Cathay General Bancorp (CATY)
NASDAQ:CATY
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Cathay General Bancorp
(NASDAQ:CATY)
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Rating:78Outperform
Price Target:
$65.00
▲(19.82% Upside)
Action:Reiterated
Date:05/09/26
CATY scores well on financial quality (strong capitalization and cash generation) and valuation (low P/E with a solid dividend). Technicals are supportive but near overbought, and the latest earnings call was broadly constructive on margins/efficiency and capital returns, offset by softer balance-sheet growth and securities/credit caution.
Positive Factors
Conservative balance sheet and strong capital
Very low leverage and steadily growing equity support regulatory well-capitalized status and provide durable loss-absorbing capacity. That positioning lets management sustain lending, absorb credit volatility, and fund dividends/buybacks without forcing distress asset sales, improving long-term resilience.
Negative Factors
Sharp TTM revenue decline
A large, persistent revenue drop materially weakens top-line durability and limits operating leverage benefits. Even with good margins, sustained revenue contraction constrains earnings growth, capital generation, and the bank's ability to selectively expand credit or invest in longer-term initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and strong capital
Very low leverage and steadily growing equity support regulatory well-capitalized status and provide durable loss-absorbing capacity. That positioning lets management sustain lending, absorb credit volatility, and fund dividends/buybacks without forcing distress asset sales, improving long-term resilience.
Read all positive factors
Cathay General Bancorp (CATY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.79B
Dividend Yield2.72%
Average Volume (3M)474.25K
Price to Earnings (P/E)9.6
Beta (1Y)0.87
Revenue Growth0.18%
EPS Growth22.52%
CountryUS
Employees1,266
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)4.88
Shares Outstanding67,035,480
10 Day Avg. Volume691,581
30 Day Avg. Volume474,251
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)1.12
Price to Sales (P/S)2.37
P/FCF Ratio9.01
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue2.81
Enterprise Value/Gross Profit5.04
Enterprise Value/Ebitda8.62
Forecast
1Y Price Target
$53.67Price Target Upside-1.08% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)5.46
Revenue Forecast (FY)$880.85M
Cathay General Bancorp Business Overview & Revenue Model
Company Description
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. The company offers variou...
How the Company Makes Money
Cathay General Bancorp primarily makes money through its banking subsidiary by earning (1) net interest income and (2) noninterest income. Net interest income is generated from the spread between interest earned on interest-earning assets—such as ...
Cathay General Bancorp Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The call presented a predominantly constructive picture: underlying profitability and margin trends improved (NIM up 7 bps, EPS resilient), efficiency and capital return metrics were strong (dividend +11.8% and completed buyback with a new program approved), credit metrics improved (lower net charge-offs and better NPA ratio), and management proactively repositioned the securities portfolio to support margins. Headwinds include modest q/q declines in net income and NII, a $15.7 million AFS impairment, softer loan and deposit growth (loans +0.2% q/q; deposits -1% q/q), heightened competition for brokered deposits, and an allowance increase driven by recalibration for office CRE stress. Overall, the positive operational and capital actions and improving efficiency/credit metrics outweigh the near-term growth and securities noise.Positive Updates
Solid Profitability and EPS
Reported net income of $86.9 million and diluted EPS of $1.29. Excluding notable one-time securities items, diluted EPS would have been only $0.02 lower, indicating underlying earnings stability.
Negative Updates
Net Income and NII Slight Decline
Net income decreased 4% linked quarter. Net interest income was $194 million, down $0.8 million q/q, reflecting day-count effects and some pressure on loan yields from prior Fed rate cuts.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid Profitability and EPS
Reported net income of $86.9 million and diluted EPS of $1.29. Excluding notable one-time securities items, diluted EPS would have been only $0.02 lower, indicating underlying earnings stability.
