Cathay General Bancorp [NASDAQ:CATY]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to Cathay General Bancorp [CATY], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in December. On average, stock market experts give CATY an Outperform rating. Its stock price has been found in the range of 70.27 to 131.25. This is compared to its latest closing price of $38.28.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Cathay General Bancorp [CATY] is sitting at 2.50. This is compared to 1 month ago, when its average rating was 2.50.
For the quarter ending in Dec-18 Cathay General Bancorp [CATY] generated $0.16 billion in sales. That’s 0.18% higher than the average estimate of $0.16 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Wed 17 Apr (In 66 Days).
Fundamental Analysis of Cathay General Bancorp [CATY]
Now let’s turn to look at profitability: with a current Operating Margin for Cathay General Bancorp [CATY] sitting at +52.66, this company’s Net Margin is now 31.00%. These measurements indicate that Cathay General Bancorp [CATY] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 13.50, and its Return on Invested Capital has reached 17.60%. Its Return on Equity is 13.29, and its Return on Assets is 1.68. These metrics suggest that this Cathay General Bancorp does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Cathay General Bancorp [CATY] has generated a Total Debt to Total Equity ratio of 34.72. Similarly, its Total Debt to Total Capital is 25.77, while its Total Debt to Total Assets stands at 4.39. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 34.72, and its Long-Term Debt to Total Capital is 25.77. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
The Enterprise Value to Sales for this firm is now 4.88, and its Total Debt to Enterprise Value stands at 0.23.
Similarly, this company’s Total Asset Turnover is 0.04.
Let’s now turn our attention to trading performance: Cathay General Bancorp [CATY] has 80.60M shares outstanding, amounting to a total market cap of $3.03B. Its stock price has been found in the range of 31.94 to 44.05. At its current price, it has moved by -14.76% from its 52-week high, and it has moved 17.57% from its 52-week low.
This stock’s Beta value is currently 1.30, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 56.28. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Cathay General Bancorp [CATY] a Reliable Buy?
Shares of Cathay General Bancorp [CATY], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.