(CATY) Cathay General Bancorp - Overview
Sector: Financial Services | Industry: Banks - Regional | Exchange: NASDAQ (USA) | Market Cap: 3.838m USD | Total Return: 36.7% in 12m
Avg Turnover: 25.3M
EPS Trend: -41.7%
Qual. Beats: 2
Rev. Trend: 72.8%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Supp Ema20, Confidence
Cathay General Bancorp (CATY) is a regional bank holding company headquartered in Los Angeles, California, operating primarily through Cathay Bank. Founded in 1962, the institution provides a broad range of financial services including commercial and residential lending, deposit products, and trade financing to individuals and small-to-medium-sized businesses.
The company’s business model emphasizes commercial real estate and Small Business Administration (SBA) loans, serving as a critical credit provider for niche commercial sectors. Regional banks like CATY often focus on relationship-based banking, which allows them to capture market share in specific geographic or demographic segments that larger national institutions may overlook.
Asset quality and interest rate sensitivity are key metrics to evaluate when reviewing ValueRay for deeper fundamental insights. The firm also maintains a suite of wealth management services, including investment advisory, insurance products, and foreign currency contracts, diversifying its revenue beyond traditional net interest income.
- Commercial real estate loan concentration exposes balance sheet to property market volatility
- Net interest margin fluctuates based on Federal Reserve interest rate trajectory
- Asian-American market demographics drive core deposit growth and specialized lending demand
- Credit quality performance in commercial loan portfolio impacts provision for loan losses
- Expansion of trade finance services correlates with trans-Pacific economic activity levels
| Net Income: 332.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 0.04 > 1.0 |
| NWC/Revenue: -1.48k% < 20% (prev -1.28k%; Δ -196.3% < -1%) |
| CFO/TA 0.02 > 3% & CFO 368.0m > Net Income 332.5m |
| Net Debt (56.8m) to EBITDA (446.6m): 0.13 < 3 |
| Current Ratio: 0.01 > 1.5 & < 3 |
| Outstanding Shares: last quarter (67.4m) vs 12m ago -4.66% < -2% |
| Gross Margin: 55.74% > 18% (prev 0.50%; Δ 5.52k% > 0.5%) |
| Asset Turnover: 5.84% > 50% (prev 5.96%; Δ -0.11% > 0%) |
| Interest Coverage Ratio: 0.78 > 6 (EBITDA TTM 446.6m / Interest Expense TTM 552.8m) |
| A: -0.85 (Total Current Assets 230.1m - Total Current Liabilities 20.7b) / Total Assets 24.0b |
| B: 0.12 (Retained Earnings 2.97b / Total Assets 24.0b) |
| C: 0.02 (EBIT TTM 430.7m / Avg Total Assets 23.6b) |
| D: 0.14 (Book Value of Equity 2.93b / Total Liabilities 21.1b) |
| Altman-Z'' = -4.91 = D |
| DSRI: 0.99 (Receivables 94.6m/95.8m, Revenue 1.38b/1.38b) |
| GMI: 0.90 (GM 55.74% / 50.02%) |
| AQI: 1.09 (AQ_t 0.99 / AQ_t-1 0.91) |
| SGI: 1.00 (Revenue 1.38b / 1.38b) |
| TATA: -0.00 (NI 332.5m - CFO 368.0m) / TA 24.0b) |
| Beneish M = -3.08 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 57.25 with a total of 349,714 shares traded.
Over the past week, the price has changed by +2.99%,
over one month by +6.49%,
over three months by +12.52% and
over the past year by +36.72%.
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 | 57.4 | 0.3% |
P/E Forward = 10.101
P/S = 4.987
P/B = 1.285
P/EG = 1.3291
Revenue TTM = 1.38b USD
EBIT TTM = 430.7m USD
EBITDA TTM = 446.6m USD
Long Term Debt = 132.7m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 192.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 36.6m
Net Debt = 56.8m USD (calculated: Debt 192.3m - CCE 135.5m)
Enterprise Value = 3.89b USD (3.84b + Debt 192.3m - CCE 135.5m)
Interest Coverage Ratio = 0.78 (Ebit TTM 430.7m / Interest Expense TTM 552.8m)
EV/FCF = 10.90x (Enterprise Value 3.89b / FCF TTM 357.2m)
FCF Yield = 9.17% (FCF TTM 357.2m / Enterprise Value 3.89b)
FCF Margin = 25.88% (FCF TTM 357.2m / Revenue TTM 1.38b)
Net Margin = 24.09% (Net Income TTM 332.5m / Revenue TTM 1.38b)
Gross Margin = 55.74% ((Revenue TTM 1.38b - Cost of Revenue TTM 610.9m) / Revenue TTM)
Gross Margin QoQ = 54.97% (prev 61.80%)
Tobins Q-Ratio = 0.16 (Enterprise Value 3.89b / Total Assets 24.0b)
Interest Expense / Debt = 287.5% (Interest Expense 552.8m / Debt 192.3m)
Taxrate = 20.98% (23.1m / 110.0m)
NOPAT = 340.3m (EBIT 430.7m * (1 - 20.98%))
Current Ratio = 0.01 (Total Current Assets 230.1m / Total Current Liabilities 20.7b)
Debt / Equity = 0.06 (Debt 192.3m / totalStockholderEquity, last quarter 2.99b)
Debt / EBITDA = 0.13 (Net Debt 56.8m / EBITDA 446.6m)
Debt / FCF = 0.16 (Net Debt 56.8m / FCF TTM 357.2m)
Total Stockholder Equity = 2.93b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.41% (Net Income 332.5m / Total Assets 24.0b)
RoE = 11.37% (Net Income TTM 332.5m / Total Stockholder Equity 2.93b)
RoCE = 14.08% (EBIT 430.7m / Capital Employed (Equity 2.93b + L.T.Debt 132.7m))
RoIC = 10.09% (NOPAT 340.3m / Invested Capital 3.37b)
WACC = 8.92% (E(3.84b)/V(4.03b) * Re(9.37%) + (debt cost/tax rate unavailable))
Discount Rate = 9.37% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -3.44%
[DCF] Terminal Value 74.35% ; FCFF base≈348.1m ; Y1≈369.2m ; Y5≈436.4m
[DCF] Fair Price = 90.28 (EV 6.11b - Net Debt 56.8m = Equity 6.05b / Shares 67.0m; r=8.92% [WACC]; 5y FCF grow 6.78% → 2.50% )
EPS Correlation: -41.69 | EPS CAGR: -4.44% | SUE: 2.06 | # QB: 2
Revenue Correlation: 72.84 | Revenue CAGR: 5.21% | SUE: 0.53 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.35 | Chg30d=+4.83% | Revisions=+33% | Analysts=5
EPS next Quarter (2026-09-30): EPS=1.40 | Chg30d=+2.19% | Revisions=+33% | Analysts=5
EPS current Year (2026-12-31): EPS=5.47 | Chg30d=+3.75% | Revisions=+56% | GrowthEPS=+20.5% | GrowthRev=+7.8%
EPS next Year (2027-12-31): EPS=5.90 | Chg30d=+3.29% | Revisions=+43% | GrowthEPS=+7.8% | GrowthRev=+5.2%
[Analyst] Revisions Ratio: +56%