The Cato Corporation (CATO) Stock

The Cato Corporation (CATO) is a Consumer Discretionary stock trading at $3.04 (as of 2026-08-20), with a market capitalization of $57.21M and a trailing P/E of 4.0. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

The Cato Corporation is a specialty retailer of fashion apparel and accessories, operating stores and e-commerce websites under multiple brand names, and selling women’s and men’s merchandise as well as lines for kids and infants. It operates through Retail and Credit segments, providing retail services alongside credit card and layaway payment plans to customers primarily in the southeastern United States.

Understand The Cato Corporation: how it makes money

Cato is a specialty retailer of fashion apparel and accessories, selling through its stores and e-commerce sites, and it also operates a Credit segment.

Cato makes its money by selling fashion apparel and accessories through a store and e-commerce footprint (Retail), with an additional profit stream from its separate Credit segment.

Business quality (Mixed): A simple two-part operating model (Retail and Credit) and a measurable store footprint, but the business also faces risks tied to fashion demand and credit performance.

Bull case

  • Store footprint and expansion signals: Cato tracks its store base, and in the latest period it had 1,065 stores operating, with 4 new stores opened.
  • Multi-channel product selling: It sells apparel and accessories through both stores and e-commerce websites, which can help support demand across channels.
  • Two segment business model: Cato operates through two segments, Retail and Credit, which can diversify where revenue comes from within the company.

Bear case

  • Ongoing store closures: In the latest period it reported 19 stores closed and 20 permanently closed stores, which can reduce the sales base if it does not translate into improved productivity.
  • Fashion and retail demand sensitivity: Because it sells discretionary apparel and accessories, customer demand can be affected by changes in fashion preferences and consumer spending.
  • Credit segment adds risk: The presence of a Credit segment means results can be influenced by how customers repay their credit obligations, which can add uncertainty versus pure retail selling.
Valuation — source: SEC EDGAR (first-party)
Price$3.04
Market Cap$57.21M
P/E Ratio4.0
EV / EBITDA1.5
Price / Book0.34
Price / Sales0.08
FCF Yield41.0%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$653.81M
Net Margin-0.9%
Revenue Growth (YoY)0.6%
EPS Growth (YoY)-68.0%
FCF Growth (YoY)-81.1%
Financial Health — source: SEC EDGAR
Altman Z-Score1.77 (distress)
Valuation vs Sector & Industry
Stock P/E4.0
Sector P/E (Consumer Discretionary)20.5
Industry P/E (Retail)19.5
vs Sector-80.4%
vs Industry-79.5%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock Fund Advisors ($61.24M)
Institutional Holders Tracked10
Company
SectorConsumer Discretionary
IndustryRetail
CEOJohn Derham Cato
Employees7,000
CountryUS
IPO Date1987-04-22

Related Companies (Business model: Brick-and-Mortar Retail (incl. Omnichannel); 8 closest by market cap; US-domiciled)

  • Designer Brands Inc. (DBI)
  • Zumiez Inc. (ZUMZ)
  • Torrid Holdings Inc. (CURV)
  • Duluth Holdings Inc. (DLTH)
  • Tilly's, Inc. (TLYS)
  • Vince Holding Corp. (VNCE)
  • The Children's Place, Inc. (PLCE)
  • Destination XL Group, Inc. (DXLG)
CATO earnings history · CATO institutional & insider holders · CATO KPIs & operating metrics · CATO financials · CATO investor presentations & press releases · CATO SEC filings · CATO peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.