📊 CATY Key Takeaways
Investment Thesis
Cathay General Bancorp exhibits financially inconsistent data with implausibly high margins (585.8% net margin) and dramatic revenue decline (-95.9% YoY) that suggest either data quality issues or significant operational disruption. While the company maintains a strong balance sheet with low leverage (0.04x debt/equity) and solid free cash flow generation, the reliability of these metrics is severely compromised by the anomalous financial ratios.
CATY Strengths
- Strong balance sheet with low debt/equity ratio (0.04x) indicating minimal financial risk
- Substantial free cash flow generation ($363.7M) relative to reported revenue
- Stable stockholders' equity ($2.9B) and significant asset base ($24.2B) provide capital cushion
CATY Risks
- Critical data integrity concerns - net margins of 585.8% and operating margins of 725.4% are economically implausible for a commercial bank and suggest data errors or accounting anomalies
- Severe revenue contraction of 95.9% YoY indicates either business collapse, one-time accounting adjustments, or corrupted data points
- Low interest coverage ratio (2.4x) suggests limited debt service capacity relative to earnings volatility
Key Metrics to Watch
- Revenue stability and composition (verify actual vs reported decline)
- Net interest margin and loan yield trends (core banking profitability)
- Asset quality metrics including non-performing loan ratios and loan loss provisions
CATY Financial Metrics
💡 AI Analyst Insight
The 676.0% 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 Profitability Ratios
CATY vs Finance Sector
How CATHAY GENERAL BANCORP compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CATY Balance Sheet & Liquidity
CATY 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 Growth Metrics (YoY)
CATY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $10.5M | $89.0M | $1.18 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CATY Capital Allocation
CATY SEC Filings
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 an AI rating of HOLD with 35% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CATY's key strengths?
Strong balance sheet with low debt/equity ratio (0.04x) indicating minimal financial risk. Substantial free cash flow generation ($363.7M) relative to reported revenue.
What are the risks of investing in CATY?
Critical data integrity concerns - net margins of 585.8% and operating margins of 725.4% are economically implausible for a commercial bank and suggest data errors or accounting anomalies. Severe revenue contraction of 95.9% YoY indicates either business collapse, one-time accounting adjustments, or corrupted data points.
What is CATY's revenue and growth?
CATHAY GENERAL BANCORP reported revenue of $53.8M.
Does CATY pay dividends?
CATHAY GENERAL BANCORP pays dividends, with $93.8M 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 $4.54.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.