IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 57.6GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.0%
Sector: 8.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, CATHAY GENERAL BANCORP (CATY) receives a "Hold" rating with a composite score of 53.0/100, ranked #928 out of 4446 stocks. Key factor scores: Quality 58/100, Value 74/100, Momentum 51/100. This is quantitative analysis only — not investment advice.
CATHAY GENERAL BANCORP (CATY) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does CATHAY GENERAL BANCORP Do?
Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. It also provides loan products, such as commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, as well as installment loans to individuals for household, and other consumer expenditures. In addition, the company offers trade financing, letter of credit, wire transfer, forward currency spot and forward contract, traveler's check, safe deposit, night deposit, social security payment deposit, collection, bank-by-mail, drive-up and walk-up window, automatic teller machine, Internet banking, investment, and other customary bank services, as well as securities and insurance products. As of March 1, 2022, it operated 31 branches in Southern California, 16 branches in Northern California, 10 branches in New York, four branches in Washington, two branches in Illinois, and two branches in Texas, as well as one branch each in Maryland, Massachusetts, Nevada, and New Jersey, and Hong Kong; and a representative office each in Beijing, Taipei, and Shanghai. The company was founded in 1962 and is headquartered in Los Angeles, California. CATHAY GENERAL BANCORP (CATY) is classified as a mid-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Chang M. Liu and employs approximately 1,180 people, headquartered in El Monte, California. With a market capitalization of $3.4B, CATY is one of the notable companies in the Financials sector.
CATHAY GENERAL BANCORP (CATY) Stock Rating — Hold (April 2026)
As of April 2026, CATHAY GENERAL BANCORP receives a Hold rating with a composite score of 53.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.CATY ranks #928 out of 4,446 stocks in our coverage universe. Within the Financials sector, CATHAY GENERAL BANCORP ranks #285 of 891 stocks, placing it in the upper half of its Financials 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%).
CATY Stock Price and 52-Week Range
CATHAY GENERAL BANCORP (CATY) currently trades at $53.47. The stock lost $0.41 (0.8%) in the most recent trading session. The 52-week high for CATY is $54.99, which means the stock is currently trading -2.8% from its annual peak. The 52-week low is $36.05, putting the stock 48.3% above its annual trough. Recent trading volume was 339K shares, suggesting relatively thin trading activity.
Is CATY Overvalued or Undervalued? — Valuation Analysis
CATHAY GENERAL BANCORP (CATY) carries a value factor score of 74/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 11.81x, compared to the Financials sector average of 14.88x — a discount of 21%. The price-to-book ratio stands at 1.18x, versus the sector average of 1.22x. The price-to-sales ratio is 64.14x, compared to 0.90x for the average Financials stock. On an enterprise value basis, CATY trades at 10.05x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, CATHAY GENERAL BANCORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
CATHAY GENERAL BANCORP Profitability — ROE, Margins, and Quality Score
CATHAY GENERAL BANCORP (CATY) earns a quality factor score of 58/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 10.0%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.2% versus the sector average of 1.2%.
On a margin basis, CATHAY GENERAL BANCORP reports gross margins of 0.0%. The operating margin is 663.6% (sector: 21.8%). Net profit margin stands at 545.6%, versus 17.7% for the average Financials stock. Revenue growth is running at 13.1% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
CATY Debt, Balance Sheet, and Financial Health
CATHAY GENERAL BANCORP has a debt-to-equity ratio of 4.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.14x, suggesting adequate working capital coverage. Total debt on the balance sheet is $119M. Cash and equivalents stand at $166M.
CATY has a beta of 0.90, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for CATHAY GENERAL BANCORP is 80/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
CATHAY GENERAL BANCORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, CATHAY GENERAL BANCORP reported revenue of $54M and earnings per share (EPS) of $4.55. Net income for the quarter was $292M. Gross margin was 0.0%. Operating income came in at $355M.
