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Cathay General Bancorp (CATY)

POSITIVE
Financial ServicesBanks - RegionalUnited States

Fundamental

69

Price

$61.87

Market Cap

$4.17B

Part 1 · What the company is worth

Overview

Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. It offers savings accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits, and acceptance of checking, savings, demand deposits, time deposits, real estate, and consumer loans. The company also provides loan products, such as commercial real estate loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, and installment loans to individuals for household and other consumer expenditures. In addition, it offers trade financing, letter of credit, wire transfer, foreign currency spot and forward contract, safe deposit, overdraft, cash checking, automatic teller machine, Internet banking, investment, and other customary bank services, as well as investment products and services, such as stocks, bonds, mutual funds, insurance, annuities, and advisory services. The company was formerly known as Cathay Bancorp, Inc. and changed its name to Cathay General Bancorp in November 2003. Cathay General Bancorp was founded in 1962 and is headquartered in Los Angeles, California.

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$871M

Trailing 12 months (through 6/30/2026)

Net Income

$347M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$364M

Total Equity

$2.93B

Total Liabilities

$21.30B

Current Ratio

-

Interest Coverage

0.56

Debt/EBITDA

-

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

Growth grid

Growth — Revenue

Fair Value Estimation

BankFairly Valued

Fair Value

$55.91

Current Price

$61.87

Margin of Safety

-10.7%

Fair Value Range

$42.20 - $69.61

Estimation Methods

Analyst price target:$65.80
Discounted cash flow (DCF):Not applicable to this type of company
Earnings multiple (P/E):$56.39
Graham growth formula:Not applicable to this type of company
Earnings power value (EPV):Not applicable to this type of company
Justified P/B:$61.75
Dividend discount (Gordon):$26.00
P/FFO, funds from operations:Not applicable to this type of company
Mid-cycle earnings:Not applicable to this type of company
Revenue multiple:Not applicable to this type of company
Analyst Consensus:Hold (1B / 5H / 4S)
Last Earnings Surprise:+11.11%

Valuation Metrics

P/E Ratio

12.17

ROE

10.8%

P/B Ratio

1.36

P/FCF

7.78

Gross Margin

-

ROIC

-

Profitability Radar

Value Creation (Economic Moat)

ROIC

-

WACC

9.6%

ROIC − WACC

-

Fundamental Analysis Criteria

Passed (16)

  • EPS shows upward trend
  • Price CAGR 5.06%
  • P/FCF 7.78
  • P/B Ratio 1.36
  • Operating Margin 50.1%
  • Positive Free Cash Flow
  • CapEx intensity
  • Low reliance on intangibles
  • Price below Graham Number
  • ROE 11.7%
  • Revenue Growth 5Y 8.1%
  • Earnings Surprise avg 9.2%
  • PEG Ratio 1.29
  • Earnings Quality (OCF/NI) 1.56
  • Share Dilution -4.1%
  • Piotroski F-Score 6/9

Failed (6)

  • Debt/Equity ratio
  • Interest Coverage
  • Return on Tangible Assets
  • DCF valuation (Fairly valued)
  • Analyst Consensus 10% Buy
  • Net Margin Trend 38.5% vs 39.2%

Unavailable (5)

  • ROIC NaN%
  • Gross Margin NaN%
  • Dividend Payout NaN%
  • Current Ratio
  • Debt/EBITDA

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.56

High quality: earnings backed by cash

Share Dilution

-4.1%

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Dunson K. Cheng Ph.D.Executive Chairman of the Board80
Mr. Chang Ming LiuCEO, President & Director58
Ms. Diana G. DeenExecutive VP & Chief Risk Officer of Cathy Bank62
Mr. Albert SunExecutive VP & Chief Credit Officer at Cathay Bank69
Mr. Albert J. Wang CPAExecutive VP, CFO & Treasurer50
Ms. Georgia LoAssistant Secretary & Investor Relations-
Ms. May K. ChanSenior VP, General Counsel, Corporate Secretary & Sustainability Officer47

Audit Risk

6

Board Risk

4

Compensation Risk

2

Shareholder Rights Risk

5

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for CATY, sourced from Markets Gazette.

  • 3/9/2026NEGATIVE
    EVP Dumps One-Third of His CATY Shares for $50,200

    A key executive at Catalent Inc. has divested a significant portion of their holdings, selling one-third of their shares for approximately $50,200. This transaction follows a pattern of stake reductions by other high-ranking officials within the regional bank. While the sale amount is relatively small, the consistent insider selling can signal a lack of confidence in the company's future prospects among those with the most intimate knowledge of its operations. Investors often interpret such moves as a bearish indicator, potentially impacting the stock's short-term performance.

via Markets Gazette