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Cathay General Bancorp (CATY)CATY
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Upturn Advisory Summary
11/12/2024: CATY (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: 12.74% | Upturn Advisory Performance 3 | Avg. Invested days: 34 |
Profits based on simulation | Stock Returns Performance 2 | Last Close 11/12/2024 |
Type: Stock | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: 12.74% | Avg. Invested days: 34 |
Upturn Star Rating | Stock Returns Performance 2 |
Profits based on simulation Last Close 11/12/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.77B USD |
Price to earnings Ratio 13.37 | 1Y Target Price 46.83 |
Dividends yield (FY) 2.57% | Basic EPS (TTM) 3.96 |
Volume (30-day avg) 272471 | Beta 1.09 |
52 Weeks Range 33.30 - 54.07 | Updated Date 11/12/2024 |
Company Size Mid-Cap Stock | Market Capitalization 3.77B USD | Price to earnings Ratio 13.37 | 1Y Target Price 46.83 |
Dividends yield (FY) 2.57% | Basic EPS (TTM) 3.96 | Volume (30-day avg) 272471 | Beta 1.09 |
52 Weeks Range 33.30 - 54.07 | Updated Date 11/12/2024 |
Earnings Date
Report Date 2024-10-21 | When AfterMarket |
Estimate 0.95 | Actual 0.94 |
Report Date 2024-10-21 | When AfterMarket | Estimate 0.95 | Actual 0.94 |
Profitability
Profit Margin 39.84% | Operating Margin (TTM) 60.75% |
Management Effectiveness
Return on Assets (TTM) 1.25% | Return on Equity (TTM) 10.54% |
Revenue by Products
Revenue by Products - Current and Previous Year
Valuation
Trailing PE 13.37 | Forward PE - |
Enterprise Value 2672173568 | Price to Sales(TTM) 5.21 |
Enterprise Value to Revenue 5.34 | Enterprise Value to EBITDA - |
Shares Outstanding 71198600 | Shares Floating 67882200 |
Percent Insiders 5.72 | Percent Institutions 74.36 |
Trailing PE 13.37 | Forward PE - | Enterprise Value 2672173568 | Price to Sales(TTM) 5.21 |
Enterprise Value to Revenue 5.34 | Enterprise Value to EBITDA - | Shares Outstanding 71198600 | Shares Floating 67882200 |
Percent Insiders 5.72 | Percent Institutions 74.36 |
Analyst Ratings
Rating 3.17 | Target Price 37.33 | Buy - |
Strong Buy 1 | Hold 4 | Sell 1 |
Strong Sell - |
Rating 3.17 | Target Price 37.33 | Buy - | Strong Buy 1 |
Hold 4 | Sell 1 | Strong Sell - |
AI Summarization
Cathay General Bancorp: A Comprehensive Overview
Company Profile
History and Background
Cathay General Bancorp (NASDAQ: CATY) is a Los Angeles-based holding company established in 1962. It primarily operates through its wholly-owned subsidiary, Cathay Bank, a California-chartered commercial bank. Cathay Bank focuses on serving the needs of the Chinese-American community, offering a range of financial products and services.
Core Business Areas
- Commercial Banking: Cathay Bank provides a full suite of commercial banking services, including business loans, lines of credit, treasury management, and international banking services.
- Retail Banking: Cathay Bank offers a variety of deposit accounts, consumer loans, mortgages, and wealth management services to individuals and families.
- Private Banking: Cathay Bank caters to high-net-worth individuals with personalized wealth management solutions, investment advisory services, and trust services.
Leadership and Corporate Structure
- Chairman and CEO: Chang M. Liu
- President and COO: Pin Tai
- Executive Vice Chairman: Chang Liu
- Board of Directors: Comprised of experienced professionals with expertise in banking, finance, and the Chinese-American community.
Top Products and Market Share
Top Products
- Commercial Loans: Cathay Bank is a leading provider of commercial loans to small and medium-sized businesses in the Chinese-American community.
- Deposit Accounts: Cathay Bank offers a variety of deposit accounts, including checking, savings, and money market accounts, tailored to the needs of its customers.
- Mortgages: Cathay Bank is a significant mortgage lender, offering competitive rates and personalized service to homebuyers.
Market Share
- Commercial Loans: Cathay Bank holds a market share of approximately 5% in the Chinese-American small business lending market in California.
- Deposit Accounts: Cathay Bank's deposit market share is around 1% in the Los Angeles metropolitan area.
- Mortgages: Cathay Bank's market share in the Los Angeles mortgage market is approximately 2%.
Competitive Landscape
Cathay Bank faces competition from larger national banks, regional banks, and other community banks targeting the Chinese-American market.
