Cathay General Bancorp (CATY) AI Stock Analysis

Established in 1962 and headquartered in Los Angeles, California, Cathay General Bancorp serves as the holding company for Cathay Bank, providing commercial banking services to individuals, professionals, and small to medium-sized businesses across the United States. Its deposit products feature passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. On the lending side, the institution offers commercial mortgages, commercial loans, Small Business Administration loans, residential mortgages, real estate construction loans, home equity lines of credit, and installment loans. It also delivers ancillary solutions including trade financing, letters of credit, wire transfers, foreign currency exchange, and safe deposit boxes.

Between FY2020 and FY2025, revenue achieved a five-year compound annual growth rate of 13.2%, moving from $721.1M in FY2021 to $1.38B in FY2025. Annual net income peaked at $360.6M in FY2022 before settling at $315.1M in FY2025 with a net margin of 22.8% and EPS of $4.54. Operating margin over the same period trended from 53.0% in FY2021 to 29.4% in FY2025. In the trailing twelve months ended June 30, 2026, revenue stood at $795.2M with an operating margin of 62.6% and a profit margin of 43.7%. For the quarter ended June 30, 2026, quarterly revenue grew 13.8% year-over-year while quarterly earnings expanded by 24.5%.

As of June 30, 2026, Cathay General Bancorp held $3.01B in cash and short-term investments against total debt of $154.2M, yielding net cash of $2.86B. Shareholders' equity was $3.05B within total assets of $24.65B, supporting a debt-to-equity ratio of 0.05 and a current ratio of 0.15. In FY2025, operating cash flow reached $368.6M and free cash flow was $363.7M. Capital allocation in FY2025 included $4.9M in capital expenditures, $180.3M directed to share buybacks, and $93.8M in dividends paid, contributing to a 12.5% decrease in shares over five years.

At $59.96 per share, Cathay General Bancorp carries a market cap of $4.00B and trades at a trailing price-to-earnings ratio of 11.7x, below the 12.1x median of its US-listed Financial Services peers. Its forward P/E of 10.1x is also lower than the peer median of 10.8x, while its price-to-sales multiple of 5.0x stands above the peer median of 3.2x. The stock has gained 35.6% over the past year, outperforming the S&P 500 (SPY) return of 16.8%, but its five-year return of 71.4% trails the S&P 500 return of 83.0%.

Cathay General Bancorp pays an annual forward dividend of $1.52 per share, representing a 2.54% dividend yield with a payout ratio of 28.9%. Dividends are distributed on a quarterly frequency and have been paid for 36 consecutive years, demonstrating a five-year annualized dividend growth rate of 1.9%. The most recent ex-dividend date was August 28, 2026.

Wall Street coverage includes 1 Strong Buy, 0 Buys, 4 Holds, and 1 Sell. The mean price target of $65.00 represents an 8.4% premium over the last close of $59.96. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $892.1M and EPS of $5.56, indicating 22.5% EPS growth. Six analysts covering the following year project FY2027 revenue of $929.1M and EPS of $5.95. The bank beat EPS estimates in 3 of the last 4 quarters, with its next earnings date scheduled for October 21, 2026.

This page is an AI-written research summary of Cathay General Bancorp (CATY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: CATY income statement, CATY balance sheet, CATY key metrics, CATY analyst forecast, CATY chart. See the CATY stock overview for the latest quote and news.