CATY Stock Analysis: Cathay General Bancorp | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 3.993m USD | 12M Return: 26.7% | US1491501045 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 28.3M
EPS Trend: -9.9%
Qual. Beats: 3
Rev. Trend: 66.8%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Cathay General Bancorp (NASDAQ: CATY) is the holding company for Cathay Bank, a U.S.-based commercial bank serving individuals, professionals, and small to medium-sized businesses. Founded in 1962 and headquartered in Los Angeles, California, the company was previously known as Cathay Bancorp, Inc. before adopting its current name in November 2003. Its deposit offerings include savings, checking, money market, certificates of deposit, IRAs, and public funds deposits, while its lending portfolio spans commercial real estate, commercial, SBA, residential mortgage, construction, home equity, and consumer installment loans. The bank also provides trade financing, letters of credit, foreign exchange, wire transfers, safe deposit, ATM, internet banking, and investment and advisory services covering stocks, bonds, mutual funds, insurance, and annuities.
As a bank holding company in the Regional Banks sub-industry, Cathay General Bancorp operates under U.S. banking regulations overseen by the Federal Reserve and state banking authorities. Its mid-cap status and long-standing IPO history (since 1990) position it among the established community and regional commercial lenders serving the U.S. market.
- Net interest margin compression as Fed cuts rates
- CRE loan portfolio exposure to California office market
- Asian American commercial deposit growth drives funding base
- SBA loan originations expand amid small business demand
| Net Income: 347.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 0.80 > 1.0 |
| NWC/Revenue: -1.29k% < 20% (prev -1.30k%; Δ 5.30% < -1%) |
| CFO/TA 0.02 > 3% & CFO 541.2m > Net Income 347.3m |
| Net Debt (-2.82b) to EBITDA (477.1m): -5.91 < 3 |
| Current Ratio: 0.15 > 1.5 & < 3 |
| Outstanding Shares: last quarter (67.3m) vs 12m ago -4.11% < -2% |
| Gross Margin: 57.16% > 18% (prev 51.28%; Δ 5.88% > 0.5%) |
| Asset Turnover: 5.75% > 50% (prev 5.79%; Δ -0.04% > 0%) |
| Interest Coverage Ratio: 0.86 > 6 (EBIT TTM 461.2m / Interest Expense TTM 537.6m) |
| A: -0.73 (Total Current Assets 3.10b - Total Current Liabilities 21.1b) / Total Assets 24.7b |
| B: 0.12 (Retained Earnings 3.04b / Total Assets 24.7b) |
| C: 0.02 (EBIT TTM 461.2m / Avg Total Assets 24.2b) |
| D: 0.14 (Book Value of Equity 3.05b / Total Liabilities 21.6b) |
| Altman-Z'' = -4.10 = D |
| DSRI: 0.97 (Receivables 94.7m/96.6m, Revenue 1.39b/1.37b) |
| GMI: 0.90 (GM 51.28% / 57.16%) |
| AQI: 0.96 (AQ_t 0.87 / AQ_t-1 0.90) |
| SGI: 1.01 (Revenue 1.39b / 1.37b) |
| TATA: -0.01 (NI 347.3m - CFO 541.2m) / TA 24.7b) |
| Beneish M = -3.16 (Cap -4..+1) = AA |
As of October 06, 2026, the stock is trading at USD 60.48 with a total of 514,514 shares traded. Over the past week, the price has changed by -0.43%, over one month by -2.23%, over three months by -2.71% and over the past year by +26.74%.
Current recommended Stop Loss: 59.10 (which is 2.3% or 1.2 ATR below the current price).
Cathay General Bancorp has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold CATY.
- StrongBuy: 2
- Buy: 0
- Hold: 2
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 65 | 7.5% |
P/E Trailing = 11.9006
P/E Forward = 10.101
P/S = 5.022
P/B = 1.3242
P/EG = 1.3291
Revenue TTM = 1.39b USD
EBIT TTM = 461.2m USD
EBITDA TTM = 477.1m USD
Long Term Debt = 119.1m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 189.4m USD (from shortLongTermDebtTotal, last quarter) + Leases 35.1m
Net Debt = -2.82b USD (calculated: Debt 189.4m - CCE 3.01b)
Enterprise Value = 1.17b USD (3.99b + Debt 189.4m - CCE 3.01b)
Interest Coverage Ratio = 0.86 (Ebit TTM 461.2m / Interest Expense TTM 537.6m)
EV/FCF = 2.20x (Enterprise Value 1.17b / FCF TTM 534.0m)
FCF Yield = 45.53% (FCF TTM 534.0m / Enterprise Value 1.17b)
FCF Margin = 38.39% (FCF TTM 534.0m / Revenue TTM 1.39b)
Net Margin = 24.97% (Net Income TTM 347.3m / Revenue TTM 1.39b)
Gross Margin = 57.16% ((Revenue TTM 1.39b - Cost of Revenue TTM 595.8m) / Revenue TTM)
Gross Margin QoQ = 60.50% (prev 54.97%)
Tobins Q-Ratio = 0.05 (Enterprise Value 1.17b / Total Assets 24.7b)
Interest Expense / Debt = 283.9% (Interest Expense 537.6m / Debt 189.4m)
Taxrate = 20.34% (88.7m / 435.9m)
NOPAT = 367.4m (EBIT 461.2m * (1 - 20.34%))
Current Ratio = 0.15 (Total Current Assets 3.10b / Total Current Liabilities 21.1b)
Debt / Equity = 0.06 (Debt 189.4m / totalStockholderEquity, last quarter 3.05b)
Debt / EBITDA = -5.91 (Net Debt -2.82b / EBITDA 477.1m)
Debt / FCF = -5.28 (Net Debt -2.82b / FCF TTM 534.0m)
Total Stockholder Equity = 2.97b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.44% (Net Income 347.3m / Total Assets 24.7b)
RoE = 11.71% (Net Income TTM 347.3m / Total Stockholder Equity 2.97b)
RoCE = 14.95% (EBIT 461.2m / Capital Employed (Equity 2.97b + L.T.Debt 119.1m))
RoIC = 10.47% (NOPAT 367.4m / Invested Capital 3.51b)
WACC = 8.26% (E(3.99b)/V(4.18b) * Re(8.65%) + (debt cost/tax rate unavailable))
Discount Rate = 8.65% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -99.06 | Cagr: -3.53%
[DCF] Terminal Value 77.97% ; FCFF base≈450.4m ; Y1≈516.3m ; Y5≈759.8m
[DCF] Fair Price = 213.7 (EV 11.4b - Net Debt -2.82b = Equity 14.3b / Shares 66.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -9.89 | EPS CAGR: -0.93% | SUE: 1.05 | # QB: 3
Revenue Correlation: 66.84 | Revenue CAGR: 2.72% | SUE: 0.60 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.45 | Chg30d=+0.78% | Revisions=+62% | Analysts=6
EPS current Year (2026-12-31): EPS=5.56 | Chg30d=+0.52% | Revisions=+38% | GrowthEPS=+22.4% | GrowthRev=+9.0%
EPS next Year (2027-12-31): EPS=5.94 | Chg30d=+0.17% | Revisions=+0% | GrowthEPS=+6.9% | GrowthRev=+4.1%
[Analyst] Revisions Ratio: +47% (up=11, down=3)