Cato Free Cash Flow vs Cost of Revenue Analysis

CATO Stock  USD 5.89  0.52  9.68%   
Cato financial indicator trend analysis is way more than just evaluating Cato prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Cato is a good investment. Please check the relationship between Cato Free Cash Flow and its Cost Of Revenue accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cato Corporation. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.

Free Cash Flow vs Cost Of Revenue

Free Cash Flow vs Cost of Revenue Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Cato Free Cash Flow account and Cost of Revenue. At this time, the significance of the direction appears to have fragmental relationship.
The correlation between Cato's Free Cash Flow and Cost of Revenue is 0.46. Overlapping area represents the amount of variation of Free Cash Flow that can explain the historical movement of Cost of Revenue in the same time period over historical financial statements of Cato Corporation, assuming nothing else is changed. The correlation between historical values of Cato's Free Cash Flow and Cost of Revenue is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Free Cash Flow of Cato Corporation are associated (or correlated) with its Cost of Revenue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Cost of Revenue has no effect on the direction of Free Cash Flow i.e., Cato's Free Cash Flow and Cost of Revenue go up and down completely randomly.

Correlation Coefficient

0.46
Relationship DirectionPositive 
Relationship StrengthWeak

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Cost Of Revenue

Cost of Revenue is found on Cato income statement and represents the costs associated with goods and services Cato provides. Indirect cost, such as salaries, is not included. In other words, cost of revenue is the total cost incurred to obtain a sale. It is more than the traditional cost of goods sold, since it includes specific selling and marketing activities.
Most indicators from Cato's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Cato current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cato Corporation. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
At this time, Cato's Tax Provision is very stable compared to the past year. As of the 28th of March 2024, Enterprise Value Multiple is likely to grow to 10.27, while Selling General Administrative is likely to drop about 196.1 M.
 2021 2022 2023 2024 (projected)
Gross Profit316.2M249.6M287.0M250.8M
Total Revenue769.3M759.3M873.1M723.2M

Cato fundamental ratios Correlations

0.640.650.920.750.490.110.490.20.510.340.740.39-0.470.270.810.160.60.560.230.790.760.81-0.110.75-0.14
0.640.370.560.510.450.10.320.280.50.540.430.19-0.40.290.560.380.670.50.270.50.680.56-0.270.37-0.23
0.650.370.470.570.250.010.480.140.260.350.630.01-0.040.150.480.050.180.28-0.090.570.30.30.150.70.19
0.920.560.470.510.620.310.210.040.630.40.50.44-0.670.430.69-0.050.670.70.490.590.740.79-0.330.52-0.39
0.750.510.570.51-0.05-0.490.930.6-0.030.140.980.260.13-0.330.920.570.220.02-0.260.990.590.810.450.890.44
0.490.450.250.62-0.050.87-0.27-0.40.990.41-0.110.36-0.750.930.09-0.360.840.980.86-0.020.650.21-0.680.07-0.71
0.110.10.010.31-0.490.87-0.67-0.740.860.28-0.520.18-0.720.96-0.34-0.630.60.820.82-0.460.27-0.22-0.79-0.26-0.81
0.490.320.480.210.93-0.27-0.670.69-0.27-0.030.910.20.47-0.540.780.6-0.03-0.21-0.440.90.380.640.70.80.7
0.20.280.140.040.6-0.4-0.740.69-0.380.020.60.060.42-0.580.490.67-0.16-0.33-0.410.590.120.470.510.250.52
0.510.50.260.63-0.030.990.86-0.27-0.380.48-0.090.33-0.780.930.11-0.320.870.990.860.00.680.22-0.720.09-0.74
0.340.540.350.40.140.410.28-0.030.020.480.16-0.23-0.550.390.280.120.650.520.50.170.490.27-0.560.2-0.53
0.740.430.630.50.98-0.11-0.520.910.6-0.090.160.220.16-0.350.870.490.14-0.02-0.330.980.490.760.460.910.47
0.390.190.010.440.260.360.180.20.060.33-0.230.22-0.10.220.27-0.040.320.410.260.330.430.460.020.250.01
-0.47-0.4-0.04-0.670.13-0.75-0.720.470.42-0.78-0.550.16-0.1-0.77-0.10.26-0.79-0.78-0.760.08-0.54-0.230.890.060.93
0.270.290.150.43-0.330.930.96-0.54-0.580.930.39-0.350.22-0.77-0.21-0.480.710.90.81-0.30.4-0.1-0.82-0.14-0.81
0.810.560.480.690.920.09-0.340.780.490.110.280.870.27-0.1-0.210.510.380.180.00.940.710.930.280.790.22
0.160.380.05-0.050.57-0.36-0.630.60.67-0.320.120.49-0.040.26-0.480.510.03-0.3-0.370.530.290.360.350.260.37
0.60.670.180.670.220.840.6-0.03-0.160.870.650.140.32-0.790.710.380.030.890.790.250.890.47-0.680.26-0.7
0.560.50.280.70.020.980.82-0.21-0.330.990.52-0.020.41-0.780.90.18-0.30.890.880.070.720.32-0.70.15-0.72
0.230.27-0.090.49-0.260.860.82-0.44-0.410.860.5-0.330.26-0.760.810.0-0.370.790.88-0.210.570.19-0.74-0.18-0.81
0.790.50.570.590.99-0.02-0.460.90.590.00.170.980.330.08-0.30.940.530.250.07-0.210.610.860.410.890.39
0.760.680.30.740.590.650.270.380.120.680.490.490.43-0.540.40.710.290.890.720.570.610.75-0.290.55-0.34
0.810.560.30.790.810.21-0.220.640.470.220.270.760.46-0.23-0.10.930.360.470.320.190.860.750.130.660.05
-0.11-0.270.15-0.330.45-0.68-0.790.70.51-0.72-0.560.460.020.89-0.820.280.35-0.68-0.7-0.740.41-0.290.130.340.98
0.750.370.70.520.890.07-0.260.80.250.090.20.910.250.06-0.140.790.260.260.15-0.180.890.550.660.340.34
-0.14-0.230.19-0.390.44-0.71-0.810.70.52-0.74-0.530.470.010.93-0.810.220.37-0.7-0.72-0.810.39-0.340.050.980.34
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Cato Account Relationship Matchups

