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Upturn AI SWOT - About
CATO 
Cato Corporation (CATO)
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Upturn Advisory Summary
06/27/2025: 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.
Number of Analysts
0 Analysts rated it
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Year Target Price $23
Year Target Price $23
| 0 | Strong Buy |
| 0 | Buy |
| 0 | Hold |
| 0 | Under performing |
| 0 | Sell |
Analysis of Past Performance
Type Stock | Historic Profit -69.97% | 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 06/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 54.47M USD | Price to earnings Ratio - | 1Y Target Price 23 |
Price to earnings Ratio - | 1Y Target Price 23 | ||
Volume (30-day avg) - | Beta 0.79 | 52 Weeks Range 2.19 - 6.70 | Updated Date 06/29/2025 |
52 Weeks Range 2.19 - 6.70 | Updated Date 06/29/2025 | ||
Dividends yield (FY) 18.09% | Basic EPS (TTM) -1.34 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -4% | Operating Margin (TTM) 1.78% |
Management Effectiveness
Return on Assets (TTM) -4.17% | Return on Equity (TTM) -14.22% |
Valuation
Trailing PE - | Forward PE - | Enterprise Value 107115138 | Price to Sales(TTM) 0.08 |
Enterprise Value 107115138 | Price to Sales(TTM) 0.08 | ||
Enterprise Value to Revenue 0.17 | Enterprise Value to EBITDA 22.38 | Shares Outstanding 17973400 | Shares Floating 13553370 |
Shares Outstanding 17973400 | Shares Floating 13553370 | ||
Percent Insiders 18.19 | Percent Institutions 36.99 |
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
The Cato Corporation was founded in 1946 by Wayland Henry Cato, Sr. It started as a single store in Charlotte, North Carolina, and has grown into a national retailer. The company targets value-conscious customers, primarily in small towns and rural areas.
Core Business Areas
- Cato Fashions: Specialty retailer of fashion apparel and accessories for women with stores in 32 states.
- Versona: Retailer of apparel, jewelry, and accessories for women, with a focus on a more contemporary and sophisticated style.
- It's Fashion: Retailer offering fashion apparel and accessories for the entire family, at lower price points.
Leadership and Structure
The Cato Corporation is led by a board of directors and a senior management team. The CEO is currently Eric R. Hunter. The organizational structure is typical of a retail company, with departments for merchandising, marketing, operations, finance, and human resources.
Top Products and Market Share
Key Offerings
- Women's Apparel: Cato primarily sells women's clothing, including dresses, tops, pants, skirts, and outerwear. Market share data is difficult to pinpoint precisely due to the fragmented nature of the women's apparel market. Competitors include Walmart, Target, Ross Stores, and TJ Maxx.
- Accessories: Accessories such as jewelry, handbags, and shoes are also significant offerings. No specific market share data is available. Competitors include Walmart, Target, Ross Stores, and TJ Maxx.
Market Dynamics
Industry Overview
The apparel retail industry is highly competitive and subject to changing fashion trends, economic conditions, and consumer preferences. Online retail is also a significant factor.
Positioning
Cato Corporation positions itself as a value retailer, targeting customers who seek affordable fashion apparel in smaller markets. Its competitive advantage lies in its store network in underserved communities and its focus on value pricing.
Total Addressable Market (TAM)
The women's apparel market is estimated to be hundreds of billions of dollars globally. Cato Corporation, with its niche focus, captures a small percentage of this TAM. The exact TAM is difficult to assess, but Cato is positioned to serve budget-conscious consumers, which form a substantial part of the market.
Upturn SWOT Analysis
Strengths
- Strong brand recognition in its target market
- Extensive store network in small towns and rural areas
- Focus on value pricing
- Experienced management team
Weaknesses
- Limited online presence compared to competitors
- Dependence on brick-and-mortar stores
- Susceptibility to changing fashion trends
- Limited marketing budget
Opportunities
- Expanding online presence and e-commerce capabilities
- Introducing new product categories
- Enhancing customer loyalty programs
- Increasing brand awareness through targeted marketing
Threats
- Increased competition from online retailers
- Economic downturn impacting consumer spending
- Changing fashion trends and consumer preferences
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- WMT
- TGT
- ROST
- TJX
Competitive Landscape
Cato Corporation faces intense competition from larger retailers with greater resources and broader product offerings. Cato's advantage lies in its niche market focus and store presence in underserved communities. However, its limited online presence and marketing budget pose challenges.
Growth Trajectory and Initiatives
Historical Growth: Will provide format only, data unavailable
Future Projections: Will provide format only, data unavailable
Recent Initiatives: Will provide format only, data unavailable
Summary
Cato Corporation is a value-focused retailer with a strong presence in smaller markets. Its brick-and-mortar strategy is being challenged by online competition. The company's financial performance is impacted by changing consumer preferences and economic conditions. Expansion of online presence is crucial for future growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Market Research Reports
- Industry Analysis
Disclaimers:
This analysis is based on publicly available information and is not financial advice. Market conditions are subject to change.
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 7000 | Website https://www.catofashions.com |
Full time employees 7000 | 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 and layaway plans for customers. The Cato Corporation was incorporated in 1946 and is headquartered in Charlotte, North Carolina.
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