In FY 2025, CATHAY GENERAL BANCORP reported revenue of $54M and earnings per share (EPS) of $4.55. Net income for the quarter was $315M. Revenue grew 2.9% year-over-year compared to FY 2024. Operating income came in at $390M.
In Q3 2025, CATHAY GENERAL BANCORP reported revenue of $15M and earnings per share (EPS) of $1.13. Net income for the quarter was $78M. Revenue grew 5.2% year-over-year compared to Q3 2024. Operating income came in at $94M.
In Q2 2025, CATHAY GENERAL BANCORP reported revenue of $12M and earnings per share (EPS) of $1.11. Net income for the quarter was $77M. Revenue grew -4.4% year-over-year compared to Q2 2024. Operating income came in at $96M.
Over the past 8 quarters, CATHAY GENERAL BANCORP has demonstrated a growth trajectory, with revenue expanding from $13M to $54M. Investors analyzing CATY stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CATY Dividend Yield and Income Analysis
CATHAY GENERAL BANCORP (CATY) does not currently pay a dividend. This is common among smaller companies in the Banking industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Financials dividend stocks may want to explore other Financials stocks or use the stock screener to filter by dividend yield.
CATY Momentum and Technical Analysis Profile
CATHAY GENERAL BANCORP (CATY) has a momentum factor score of 51/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 13/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
CATY vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing CATY against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CATY vs S&P 500 (SPY) comparison to assess how CATHAY GENERAL BANCORP stacks up against the broader market across all factor dimensions.
CATY Next Earnings Date
No upcoming earnings date has been announced for CATHAY GENERAL BANCORP (CATY) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CATY? — Investment Thesis Summary
CATHAY GENERAL BANCORP presents a balanced picture with arguments on both sides. The value score of 74/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 80/100) reduces downside risk.
In summary, CATHAY GENERAL BANCORP (CATY) earns a Hold rating with a composite score of 53.0/100 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 CATY stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
CATHAY GENERAL BANCORP (CATY) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Cathay General Bancorp (CATY) receives a Hold rating, reflecting a balanced view of its financial performance and valuation. While the bank exhibits strong profitability metrics and trades at a discount to its peers, its relatively low investment score and sensitivity to macroeconomic conditions warrant a cautious approach. The key takeaway is that CATY presents a value opportunity, but potential investors should carefully consider the risks associated with its growth prospects and exposure to specific geographic markets.
CATY's impressive efficiency, as demonstrated by its high operating and net margins, is a significant strength. However, the bank's future performance is closely tied to the economic health of the communities it serves, particularly within the Asian-American demographic. The Hold rating acknowledges both the potential upside from CATY's attractive valuation and the downside risks stemming from its growth strategy and market concentration.
Business Strategy & Overview
Cathay General Bancorp operates primarily through its subsidiary, Cathay Bank, providing commercial banking services to individuals, professionals, and small to medium-sized businesses. The bank's core strategy revolves around serving the Asian-American community, leveraging its cultural understanding and language capabilities to build strong customer relationships. This targeted approach allows CATY to differentiate itself from larger, more generalized banks.
CATY generates revenue primarily through interest income from loans, including commercial mortgages, commercial loans, SBA loans, and residential mortgages. Additionally, the bank offers a range of deposit products, such as checking accounts, money market accounts, and certificates of deposit, which contribute to its funding base. Fee income from services like trade financing, wire transfers, and safe deposit boxes also plays a role in the bank's overall revenue stream.
Strategically, CATY focuses on expanding its branch network in key markets with significant Asian-American populations. The bank's presence in major metropolitan areas like Los Angeles, New York, and San Francisco allows it to tap into a large and growing customer base. Furthermore, CATY maintains representative offices in Beijing, Taipei, and Shanghai, facilitating cross-border transactions and serving customers with international business interests.
