Cathay General Bancorp

Valuation Analysis

About the Company

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

Cathay General Bancorp Stock at a Glance

Cathay General Bancorp (CATY) is currently trading at $60.98 with a market capitalization of $4.1B. The trailing P/E ratio stands at 12.57x, with a forward P/E of 10.34x. The 52-week range spans from $42.01 to $61.02; the current price is 0.1% below the yearly high. Year-over-year revenue growth stands at +14.1%. The net profit margin stands at 43.21%.

💰 Dividend

Cathay General Bancorp pays an annual dividend of $1.44 per share, representing a yield of 2.36%. The payout ratio stands at 28.87%.

📊 Analyst Rating

5 analysts rate Cathay General Bancorp (CATY) on consensus: None. The average price target is $57.40, implying -5.87% from the current price. Analyst price targets range from $47.00 to $70.00.

Cathay General Bancorp: The Investment Case in Detail

Cathay General Bancorp (CATY) operates in the Financial Services — specifically Banks - Regional — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 14.1% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 31.6% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

Valuation in Context

The PEG ratio at 1.33 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric.

What to Watch Next

• The forward P/E of 10.34x is meaningfully below the trailing 12.57x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 99.8% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior.

Trading Data

💵 Dividend Info

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