Read all positive updates
Company Guidance
Management guided to full‑year loan growth of 3.5%–4.5% and deposit growth of 4%–5%, expects adjusted noninterest expense to rise 3.5%–4.5%, and reaffirmed a net interest margin target of about 3.40%–3.50% (340–350 bps) while noting the NIM/NII outlook no longer assumes any 2026 rate cuts; they also project an effective tax rate of roughly 21%. Capital return actions include a quarterly cash dividend of $0.38 (up 11.8%), completion of the prior $150 million repurchase (244,000 shares at an average $51.31) and board approval of a new $150 million buyback (subject to regulatory approval). Management said a recent securities reposition (sold ~$210M of lower‑yielding MBS and reinvested ~$197M) should add roughly 2–2.5 bps to NIM in 2026 (about $4M of NII) with an earn‑back under three years; portfolio duration is just under two years with nearly two‑thirds of cash flows returning this year.Cathay General Bancorp Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
84
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.38B | 1.38B | 1.39B | 1.31B | 908.10M | 721.11M |
| Gross Profit | 769.48M | 762.46M | 692.22M | 784.06M | 775.97M | 668.37M |
| EBITDA | 450.20M | 431.08M | 334.37M | 421.69M | 492.34M | 397.96M |
| Net Income | 332.50M | 315.12M | 285.98M | 354.12M | 360.64M | 298.30M |
Balance Sheet | ||||||
| Total Assets | 24.05B | 24.23B | 23.05B | 23.08B | 21.95B | 20.89B |
| Cash, Cash Equivalents and Short-Term Investments | 135.54M | 1.80B | 1.71B | 2.43B | 2.64B | 3.58B |
| Total Debt | 155.72M | 208.92M | 227.73M | 709.72M | 659.25M | 192.97M |
| Total Liabilities | 21.06B | 21.30B | 20.21B | 20.34B | 19.47B | 18.44B |
| Stockholders Equity | 2.99B | 2.93B | 2.85B | 2.74B | 2.47B | 2.45B |
Cash Flow | ||||||
| Free Cash Flow | 357.22M | 363.66M | 325.52M | 381.34M | 464.00M | 330.59M |
| Operating Cash Flow | 367.95M | 368.57M | 329.15M | 384.74M | 467.39M | 334.32M |
| Investing Cash Flow | -1.06B | -857.32M | 184.03M | -1.48B | -1.85B | -859.92M |
| Financing Cash Flow | 516.88M | 873.64M | -302.47M | 758.74M | 94.74M | 1.55B |
Cathay General Bancorp Technical Analysis
Positive
54.25
Price Trends
50.85
Positive
50.28
Positive
48.56
Positive
Market Momentum
1.16
Negative
69.53
Neutral
77.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CATY, the sentiment is Positive. The current price of 54.25 is above the 20-day moving average (MA) of 51.23, above the 50-day MA of 50.85, and above the 200-day MA of 48.56, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 69.53 is Neutral, neither overbought nor oversold. The STOCH value of 77.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CATY.
Cathay General Bancorp Risk Analysis
Cathay General Bancorp disclosed 45 risk factors in its most recent earnings report. Cathay General Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cathay General Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.79B | 9.62 | 11.37% | 2.72% | 0.18% | 22.52% | |
75 Outperform | $3.61B | 9.34 | 18.53% | 3.38% | 1.43% | 22.08% | |
72 Outperform | $3.71B | 11.52 | 7.01% | 3.05% | 27.40% | 13.49% | |
71 Outperform | $4.04B | 9.64 | 11.45% | 3.52% | -0.24% | 23.07% | |
71 Outperform | $2.23B | 9.42 | 30.56% | ― | 13.52% | 15.83% | |
68 Neutral | $3.36B | 13.72 | 9.13% | 5.24% | -5.29% | 45.44% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
CATY
Cathay General Bancorp
55.82
12.77
29.65%
FBP
First Bancorp Puerto Rico
23.09
2.97
14.74%
FIBK
First Interstate Bancsystem
34.11
7.79
29.61%
FULT
Fulton Financial
20.67
3.17
18.13%
INDB
Independent Bank
76.17
13.76
22.05%
TBBK
Bancorp
52.62
-2.00
-3.66%
Cathay General Bancorp Corporate Events
Business Operations and StrategyStock Buyback
Cathay General Bancorp Announces New $150 Million Buyback
Positive
Apr 23, 2026
On April 23, 2026, Cathay General Bancorp announced that its board had adopted a new share repurchase program authorizing buybacks of up to $150 million of its common stock, to be executed in the open market or through private transactions. The mo...
Business Operations and StrategyStock BuybackFinancial Disclosures
Cathay General Bancorp Reports Lower Q1 2026 Earnings
Negative
Apr 22, 2026
Cathay General Bancorp on April 22, 2026 reported unaudited first-quarter 2026 net income of $86.9 million, or $1.29 per diluted share, down from $90.5 million, or $1.33, in the fourth quarter of 2025, though returns on assets and equity remained ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.