CATY's product pipeline is not explicitly detailed in the provided data, but it can be inferred that the bank continuously refines its offerings to meet the evolving needs of its target market. This likely includes developing new digital banking solutions, expanding its range of loan products, and enhancing its wealth management services. The bank's ability to adapt to changing customer preferences and technological advancements will be crucial for its long-term success.
In the broader industry context, CATY operates in a highly competitive banking landscape. It faces competition from both large national banks and smaller community banks, as well as non-bank financial institutions. To succeed, CATY must continue to leverage its niche focus, provide superior customer service, and maintain a strong capital base.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
13.1%
Sector: 9.4%
+39% VS SCTR
Economic Moat Analysis
Cathay General Bancorp's economic moat can be classified as Narrow. The bank's competitive advantage stems primarily from its strong brand recognition and deep relationships within the Asian-American community. This niche focus creates a degree of customer loyalty and reduces the likelihood of customers switching to competing banks.
The network effect plays a minor role in CATY's moat. As the bank expands its branch network and strengthens its presence in key markets, it becomes more attractive to potential customers within the Asian-American community. This increased customer base, in turn, enhances the bank's ability to offer a wider range of services and attract even more customers.
Switching costs are relatively low in the banking industry, which limits the strength of CATY's moat. Customers can easily transfer their accounts to other banks if they find better rates or services. However, CATY's cultural understanding and language capabilities create a degree of stickiness, as some customers may prefer to bank with an institution that caters specifically to their needs.
Intangible assets, such as brand reputation and customer relationships, are a key component of CATY's moat. The bank has built a strong reputation for providing personalized service and understanding the unique financial needs of the Asian-American community. This reputation is a valuable asset that is difficult for competitors to replicate.
Cost advantages and efficient scale are not significant factors in CATY's moat. The bank's operating expenses are likely comparable to those of other community banks. While CATY benefits from economies of scale as it grows, these advantages are not substantial enough to create a significant cost advantage over its competitors.
Overall, CATY's narrow moat provides a degree of protection against competition, but it is not impenetrable. The bank must continue to invest in its brand, customer relationships, and service offerings to maintain its competitive advantage in the long term.
Financial Health & Profitability
Cathay General Bancorp exhibits a mixed financial profile. The company's revenue has shown consistent growth, with FY2025 revenue at $53.79 million compared to $43.91 million in FY2023, representing a solid upward trend. However, the revenue figure itself is relatively small compared to the market capitalization, suggesting a high degree of efficiency in converting revenue to profits.
Profitability metrics are exceptionally strong. The operating margin consistently exceeds 500%, and the net margin is similarly high, far surpassing the sector averages. This indicates that CATY is highly efficient in managing its expenses and generating profits from its operations. The ROE of 10.0% is also above the sector average of 8.5%, further highlighting the bank's strong profitability.
The balance sheet appears healthy, with total debt of $119.14 million and total cash of $166.17 million. The current ratio of 1.14 suggests that the bank has sufficient liquid assets to cover its short-term liabilities. The debt-to-equity ratio of 4.00 is significantly lower than the sector average of 115.00, indicating a conservative approach to leverage.
However, the negative free cash flow of $-124.16 million is a concern. While the provided data does not offer insights into the drivers of this negative FCF, it warrants further investigation. It could be due to increased investments in growth initiatives or changes in working capital management.
Analyzing the quarterly financial history reveals a consistent pattern of strong profitability. Both net income and EPS have generally increased over the past few years, demonstrating the bank's ability to generate sustainable earnings growth. The operating margin has fluctuated but remains consistently high, indicating strong cost control.
Overall, CATY's financial health is characterized by strong profitability, a healthy balance sheet, and consistent revenue growth. However, the negative free cash flow and relatively small revenue base warrant further scrutiny. The bank's ability to maintain its strong profitability and generate positive free cash flow will be crucial for its long-term financial health.
