The Cato Corporation

The Cato Corporation

CATOยทNYSE

$3.28

+3.8%
Consumer CyclicalApparel - Retail

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.

At a Glance

Live Snapshot
Market Cap$59.68M
EPS-0.3100
P/E Ratio-10.58
Earnings Date08/20/2026
The Cato Corporation

The Cato Corporation Fair Value Envelope

CATO ยท NYSE

Our analysis suggests that CATO has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $3.28, this represents a potential HIDDEN relative to our calculated worth for The Cato Corporation.

Intrinsic Value
Current Price: $3.28

Owner Earnings Valuation Tool

Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation

Historical Financial Data

Base year metrics used for projections

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Projection Settings

Forecast period and terminal assumptions

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DCF Valuation Summary

Calculation flow from present value to intrinsic value per share

Present Value-$957.7M
+ Cash & Equivalents$19.5M
Firm Value-$938.3M
- Debt$150.4M
Equity Value-$1.1B
/ Shares Outstanding18,959,159B
DCF Value-$57
OVERVALUED BY 1851%

Owner Earnings Projections

Operating Cash Flow - Maintenance CapEx = Owner Earnings

Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Operating Cash Flow
-$2.6M
-$4.8M
-$8.7M
-$15.7M
-$28.4M
-$51.5M
-$93.3M
-$168.9M
-$305.9M
-$553.9M
Maintenance CapEx
-$1.4M
-$2.5M
-$4.5M
-$8.1M
-$14.7M
-$26.5M
-$48.1M
-$87.0M
-$157.6M
-$285.3M
Owner Earnings
-$4.0M
-$7.3M
-$13.1M
-$23.8M
-$43.1M
-$78.1M
-$141.3M
-$255.9M
-$463.5M
-$839.3M
Discount Factor
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
Present Value
-$3.7M
-$6.2M
-$10.4M
-$17.5M
-$29.3M
-$49.2M
-$82.5M
-$138.3M
-$231.9M
-$388.7M
Terminal Value represents 0.0% of Enterprise Value
Negative Owner Earnings
This company generates negative free cash flow. Consider adjusting maintenance CapEx percentage or check the financial data.