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CATO CORP CATO
CATO CORP (CATO) earns a Piotroski F-score of 5/9 (mixed financial health), with an Altman Z″ in the grey zone. It pays a dividend yielding 15.77% (safety: no dividend). FY2026 revenue was $653.8M at a -0.9% net margin.
Quality score trend · recomputed for each fiscal year
Each year's score is computed from that year's filing — a rising Piotroski F or Altman Z″ means improving financial health, a fall is worth a look.
Beneish M-score: -2.48 — low (below −2.22 — no manipulation red flag) . A statistical screen for earnings manipulation, not proof — and it doesn't apply to most banks/insurers.
How it ranks in Retail Trade · percentile among 238 companies
Percentile vs other Retail Trade companies we cover — e.g. “stronger than 90%” means only 10% score higher on that measure.
Piotroski F breakdown · 5/9 tests passed
- Positive return on assets
- Positive operating cash flow
- Rising ROA
- Cash flow exceeds net income
- Lower long-term debt
- Rising current ratio
- No share dilution
- Rising gross margin
- Rising asset turnover
Altman Z″ components · grey zone
| Component | Value |
|---|---|
| Working capital / assets | 0.089 |
| Retained earnings / assets | 0.059 |
| EBIT / assets | -0.03 |
| Equity / liabilities | 0.596 |
Sector peers · similar-size Retail Trade companies compare side by side →
| Ticker | Company | Piotroski F | Altman Z″ | P / E | Revenue growth |
|---|---|---|---|---|---|
| CATO | CATO CORP | 5/9 | 1.2 | — | +0.6% |
| VSXY | Victoria's Secret & Co. | 5/9 | 1.42 | 38.9 | +5.2% |
| WMT | Walmart Inc. | 6/9 | 2.01 | 44 | +4.7% |
| CVS | CVS HEALTH Corp | 5/9 | 0.99 | 75.3 | +7.8% |
| COST | COSTCO WHOLESALE CORP /NEW | 5/9 | 2.61 | 52.2 | +8.2% |
| JD | JD.com, Inc. | 3/9 | 1.84 | — | +17.9% |
| HD | HOME DEPOT, INC. | 4/9 | 4.54 | 24.6 | +3.2% |
About CATO CORP
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.
FAQ
Is CATO financially healthy?
CATO CORP's Piotroski F-score is 5/9 (8–9 is excellent, 0–3 weak), and its Altman Z″ distress score is in the grey zone.
Does CATO pay a dividend, and is it safe?
Yes. CATO CORP pays a dividend yielding about 15.77% with a None payout ratio, rated “no dividend” for safety.
How profitable is CATO?
In FY2026, CATO CORP had a net margin of -0.9% and a return on equity of -3.8%.
Is CATO overvalued or undervalued?
CATO CORP trades at about 2.0× trailing earnings — below its 10-year norm (10-year range 10.7×–33.4×, median 14.5×). Stocktoria reports the data, not buy/sell advice.
Is CATO a good stock to buy?
Stocktoria doesn't give buy or sell advice, but here is the data on CATO CORP: a Piotroski F-score of 5/9, an Altman Z″ in the grey zone, a dividend yield of 15.77%. Weigh these quality and valuation signals against your own goals.
Computed from company filings · US · as of 2026-01-31. Facts plus Stocktoria's own computed scores — not investment advice.