Valuation Assessment
Cathay General Bancorp's valuation presents a compelling case for value investors. The company's P/E ratio of 10.5x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the EV/EBITDA ratio of 2.1x is also well below the sector average of 3.5x, further supporting the undervaluation thesis.
These valuation metrics indicate that investors are not fully recognizing the bank's strong profitability and growth potential. The company's high operating and net margins, coupled with its consistent revenue growth, warrant a higher valuation multiple. The discount to the sector average may be due to concerns about the bank's niche focus or its exposure to specific geographic markets.
However, it is important to consider the company's free cash flow, which is currently negative. This could be a factor weighing on the stock's valuation. Investors may be hesitant to pay a premium for a company that is not generating positive free cash flow.
Despite the negative FCF, CATY's strong profitability and healthy balance sheet provide a solid foundation for future growth. The bank's ability to generate consistent earnings and maintain a conservative approach to leverage should reassure investors.
Compared to its historical valuation, CATY's current multiples are also relatively low. This suggests that the stock may be trading at a discount to its intrinsic value. However, it is important to note that past performance is not necessarily indicative of future results.
Overall, CATY's valuation appears attractive, particularly when compared to its sector peers. The stock's low P/E and EV/EBITDA ratios suggest that it is undervalued. However, investors should carefully consider the company's negative free cash flow and potential risks before making an investment decision.
Risk & Uncertainty
Cathay General Bancorp faces several specific risks that could impact its financial performance and valuation. One of the primary risks is its concentration in the Asian-American market. While this niche focus provides a competitive advantage, it also makes the bank vulnerable to economic downturns or demographic shifts within this specific community. A decline in the economic health of the Asian-American population could negatively impact CATY's loan portfolio and deposit base.
Another risk is the bank's exposure to specific geographic markets, particularly California and New York. These states are subject to unique economic and regulatory challenges. A downturn in the real estate market or changes in state regulations could adversely affect CATY's business.
Competition from larger national banks and smaller community banks also poses a risk. These competitors may offer similar products and services at lower prices, potentially eroding CATY's market share. The bank must continue to differentiate itself through superior customer service and a deep understanding of the Asian-American community.
Interest rate risk is another significant concern. Changes in interest rates can impact CATY's net interest margin, which is the difference between the interest income it earns on loans and the interest expense it pays on deposits. A rapid increase in interest rates could squeeze the bank's margins and reduce its profitability.
Finally, regulatory risk is always a factor for banks. Changes in banking regulations could increase CATY's compliance costs or restrict its ability to operate. The bank must stay abreast of regulatory developments and adapt its business practices accordingly.
Bulls Say / Bears Say
The Bull Case
BULL VIEWCATY's strong profitability metrics, including high operating and net margins, demonstrate its superior efficiency and ability to generate earnings.
BULL VIEWThe bank's low P/E and EV/EBITDA ratios suggest that the stock is undervalued and offers a compelling opportunity for value investors.
BULL VIEWCATY's focus on the growing Asian-American market provides a sustainable competitive advantage and positions the bank for long-term growth.
The Bear Case
BEAR VIEWCATY's negative free cash flow raises concerns about its ability to fund future growth and maintain its dividend payments.
BEAR VIEWThe bank's concentration in the Asian-American market and specific geographic regions makes it vulnerable to economic downturns and demographic shifts.
BEAR VIEWIncreased competition from larger national banks and non-bank financial institutions could erode CATY's market share and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score CATY and 4,400+ other equities.
CATHAY GENERAL BANCORP exhibits a 1803% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.2%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
663.6%
Sector: 21.8%
Net Margin
Bottom-line profitability
545.6%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Cathay General Bancorp to Announce First Quarter 2026 Financial Results
LOS ANGELES, April 09, 2026--Cathay General Bancorp (Nasdaq: CATY), the holding company for Cathay Bank, is scheduled to announce its first quarter 2026 financial results after the markets close on Wednesday, April 22, 2026.
