Cathay General Bancorp (CATY) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+8.1%

$70.85

vs $65.57 price

Levered DCF

$80.27

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

-0.63

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	10.59×	11.99×	9.13×	8.41×	11.28×	11.18×	10.9×	10.01×
P/B	1.12×	1.21×	1.18×	1.23×	1.38×	1.06×	1.33×	1.28×
P/S	2.37×	2.47×	2.47×	3.34×	4.67×	3.45×	3.74×	3.78×
EV / EBITDA	7.88×	10.47×	8.94×	7.1×	8.6×	10.17×	10.28×	9.37×
Gross margin	55.1%	49.8%	59.8%	85.5%	92.7%	72.3%	77.0%	83.7%
Operating margin	29.4%	22.8%	30.8%	52.0%	53.0%	34.2%	42.9%	46.9%
Net margin	22.8%	20.6%	27.0%	39.7%	41.4%	30.8%	34.3%	37.8%
Current ratio	0.2×	0.09×	0.13×	0.15×	0.2×	0.16×	0.14×	0.14×
Debt / equity	0.07×	0.08×	0.26×	0.27×	0.08×	0.13×	0.38×	0.35×
Interest coverage	0.72×	0.48×	0.81×	4.02×	5.55×	1.71×	1.8×	2.77×
Dividend yield	2.9%	2.9%	3.0%	3.3%	3.0%	3.9%	3.3%	3.1%
Payout ratio	29.8%	34.3%	27.9%	28.0%	33.3%	43.1%	35.5%	30.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.8%	10.0%	12.9%	14.6%	12.2%	9.5%	12.2%	12.8%
Return on invested capital	-4.6%	8.5%	9.4%	10.5%	10.5%	7.8%	8.2%	8.8%
Return on assets	1.3%	1.2%	1.5%	1.6%	1.4%	1.2%	1.5%	1.6%
Free cash flow yield	11.1%	9.5%	11.8%	15.3%	9.8%	12.3%	14.1%	12.1%
Earnings yield	9.6%	8.3%	10.9%	11.9%	8.9%	8.9%	9.2%	10.0%
Enterprise value	$3.3B	$3.5B	$3.8B	$3.5B	$3.4B	$2.7B	$3.7B	$3.2B
Net debt / EBITDA	0.15×	0.21×	1.27×	0.94×	0.15×	0.69×	1.93×	1.48×
Cash conversion cycle (days)	26	26	27	33	29	29	24	26