnings per share (EPS) of $-0.31. Net income for the quarter was $-10M. Gross margin was 33.7%. Operating income came in at $-14M.

In FY 2026, CATO CORP reported revenue of $654M and earnings per share (EPS) of $-0.31. Net income for the quarter was $-6M. Gross margin was 34.0%. Revenue grew 0.6% year-over-year compared to FY 2025. Operating income came in at $-13M.

In Q3 2026, CATO CORP reported revenue of $155M and earnings per share (EPS) of $-0.28. Net income for the quarter was $-5M. Gross margin was 32.7%. Revenue grew 6.3% year-over-year compared to Q3 2025. Operating income came in at $-8M.

In Q2 2026, CATO CORP reported revenue of $177M and earnings per share (EPS) of $0.35. Net income for the quarter was $7M. Gross margin was 36.9%. Revenue grew 4.7% year-over-year compared to Q2 2025. Operating income came in at $6M.

Over the past 8 quarters, CATO CORP has demonstrated a growth trajectory, with revenue expanding from $169M to $648M. Investors analyzing CATO stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

CATO Dividend Yield and Income Analysis

CATO CORP (CATO) does not currently pay a dividend. This is common among smaller companies in the Retail industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Consumer Discretionary dividend stocks may want to explore other Consumer Discretionary stocks or use the stock screener to filter by dividend yield.

CATO Momentum and Technical Analysis Profile

CATO CORP (CATO) has a momentum factor score of 27/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 36/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 63/100 reflects moderate short selling activity.

CATO vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison

Within the Consumer Discretionary sector, CATO CORP (CATO) ranks #321 out of 442 stocks based on the Blank Capital composite score. This places CATO in the lower half of all Consumer Discretionary stocks in our coverage universe. Key competitors and sector peers include MONARCH CASINO & RESORT INC (MCRI) with a score of 50.5/100, CASEYS GENERAL STORES INC (CASY) with a score of 57.3/100, INGLES MARKETS INC (IMKTA) with a score of 51.0/100, FIVE BELOW, INC (FIVE) with a score of 51.6/100, and TARGET CORP (TGT) with a score of 52.6/100.

Comparing CATO against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CATO vs S&P 500 (SPY) comparison to assess how CATO CORP stacks up against the broader market across all factor dimensions.

CATO Next Earnings Date

No upcoming earnings date has been announced for CATO CORP (CATO) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy CATO? — Investment Thesis Summary

The quantitative profile for CATO CORP suggests caution. The value score of 22/100 indicates premium valuation. Momentum is weak at 27/100, a headwind for near-term performance.

In summary, CATO CORP (CATO) earns a Reduce rating with a composite score of 36.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CATO stock.

Related Resources for CATO Investors

Explore more research and tools: CATO vs S&P 500 comparison, top Consumer Discretionary stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare CATO head-to-head with peers: CATO vs MCRI, CATO vs CASY, CATO vs IMKTA.