Cathay General Bancorp Common Stock (CATY)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for banks I can understand, bought at a sensible price and run with consistent underwriting. Cathay General is a straightforward regional lender: deposits fund commercial and real-estate loans to individuals and small/medium businesses. The recent record is decent: in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $92.2M and diluted EPS $1.37, up from $77.5M and $1.10 in fiscal Q2 2025. For FY2025, net income was $315.1M and diluted EPS $4.54, versus $286.0M and $3.95 in FY2024. But I note FY2023 net income was $354.1M and EPS $4.86, so earnings have not marched upward in a straight line. FairStock's price-based measures at the 2026-10-13 close show a P/E of 11.59, P/B of 1.30 and dividend yield of 2.56%. FairStock's ROE calculation is 11.71%, acceptable but not extraordinary, and the 0.88 beta suggests less volatility than the market. The FairStock score is 64/100 and the Lynch category is SLOW GROWER, with profit growth of 6.6% a year over five years and revenue growth of 10.8%. A PEG of 0.46 and Piotroski F-score of 7/9 hint that expectations are modest and the balance sheet is not flashing alarm. Still, a bank's real risk is credit. The data lacks CET1, NIM, nonperforming loans, reserves and combined ratio, so I cannot fully judge capital or underwriting. At 1.3 times book, I would want either better growth or clearer credit visibility. This looks like a fair-to-modestly-attractive bank, not a fat pitch.

In plain English: Cathay General Bancorp is the parent of Cathay Bank, a regional bank that takes deposits and makes commercial and real estate loans. It is profitable, with recent quarterly earnings above the year-earlier level, and it pays a moderate dividend. At the recent close, the price looks reasonable rather than clearly cheap when compared with its profits and asset value, and the business has been growing slowly over the long run.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer