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Cathay General Bancorp (CATY)CATY

Upturn stock ratingUpturn stock rating
Cathay General Bancorp
$52.24
Delayed price
Profit since last BUY41.23%
Consider higher Upturn Star rating
upturn advisory
BUY since 94 days
  • BUY Advisory
  • Profitable SELL
  • Loss-Inducing SELL
  • Profit
  • Loss ​
  • PASS (Skip invest)*​ ​
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
  • WEEK
Time period over

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​ Upturn stock ratingUpturn stock rating
Today’s Advisory: Consider higher Upturn Star rating
Historic Profit: 12.74%
Upturn Advisory Performance Upturn Advisory Performance3
Avg. Invested days: 34
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Stock Returns Performance Upturn 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​ Upturn stock ratingUpturn stock rating
Stock Returns Performance Upturn Returns Performance 2
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 11/12/2024
Upturn Advisory Performance Upturn Advisory Performance3

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

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.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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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