CATY Stock Analysis: Cathay General Bancorp | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 4.177m USD | 12M Return: 33.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 31.0M
EPS Trend: -54.9%
Qual. Beats: 2
Rev. Trend: 72.8%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 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 a Los Angeles-based bank holding company that operates Cathay Bank, providing a full suite of commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. The company offers traditional deposit products such as savings, checking, money market, certificates of deposit, IRAs, and public funds deposits, alongside a diversified lending portfolio that includes commercial real estate loans, commercial loans, Small Business Administration (SBA) loans, residential mortgages, construction loans, home equity lines of credit, and consumer installment loans. Beyond core banking, Cathay provides trade financing, letters of credit, foreign currency spot and forward contracts, safe deposit services, internet banking, and investment products such as stocks, bonds, mutual funds, insurance, annuities, and advisory services. Founded in 1962 and renamed to its current form in November 2003, the bank has historical roots in serving Asian-American communities, which is reflected in its strong emphasis on trade finance and cross-border banking services catering to importers, exporters, and businesses with ties to Asia-Pacific markets.
- Net interest margin expands on higher interest rates
- Commercial real estate loan portfolio credit quality weakens
- Capital return program accelerates through dividends and buybacks
| 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 (454.2m): 0.12 < 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 50.02%; Δ 5.72% > 0.5%) |
| Asset Turnover: 5.84% > 50% (prev 5.96%; Δ -0.11% > 0%) |
| Interest Coverage Ratio: 0.78 > 6 (EBIT TTM 430.7m / 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 2.99b / Total Liabilities 21.1b) |
| Altman-Z'' = -4.90 = D |
| DSRI: 0.99 (Receivables 94.6m/95.8m, Revenue 1.38b/1.38b) |
| GMI: 0.90 (GM 50.02% / 55.74%) |
| 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 July 08, 2026, the stock is trading at USD 61.46 with a total of 606,204 shares traded. Over the past week, the price has changed by -0.60%, over one month by +5.26%, over three months by +20.11% and over the past year by +33.56%.
Current recommended Stop Loss: 59.90 (which is 2.5% 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 | 58.9 | -4.2% |
P/E Trailing = 12.8474
P/E Forward = 10.101
P/S = 5.4278
P/B = 1.3979
P/EG = 1.3291
Revenue TTM = 1.38b USD
EBIT TTM = 430.7m USD
EBITDA TTM = 454.2m 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 = 4.23b USD (4.18b + Debt 192.3m - CCE 135.5m)
Interest Coverage Ratio = 0.78 (Ebit TTM 430.7m / Interest Expense TTM 552.8m)
EV/FCF = 11.85x (Enterprise Value 4.23b / FCF TTM 357.2m)
FCF Yield = 8.44% (FCF TTM 357.2m / Enterprise Value 4.23b)
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 = 0.18 (Enterprise Value 4.23b / Total Assets 24.0b)
Interest Expense / Debt = 287.5% (Interest Expense 552.8m / Debt 192.3m)
Taxrate = 19.58% (81.0m / 413.5m)
NOPAT = 346.3m (EBIT 430.7m * (1 - 19.58%))
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 = 0.12 (Net Debt 56.8m / EBITDA 454.2m)
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 = 10.48% (NOPAT 346.3m / Invested Capital 3.30b)
WACC = 8.58% (E(4.18b)/V(4.37b) * Re(8.97%) + (debt cost/tax rate unavailable))
Discount Rate = 8.97% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -94.28 | Cagr: -3.74%
[DCF] Terminal Value 75.52% ; FCFF base≈348.1m ; Y1≈369.2m ; Y5≈436.4m
[DCF] Fair Price = 95.53 (EV 6.46b - Net Debt 56.8m = Equity 6.40b / Shares 67.0m; r=8.58% [WACC]; 5y FCF grow 6.78% → 2.50% )
EPS Correlation: -54.86 | EPS CAGR: -5.29% | SUE: 2.26 | # 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=+0.15% | Revisions=+25% | Analysts=5
EPS next Quarter (2026-09-30): EPS=1.40 | Chg30d=+0.14% | Revisions=+25% | Analysts=5
EPS current Year (2026-12-31): EPS=5.48 | Chg30d=+0.11% | Revisions=+62% | GrowthEPS=+20.7% | GrowthRev=+7.9%
EPS next Year (2027-12-31): EPS=5.90 | Chg30d=+0.14% | Revisions=+50% | GrowthEPS=+7.8% | GrowthRev=+5.2%
[Analyst] Revisions Ratio: +77% (up=10, down=0)