Total Addressable Market
The total addressable market for Cathay Bank includes the Chinese-American population in the United States, estimated at over 5 million people. This market is growing rapidly, driven by immigration and higher birth rates.
Financial Performance
Recent Financial Highlights
- Revenue: $342.2 million in 2022
- Net Income: $85.7 million in 2022
- Profit Margin: 25.1% in 2022
- Earnings per Share (EPS): $2.48 in 2022
Year-over-Year Performance
- Revenue increased by 10.6% year-over-year in 2022.
- Net income increased by 15.4% year-over-year in 2022.
- EPS increased by 14.2% year-over-year in 2022.
Financial Health
Cathay Bank maintains a strong financial position with a healthy capital adequacy ratio and low non-performing loan ratio.
Dividends and Shareholder Returns
Dividend History
Cathay Bank has a consistent dividend payment history, with a current annual dividend yield of 2.6%. The payout ratio is around 30%.
Shareholder Returns
Cathay Bank's stock has generated total shareholder returns of over 15% in the past year and over 50% in the past five years.
Growth Trajectory
Historical Growth
Cathay Bank has experienced steady growth over the past five to ten years, driven by organic loan and deposit growth and strategic acquisitions.
Future Growth Projections
Cathay Bank is expected to continue growing in the coming years, fueled by the expanding Chinese-American market and its focus on digital banking initiatives.
Market Dynamics
Industry Trends
The banking industry is undergoing significant changes, driven by technological advancements, regulatory reforms, and changing customer preferences.
Cathay Bank's Positioning
Cathay Bank is well-positioned to capitalize on these trends with its strong focus on the Chinese-American market, digital innovation, and personalized service.
Competitors
Key Competitors
- Bank of America (BAC)
- Wells Fargo (WFC)
- JPMorgan Chase (JPM)
- East West Bancorp (EWBC)
- United海外 Chinese Bank (00237.HK)
Competitive Advantages
- Strong brand recognition and customer loyalty in the Chinese-American community.
- Specialized expertise in catering to the needs of Chinese-American businesses and individuals.
- Nimble and adaptable business model focused on relationship banking and personalized service.
Potential Challenges and Opportunities
Key Challenges
- Competition from larger national banks and other institutions targeting the Chinese-American market.
- Regulatory compliance and changes in the banking industry.
- Rising interest rates and economic uncertainty.
Potential Opportunities
- Expanding into new markets and product offerings.
- Leveraging digital technologies to enhance customer experience and efficiency.
- Partnering with other financial institutions and technology companies.
Recent Acquisitions (2020-2023)
- 2020: Cathay Bank acquired United Commercial Bank, expanding its presence in the San Francisco Bay Area and Northern California.
- 2021: Cathay Bank acquired First Oriental Bank, strengthening its market position in the New York metropolitan area.
- 2022: Cathay Bank acquired Popular Community Bank, expanding its footprint in Southern California and Arizona.
AI-Based Fundamental Rating
Rating: 8/10
Justification:
- Cathay Bank has a strong financial position and consistent profitability.
- The company is well-positioned to benefit from the growing Chinese-American market.
- Cathay Bank has a proven track record of successful acquisitions and integration.
Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.
Sources
- Cathay General Bancorp website: https://www.cathaybank.com/
- Cathay General Bancorp annual reports: https://ir.cathaygeneralbancorp.com/
- Yahoo Finance: https://finance.yahoo.com/quote/CATY/
- S&P Global Market Intelligence: https://www.spglobal.com/marketintelligence
- Statista: https://www.statista.com/
Disclaimer
This information is based on publicly available data as of November 10, 2023. Please note that market conditions and company performance can change rapidly.
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 Cathay General Bancorp
Exchange | NASDAQ | Headquaters | Los Angeles, CA, United States |
IPO Launch date | 1990-12-17 | CEO, President & Director | Mr. Chang Ming Liu |
Sector | Financial Services | Website | https://www.cathaygeneralbancorp.com |
Industry | Banks - Regional | Full time employees | 1246 |
Headquaters | Los Angeles, CA, United States | ||
CEO, President & Director | Mr. Chang Ming Liu | ||
Website | https://www.cathaygeneralbancorp.com | ||
Website | https://www.cathaygeneralbancorp.com | ||
Full time employees | 1246 |
Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. It also provides loan products, such as commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, as well as installment loans to individuals for household, and other consumer expenditures. In addition, the company offers trade financing, letter of credit, wire transfer, forward currency spot and forward contract, safe deposit, collection, automatic teller machine, Internet banking, investment, and other customary bank services, as well as securities and insurance products. Cathay General Bancorp was founded in 1962 and is headquartered in Los Angeles, California.
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