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Upturn AI SWOT - About
CATO 
Cato Corporation (CATO)
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Upturn Advisory Summary
10/14/2025: 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.
Analysis of Past Performance
Type Stock | Historic Profit -64.72% | Avg. Invested days 26 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/14/2025 |
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 and has grown to a multi-store retailer of fashion and value-priced apparel and accessories. The company primarily operates in the southeastern United States.
Core Business Areas
- Cato Fashions: This segment offers fashion apparel and accessories for women. It focuses on providing current trends at affordable prices.
- Vittorio Starda: This segment offers apparel for the more sophisticated customer. They offer fashion for an older demographic.
- It's Fashion Metro: This segment offers fashion apparel and accessories for women and children. It focuses on providing even lower prices for the cost conscious consumer.
Leadership and Structure
The leadership team consists of the CEO, CFO, and other executive officers. The organizational structure includes departments for merchandising, operations, marketing, and finance.
Top Products and Market Share
Key Offerings
- Women's Apparel: This includes a variety of clothing items like dresses, tops, bottoms, and outerwear. Cato's market share in women's apparel is difficult to pinpoint precisely, but they compete with many larger retailers and direct-to-consumer brands. Competitors include TJ Maxx (TJX), Ross Stores (ROST), and Walmart (WMT).
- Accessories: This includes jewelry, handbags, shoes, and other fashion accessories. Market share data is not readily available, but the accessories segment is highly competitive. Competitors include H&M (STO: HM B), Forever 21, and Amazon (AMZN).
Market Dynamics
Industry Overview
The retail apparel industry is highly competitive and subject to changing consumer preferences, economic conditions, and seasonal trends. The industry is also experiencing a shift towards online shopping and direct-to-consumer brands.
Positioning
Cato Corporation positions itself as a value-priced retailer targeting budget-conscious shoppers in smaller markets. Its competitive advantage lies in its store network in underserved areas and its focus on affordability.
Total Addressable Market (TAM)
The total addressable market for apparel and accessories in the U.S. is estimated to be hundreds of billions of dollars annually. Cato Corporation captures a small percentage of this TAM due to its specific target market and store locations.
Upturn SWOT Analysis
Strengths
- Strong brand recognition in its target markets
- Extensive store network in underserved areas
- Focus on value-priced apparel
- Experienced management team
Weaknesses
- Limited online presence
- Dependence on brick-and-mortar stores
- Vulnerable to economic downturns
- Smaller marketing budget compared to larger competitors
Opportunities
- Expanding online sales channels
- Introducing new product categories
- Increasing brand awareness through social media marketing
- Entering new geographic markets
Threats
- Increased competition from online retailers
- Changing consumer preferences
- Economic recession
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- TJX
- ROST
- GPS
- WMT
Competitive Landscape
Cato Corporation faces intense competition from larger retailers with greater resources. Its competitive advantage lies in its focus on value pricing and its store network in underserved areas. It needs to strengthen its online presence to compete effectively.
Growth Trajectory and Initiatives
Historical Growth: Cato Corporation's growth has been steady but not spectacular, reflecting the mature nature of the retail apparel industry and its focus on value pricing.
Future Projections: Future growth projections depend on the company's ability to adapt to changing consumer preferences, expand its online presence, and manage its expenses effectively. Analyst estimates vary.
Recent Initiatives: Recent initiatives may include store renovations, expansion of online offerings, and marketing campaigns aimed at attracting new customers.
Summary
Cato Corporation is a value-priced apparel retailer with a strong presence in smaller markets. Its strengths include brand recognition and an established store network. It faces challenges from online competition and changing consumer preferences, and needs to expand it's digital presence. The company could benefit from exploring new product categories.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Industry reports
- Market research data
Disclaimers:
The data provided is for informational purposes only and should not be considered investment advice. Market share data are estimates and may vary depending on the source.
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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