Cathay General Bancorp Common Stock (CATY)

FairStock Score: 64/100 — STEADY

Key Financials

Strengths

• Solid return on equity of 11.4% above cost of capital
• Healthy net profit margin of 11.3% showing consistent profitability
• Revenue growth of 19.5% demonstrates strong top-line momentum
• Attractive 2.5% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 0.3 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Cathay General Bancorp Common Stock is a small-cap financial services company valued at $3.7 billion. The business generates $770 million in annual revenue with a 11.3% net margin. From a quality standpoint, Cathay shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.3 warrants caution. On valuation, the stock is attractively valued at 11.5x earnings, with a modest 21% margin of safety vs Graham Number. Growth dynamics show revenue growing at 19.5% and profit growth of 12.9%. The 2.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 64/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Cathay's 19% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer