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Upturn AI Summary - About
Cato Corporation(CATO)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for CATO
10/06/2026: CATO (1-star) is currently NOT-A-BUY. Pass it for now.
Cato Corporation is a specialty retailer primarily focused on women's value-priced apparel in small-town and suburban markets. The company benefits from an established niche and a conservative balance sheet that supports its dividend policy. Its primary opportunity lies in optimizing its omnichannel capabilities and inventory management to remain relevant against larger, more dominant off-price retailers. However, the business faces risks from intense competition, economic sensitivity, and a high reliance on a brick-and-mortar footprint. The stock may best suit income-oriented investors, though key developments to monitor include store productivity metrics and the efficacy of its ongoing digital retail initiatives.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Weak fit | The company shows limited top-line growth potential in the current retail environment. |
| Momentum investor | Weak fit | The stock lacks strong, consistent price momentum required for this style. |
| Value investor | Mixed fit | Valuation may appear attractive, but low business growth limits the value thesis. |
| Dividend investor | Strong fit while signal remains positive | The company has a history of prioritizing shareholder dividends. |
| Low-risk investor | Mixed fit | Retail sector volatility poses risks that may be unsuitable for very conservative investors. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | Retail stocks often experience significant price swings based on seasonal earnings reports. |
| Valuation risk | Medium | The stock valuation is tied to the sustainability of cash flows in a tightening retail market. |
| Competition risk (off-price retail) | High | Large competitors like TJX have significant pricing power that pressures smaller players. |
| Business quality | Medium | The business operates in a mature industry with high sensitivity to consumer spending. |
| Dividend income | Medium | Dividend sustainability depends on consistent free cash flow generation. |
| Execution risk | Medium / high | Successfully managing store inventory and foot traffic is critical for profitability. |
Price Behavior
Downtrend
The stock has experienced a sustained decline in price over recent periods.
Choppy
The stock has experienced frequent reversals and pronounced short-term price swings.
Analysis of Past Performance
Type Stock | Historic Profit -67.79% | Avg. Invested days 29 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/06/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 47.59M USD | Price to earnings Ratio - | 1Y Target Price 23 |
Price to earnings Ratio - | 1Y Target Price 23 | ||
Volume (30-day avg) 99.2K shares | Beta 0.56 | 52 Weeks Range 2.30 - 4.59 | Updated Date 10/05/2026 |
52 Weeks Range 2.30 - 4.59 | Updated Date 10/05/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.31 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Apparel Retail | Sales of women's clothing, shoes, and accessories through physical stores and e-commerce. | The company's primary revenue comes from selling fashion items to women at value price points. |
| Credit Services | Interest and fees from the Cato store credit card program. | Provides a secondary income stream and encourages customer retention. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Valuation
Trailing PE - | Forward PE 17.15 | Enterprise Value 93.85M | Price to Sales(TTM) 0.07 |
Enterprise Value 93.85M | Price to Sales(TTM) 0.07 | ||
Enterprise Value to Revenue 0.15 | Enterprise Value to EBITDA 65.26 | Shares Outstanding 18.15M | Shares Floating 14.70M |
Shares Outstanding 18.15M | Shares Floating 14.70M | ||
Percent Insiders 13.9 | Percent Institutions 32.4 |
Upturn AI Summary
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.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About Cato Corporation
Exchange NYSE | Headquarters 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 6700 | Website https://www.catofashions.com |
Full time employees 6700 | 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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