📊 CATY Key Takeaways
Is Cathay General Bancorp (CATY) a Good Investment?
Cathay General Bancorp exhibits severely depressed profitability metrics with ROE of just 2.9% and ROA of 0.4%, well below peer benchmarks for regional banks. Most critically, interest coverage of 0.7x indicates the bank cannot cover its interest expenses from operating income, signaling financial distress despite a stable balance sheet and positive earnings growth trends.
Cathay General Bancorp appears fundamentally solid, with stable net income, double-digit ROE, healthy 1.3% ROA, and strong cash generation relative to its balance sheet. The balance sheet looks conservative with very low debt-to-equity and ample equity capital, though the reported revenue collapse and distorted margin figures suggest banking-specific reporting noise or pressure in core earning streams that should be monitored closely.
Cathay General Bancorp Key Strengths (CATY)
- Strong balance sheet with $24.0B in assets and conservative leverage (Debt/Equity 0.04x)
- Positive earnings growth with Net Income +10.2% YoY and diluted EPS +14.9% YoY
- Solid liquidity position with $600.3M in cash equivalents
- Stable net income with diluted EPS growth of 14.9% year over year
- Conservative balance sheet with low long-term debt and debt-to-equity of 0.04x
- Healthy profitability for a bank, including 10.8% ROE, 1.3% ROA, and strong operating cash flow
CATY Stock Risks: Cathay General Bancorp Investment Risks
- Interest coverage ratio of 0.7x cannot sustain current debt service from operations, indicating elevated default risk
- Return on Equity of 2.9% and Return on Assets of 0.4% are critically low, destroying shareholder value
- Deteriorating operational efficiency with revenue declining 95.9% YoY suggesting structural business challenges or data quality issues
- Reported revenue declined 95.9% year over year, raising questions about core income momentum or data classification issues
- Interest coverage of 2.4x is only moderate and leaves less room if funding costs stay elevated
- As a commercial bank, earnings remain exposed to credit quality deterioration and deposit/funding pressure
Key Metrics to Watch
- Interest Coverage Ratio trend - must exceed 1.5x minimum for safety
- Return on Equity trajectory - needs to improve toward 8-10% range
- Loan loss provisions and charge-off rates indicating asset quality deterioration
- Net interest income and net interest margin trend
- Credit quality metrics including nonperforming loans and provision expense
Cathay General Bancorp (CATY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 660.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CATY Profit Margin, ROE & Profitability Analysis
CATY vs Finance Sector: How Cathay General Bancorp Compares
How Cathay General Bancorp compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cathay General Bancorp Stock Overvalued? CATY Valuation Analysis 2026
Based on fundamental analysis, Cathay General Bancorp has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cathay General Bancorp Balance Sheet: CATY Debt, Cash & Liquidity
CATY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Cathay General Bancorp's revenue has grown significantly by 38% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.86 reflects profitable operations.
CATY Revenue Growth, EPS Growth & YoY Performance
CATY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $13.1M | $69.5M | $0.98 |
| Q3 2025 | $13.8M | $67.5M | $0.94 |
| Q2 2025 | $12.3M | $66.8M | $0.92 |
| Q1 2025 | $11.9M | $69.5M | $0.98 |
| Q3 2024 | $11.8M | $67.5M | $0.94 |
| Q2 2024 | $10.6M | $66.8M | $0.92 |
| Q1 2024 | $10.0M | $71.4M | $0.98 |
| Q3 2023 | $11.0M | $82.4M | $1.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Cathay General Bancorp Dividends, Buybacks & Capital Allocation
CATY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cathay General Bancorp (CIK: 0000861842)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CATY
What is the AI rating for CATY?
Cathay General Bancorp (CATY) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CATY's key strengths?
Claude: Strong balance sheet with $24.0B in assets and conservative leverage (Debt/Equity 0.04x). Positive earnings growth with Net Income +10.2% YoY and diluted EPS +14.9% YoY. ChatGPT: Stable net income with diluted EPS growth of 14.9% year over year. Conservative balance sheet with low long-term debt and debt-to-equity of 0.04x.
What are the risks of investing in CATY?
Claude: Interest coverage ratio of 0.7x cannot sustain current debt service from operations, indicating elevated default risk. Return on Equity of 2.9% and Return on Assets of 0.4% are critically low, destroying shareholder value. ChatGPT: Reported revenue declined 95.9% year over year, raising questions about core income momentum or data classification issues. Interest coverage of 2.4x is only moderate and leaves less room if funding costs stay elevated.
What is CATY's revenue and growth?
Cathay General Bancorp reported revenue of $14.5M.
Does CATY pay dividends?
Cathay General Bancorp pays dividends, with $25.4M distributed to shareholders in the trailing twelve months.
Where can I find CATY SEC filings?
Official SEC filings for Cathay General Bancorp (CIK: 0000861842) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CATY's EPS?
Cathay General Bancorp has a diluted EPS of $1.29.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CATY's fundamental grade?
Based on our AI fundamental analysis in June 2026, Cathay General Bancorp has a B grade with 71% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CATY stock overvalued or undervalued?
Valuation metrics for CATY: ROE of 2.9% (sector avg: 12%), net margin of 597.3% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is CATY's AI grade for 2026?
Our dual AI analysis gives Cathay General Bancorp a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CATY's free cash flow?
Cathay General Bancorp's operating cash flow is $98.3M, with capital expenditures of $2.3M. FCF margin is 660.1%.
How does CATY compare to other Finance stocks?
Vs Finance sector averages: Net margin 597.3% (avg: 25%), ROE 2.9% (avg: 12%), current ratio N/A (avg: 1.2).