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Upturn AI SWOT - About
CATO 
Cato Corporation (CATO)
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Upturn Advisory Summary
08/08/2025: CATO (1-star) is a SELL. SELL since 2 days. Profits (-14.33%). Updated daily EoD!
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
Very few follow this stock; limited insights, higher-risk early investing.
Analysis of Past Performance
Type Stock | Historic Profit -68.78% | Avg. Invested days 24 | Today’s Advisory SELL |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/08/2025 |
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 |
Upturn AI SWOT
Cato Corporation
Company Overview
History and Background
The Cato Corporation was founded in 1946 by Wayland Cato Sr. It started as a single store in Charlotte, North Carolina, and has grown to operate multiple retail chains across the Southeastern United States and beyond. It is publicly traded on the NYSE under the ticker symbol CATO.
Core Business Areas
- Cato Fashions: This is the primary segment, offering fashionable apparel and accessories at value prices to women. It targets fashion-conscious customers in small towns and rural areas.
- Versona: A boutique concept offering apparel, jewelry, and accessories for women with a more sophisticated style. Versona focuses on larger metropolitan markets.
- It's Fashion Metro: A value-oriented chain selling apparel, shoes, and accessories for the entire family in urban markets.
Leadership and Structure
The leadership team typically consists of a CEO, CFO, and other executives responsible for merchandising, operations, and finance. The organizational structure is hierarchical, with regional and district managers overseeing store operations.
Top Products and Market Share
Key Offerings
- Women's Apparel: Cato Fashions' primary offering is affordable women's clothing, including dresses, tops, pants, and outerwear. Market share data is difficult to pinpoint precisely, but they compete in the value-priced segment. Competitors include Walmart, Target, Ross Stores, and TJ Maxx.
- Accessories: Accessories such as jewelry, handbags, and scarves complement the apparel offerings. Specific market share data unavailable. Competitors include Amazon, Walmart, Target, and Claire's.
- Shoes: Shoes, including sandals, sneakers, and boots, are sold to match fashion needs. Specific market share data unavailable. Competitors include DSW, Famous Footwear, and Zappos.
Market Dynamics
Industry Overview
The apparel retail industry is highly competitive and susceptible to fashion trends, economic conditions, and changing consumer preferences. The industry continues to shift with online retail taking market share from physical retailers.
Positioning
Cato Corporation positions itself as a value-priced retailer focusing on smaller markets and a specific demographic. Its competitive advantages lie in its targeted merchandising, convenient locations, and strong brand recognition within its niche.
Total Addressable Market (TAM)
The US apparel market is estimated at several hundred billion dollars annually. Cato Corporation targets a specific segment within this TAM, focusing on value-conscious consumers in smaller towns. Their position is a niche player.
Upturn SWOT Analysis
Strengths
- Strong brand recognition in target markets
- Loyal customer base
- Value-priced offerings
- Extensive store network in strategic locations
Weaknesses
- Dependence on brick-and-mortar stores
- Limited online presence
- Vulnerability to fashion trends
- Susceptibility to economic downturns
Opportunities
- Expansion of online sales channels
- Development of new product lines
- Targeted marketing initiatives
- Leveraging data analytics to improve merchandising
Threats
- Increased competition from online retailers
- Changing consumer preferences
- Economic downturns
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- Walmart (WMT)
- Target (TGT)
- Ross Stores (ROST)
- TJX Companies (TJX)
Competitive Landscape
Cato faces intense competition from large national retailers, discount chains, and online retailers. Its advantages lie in its niche focus, store locations, and brand recognition within its target market. Disadvantages include lack of large scale and significant online presence.
Growth Trajectory and Initiatives
Historical Growth: Cato's historical growth has been moderate, focusing on same-store sales growth and targeted expansion into new markets.
Future Projections: Analyst projections depend on the retailer's ability to adapt to changing consumer preferences and the economic outlook. Online expansion and effective merchandising are essential for future growth.
Recent Initiatives: Recent initiatives may include improvements to the online shopping experience, targeted marketing campaigns, and adjustments to store formats.
Summary
Cato Corporation is a value-priced retailer that has performed inconsistently in the recent years and will need to grow with digital transformations. While there is a loyal customer base, its dependency on brick-and-mortar stores and vulnerable susceptibility to economic downturns creates weaknesses. The future growth will depend on the retailer's ability to adapt to changing consumer preferences and leverage online expansion and effective merchandising.
Peer Comparison
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Website
- Market Research Reports
- Analyst Estimates
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered financial advice. Market conditions and company performance 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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