Cato Corp. (CATO) intrinsic value & 10-year financials

Cato Corp. (CATO) has a Graham intrinsic value of $0.28 per share. At $2.35 on Oct 17, 2026, the stock trades 739% above that value. Over the last 10 fiscal years revenue shrank 4.2% a year to $646.8M, with an average return on invested capital of 1.4%.

Graham intrinsic value
$0.28
Share price (Oct 17, 2026)
$2.35
Price vs Graham value
739% above
Market cap
$44.1M
Revenue (FY2026)
$646.8M
Revenue growth (10-yr CAGR)
-4.2%
ROIC (10-yr avg)
1.4%
Free cash flow (FY2026)
-$5.2M

CATO 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2026 $646.8M -$5.9M -$0.31 -$5.2M -2.0% -4.3%
FY2025 $642.1M -$18.1M -$0.97 -$27.6M -4.1% -10.7%
FY2024 $700.3M -$23.9M -$1.17 -$12.1M -2.0% -4.8%
FY2023 $752.4M $29.0K $0.00 -$6.1M 0.2% 0.3%
FY2022 $761.4M $36.8M $1.65 $55.7M 5.1% 10.2%
FY2021 $567.5M -$47.5M -$2.01 -$44.7M -12.8% -11.5%
FY2020 $816.2M $35.9M $1.46 $45.1M 5.3% 9.6%
FY2019 $821.1M $30.5M $1.23 $55.9M 4.0% 10.4%
FY2018 $842.0M $8.5M $0.34 $24.9M 1.9% 2.4%
FY2017 $947.4M $47.2M $1.72 $44.8M — 12.3%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

CATO CORP is facing top-line stagnation, with revenue contracting over the decade.

CATO CORP has historically struggled to out-earn its cost of capital, averaging just 1.4% ROIC.

Over the decade, CATO CORP shows that management has aggressively returned capital to shareholders by retiring 30.0% of outstanding shares.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, CATO CORP is modeled at -4.2% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $0.28 per share.

CATO stock: frequently asked questions

What is the intrinsic value of Cato Corp. (CATO) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a -4.2% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, CATO's intrinsic value is about $0.28 per share.

Is CATO stock undervalued?

At $2.35 (close on Oct 17, 2026), CATO trades 739% above its Graham value of $0.28. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has Cato Corp. grown?

Revenue went from $947.4M in fiscal 2017 to $646.8M in fiscal 2026, a compound annual growth rate of -4.2%. Net income was -$5.9M in fiscal 2026.

Does Cato Corp. generate free cash flow?

Cato Corp. generated -$5.2M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2026. Free cash flow was positive in 5 of the last 10 reported years.

What is CATO's return on invested capital?

Average ROIC over the last 10 fiscal years was 1.4%, and average return on equity was 0.8%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this CATO data come from?

From Cato Corp.'s annual 10-K filings on SEC EDGAR, most recently filed May 28, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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