The Cato (FRA:CO2A) Risk Assessment

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What is The Cato Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of The Cato is: Moderate Risk: Sensitive, better choose undervalued stock.

Competitive Comparison of The Cato's Risk Assessment

For the Apparel Retail subindustry, The Cato's Risk Assessment, along with its competitors' market caps and Risk Assessment data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

The Cato's Risk Assessment Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's Risk Assessment distribution charts can be found below:

* The bar in red indicates where The Cato's Risk Assessment falls into.

The Cato (FRA:CO2A) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

The Cato Risk Assessment Related Terms

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The Cato (FRA:CO2A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » The Cato Corp (FRA:CO2A) » Definitions » Risk Assessment

Comparable Companies

Traded in Other Exchanges

CATO:USA

Address

8100 Denmark Road, Charlotte, NC, USA, 28273-5975

Website

https://www.catofashions.com

The Cato Corp operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. Its primary objective is to be the fashion specialty retailer for fashion and value in its markets. The company operates through the following business segments: Retail and Credit. The Retail segment which generates majority revenue offers fashion specialty stores. The Credit segment involves credit card services.

The Cato (FRA:CO2A) Headlines

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