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Upturn AI SWOT - About
CATO 
Cato Corporation (CATO)
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Upturn Advisory Summary
04/01/2025: CATO (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type Stock | Historic Profit -67.81% | Avg. Invested days 20 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 127.11M USD | Price to earnings Ratio - | 1Y Target Price 23 |
Price to earnings Ratio - | 1Y Target Price 23 | ||
Volume (30-day avg) 87843 | Beta 1.11 | 52 Weeks Range 2.64 - 6.70 | Updated Date 04/2/2025 |
52 Weeks Range 2.64 - 6.70 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 11.00% | Basic EPS (TTM) -0.89 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-03-19 | When Before Market | Estimate - | Actual -0.6999 |
Profitability
Profit Margin -2.71% | Operating Margin (TTM) -0.6% |
Management Effectiveness
Return on Assets (TTM) -2.71% | Return on Equity (TTM) -8.76% |
Valuation
Trailing PE - | Forward PE - | Enterprise Value 134736393 | Price to Sales(TTM) 0.1 |
Enterprise Value 134736393 | Price to Sales(TTM) 0.1 | ||
Enterprise Value to Revenue 0.21 | Enterprise Value to EBITDA 22.38 | Shares Outstanding 18804600 | Shares Floating 15514187 |
Shares Outstanding 18804600 | Shares Floating 15514187 | ||
Percent Insiders 9.81 | Percent Institutions 43.13 |
Analyst Ratings
Rating - | Target Price 23 | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Cato Corporation
Company Overview
History and Background
Cato Corporation, founded in 1946 by Wayland Cato, Sr., is a leading specialty retailer of value-priced fashion apparel and accessories. It has grown steadily through organic expansion, primarily targeting small towns and rural communities.
Core Business Areas
- Cato Fashions: Offers fashion apparel and accessories targeted toward value-conscious women.
- Versona: Aimed at a more affluent, sophisticated customer with a broader selection of apparel, jewelry, and accessories.
- It's Fashion: Focuses on trendy and budget-friendly clothing, shoes, and accessories for the whole family.
Leadership and Structure
The leadership team consists of Brian K. Shaw (CEO) and other key executives overseeing various operational and financial aspects. The company operates with a centralized organizational structure, ensuring efficiency and control over its stores.
Top Products and Market Share
Key Offerings
- Women's Apparel: Includes tops, bottoms, dresses, outerwear, and other clothing items. Cato's market share is relatively small and hard to come by publicly. Key competitors include Walmart (WMT), Target (TGT), and other specialty retailers.
- Accessories: Consists of jewelry, handbags, shoes, and other fashion accessories. This segment competes with stores like Claire's, Charming Charlie (privately held), and online retailers.
Market Dynamics
Industry Overview
The retail apparel industry is highly competitive and subject to changing fashion trends and economic conditions. Consumers are increasingly shifting towards online shopping, impacting brick-and-mortar retailers.
Positioning
Cato Corporation positions itself as a value-priced retailer, targeting customers in smaller, underserved markets. Its competitive advantage lies in its niche market focus and established brand presence in these areas.
Total Addressable Market (TAM)
The TAM for apparel retail is vast, estimated at hundreds of billions of dollars annually. Cato is focusing on smaller markets and value-conscious consumers, which is a smaller portion of the overall TAM.
Upturn SWOT Analysis
Strengths
- Strong brand recognition in its target markets
- Established store network in smaller communities
- Value-priced offerings appealing to budget-conscious consumers
- Experienced management team
Weaknesses
- Limited online presence compared to competitors
- Dependence on brick-and-mortar sales
- Susceptibility to economic downturns impacting consumer spending
- Relatively small market capitalization and resources
Opportunities
- Expanding online presence and e-commerce capabilities
- Introducing new product lines and brands to attract a wider customer base
- Leveraging data analytics to improve inventory management and customer targeting
- Opening new stores in underserved markets
Threats
- Increased competition from online retailers and discount stores
- Changing fashion trends and consumer preferences
- Economic recession impacting consumer spending on apparel
- Supply chain disruptions and rising costs
Competitors and Market Share
Key Competitors
- WMT
- TGT
- TJX
Competitive Landscape
Cato competes primarily on price and location in smaller markets. It has a smaller scale and narrower product assortment compared to major competitors.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Cato Corporation's growth has been steady, driven primarily by organic expansion. However, growth has been slow. More current info needs to be checked independently
Future Projections: Future growth projections depend on various factors, including economic conditions and the company's ability to adapt to changing consumer preferences. Analyst estimations need to be independently researched.
Recent Initiatives: Recent initiatives typically include store openings, marketing campaigns, and efforts to enhance the online shopping experience. Current Cato earning reports need to be consulted.
Summary
Cato Corporation is a niche retailer with a focus on value-priced fashion in smaller markets. Its strengths lie in its established brand and store network, but it faces challenges from online competition and changing consumer preferences. While the company has steady and consistent revenues, they will need to adapt to the increasing trends of online shopping. Cato has a long way to go before being able to compete with bigger market players like Walmart and Target.
Similar Companies
KSS
Kohls Corp
KSS
Kohls Corp
ROST
Ross Stores Inc
ROST
Ross Stores Inc
TGT
Target Corporation
TGT
Target Corporation
WMT
Walmart Inc
WMT
Walmart Inc
Sources and Disclaimers
Data Sources:
- Company website, SEC filings, Market research reports, Analyst reports
Disclaimers:
This analysis is based on available information and estimates, and it is not financial advice. Actual results may vary.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Cato Corporation
Exchange NYSE | Headquaters Charlotte, NC, United States | ||
IPO Launch date 1987-04-23 | Chairman, President & CEO Mr. John P. Derham Cato | ||
Sector Consumer Cyclical | Industry Apparel Retail | Full time employees - | Website https://www.catofashions.com |
Full time employees - | Website https://www.catofashions.com | ||
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. It also provides credit card services to its customers, as well as layaway plans for customers. The Cato Corporation was incorporated in 1946 and is headquartered in Charlotte, North Carolina.
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