Cato fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets685.0M591.5M633.8M553.1M636.1M409.5M
Other Current Liab136.2M44.7M67.8M43.6M50.2M46.0M
Total Current Liabilities199.3M181.9M244.1M203.0M233.4M125.3M
Total Stockholder Equity316.5M246.5M254.2M226.6M260.6M240.5M
Property Plant And Equipment Net289.5M272.4M244.3M244.7M281.4M295.4M
Net Debt198.5M189.2M164.6M154.8M178.0M186.9M
Retained Earnings203.5M129.3M134.2M104.7M120.4M196.6M
Cash11.8M17.5M19.8M20.0M23.0M34.4M
Non Current Assets Total322.2M300.9M278.1M275.5M316.8M332.6M
Non Currrent Assets Other24.1M988K22.6M19.7M22.6M23.8M
Cash And Short Term Investments212.2M143.9M165.8M128.7M148.0M125.6M
Net Receivables26.1M52.7M55.8M26.5M30.5M42.7M
Common Stock Shares Outstanding23.7M22.5M21.1M19.9M17.9M26.2M
Liabilities And Stockholders Equity685.0M591.5M633.8M553.1M636.1M409.5M
Non Current Liabilities Total169.2M163.0M135.4M123.6M142.1M149.2M
Inventory115.4M84.1M124.9M112.1M128.9M98.0M
Other Current Assets5.2M5.8M5.3M6.7M6.0M10.3M
Other Stockholder Equity110.8M115.3M119.5M122.4M140.8M147.8M
Total Liab368.5M345.0M379.6M326.5M375.5M394.3M
Property Plant And Equipment Gross289.5M272.4M523.9M526.8M605.9M636.2M
Total Current Assets362.8M290.6M355.7M277.7M319.3M282.0M
Accumulated Other Comprehensive Income1.4M1.2M(280K)(1.2M)(1.4M)(1.5M)
Accounts Payable68.4M73.8M109.5M92.0M105.7M79.4M
Common Stock Total Equity832K826K820K762K685.8K797.6K
Short Term Investments200.4M126.4M146.0M108.7M124.9M125.1M
Common Stock820K762K728K691K621.9K778.4K
Other Liab40.0M22.0M19.7M17.9M20.6M26.3M
Other Assets31.2M31.4M27.3M31.9M36.7M38.6M
Property Plant Equipment94.3M88.7M272.4M244.3M281.0M295.1M
Net Tangible Assets356.8M485.7M246.5M254.2M228.8M305.0M
Long Term Investments1.3M1.3M1.8M1.9M1.7M1.4M
Non Current Liabilities Other22.0M19.7M17.9M16.2M14.6M24.8M
Net Invested Capital316.5M246.5M254.2M226.6M203.9M224.9M

Pair Trading with Cato

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cato position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cato will appreciate offsetting losses from the drop in the long position's value.

Moving together with Cato Stock

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The ability to find closely correlated positions to Cato could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cato when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cato - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cato Corporation to buy it.
The correlation of Cato is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cato moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cato moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cato can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Cato offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cato's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cato Corporation Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cato Corporation Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cato Corporation. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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When running Cato's price analysis, check to measure Cato's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cato is operating at the current time. Most of Cato's value examination focuses on studying past and present price action to predict the probability of Cato's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cato's price. Additionally, you may evaluate how the addition of Cato to your portfolios can decrease your overall portfolio volatility.
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Is Cato's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cato. If investors know Cato will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cato listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.52)
Dividend Share
0.68
Earnings Share
(0.16)
Revenue Per Share
34.603
Quarterly Revenue Growth
(0.02)
The market value of Cato is measured differently than its book value, which is the value of Cato that is recorded on the company's balance sheet. Investors also form their own opinion of Cato's value that differs from its market value or its book value, called intrinsic value, which is Cato's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cato's market value can be influenced by many factors that don't directly affect Cato's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cato's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cato is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cato's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.