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CATO vs TM

CATO
The Cato Corporation
BEARISH
Price
$2.89
Market Cap
$56.9M
Sector
Consumer Cyclical
AI Confidence
90%
TM
Toyota Motor Corporation
NEUTRAL
Price
$209.75
Market Cap
$273.37B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
CATO
--
TM
11.84
Forward P/E
CATO
2.22
TM
13.29
P/B Ratio
CATO
0.35
TM
11.21
P/S Ratio
CATO
0.09
TM
0.01
EV/EBITDA
CATO
-30.62
TM
4.71

Profitability

Gross Margin
CATO
33.75%
TM
17.6%
Operating Margin
CATO
-9.05%
TM
8.85%
Profit Margin
CATO
-0.9%
TM
7.32%
ROE
CATO
-3.7%
TM
10.03%
ROA
CATO
-2.01%
TM
2.73%

Growth

Revenue Growth
CATO
-4.0%
TM
8.6%
Earnings Growth
CATO
--
TM
-42.3%

Financial Health

Debt/Equity
CATO
0.96
TM
1.05
Current Ratio
CATO
1.24
TM
1.26
Quick Ratio
CATO
0.64
TM
1.03

Dividends

Dividend Yield
CATO
--
TM
2.78%
Payout Ratio
CATO
0.0%
TM
33.2%

AI Verdict

CATO BEARISH

CATO exhibits severe financial distress, highlighted by a critical Piotroski F-Score of 1/9, indicating a near-total failure of fundamental health metrics. While the stock appears superficially cheap with a Price/Book of 0.35 and Price/Sales of 0.09, these are classic 'value trap' indicators given the negative operating margins and declining revenue growth. The combination of a 0/100 technical trend and a -72.8% five-year price collapse suggests a company in structural decline. Without a significant operational turnaround, the current valuation does not provide a sufficient margin of safety.

Strengths
Extremely low Price-to-Sales ratio (0.09)
Trading significantly below book value (P/B 0.35)
Positive gross margin (33.75%)
Risks
Critical financial health (Piotroski F-Score 1/9)
Negative operating margins (-9.05%) and negative ROE
Consistent revenue decline (YoY -4.00%)
TM NEUTRAL

TM shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Attractive valuation with P/E of 11.8
Risks
Premium vs Graham Number ($86.36)

Compare Another Pair

CATO vs TM: Head-to-Head Comparison

This page compares The Cato Corporation (CATO) and Toyota Motor Corporation (TM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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