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65

CATY

🏦 Financial Services

Cathay General Bancorp

Conservative #184Aggressive #649Low RiskModerate 64ML↑ 18pt
$52.58+2.72%
Day High$52.72
Day Low$51.37
Volume0.3M
Mkt Cap$3.6B
52W Low $3652W High $55
Market Cap
$3.6B
P/E Ratio
11.5
Sector avg: 49.4
Rev Growth
-0.4%
Sector avg: 13.4%
Earnings Growth
10.2%
Profit Margin
22.8%
Sector avg: -2.8%
Debt/Equity
0.07

Why This Score

CATY scores 65.4 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • High net margin of 22.8%, indicating pricing power and operational efficiency.
  • Attractively valued at 11.5x earnings, below the market average.
  • Low volatility (5.4% annualized) — well-suited for risk-averse portfolios.
  • Minimal leverage (D/E 0.07) provides financial flexibility and downside protection.
  • Positive but moderate momentum (17%) — steady appreciation without overheating.
Risk Factors
  • Liquidity concern: Limited trading volume or float results in a 2-point penalty for execution risk.
  • Signal divergence: Fundamental and ML signals disagree by a significant margin, reducing confidence.

Moderate penalties (-3.2 points) reflect identified risk factors. The overall score balances these against the stock's fundamental strengths.

Score Breakdown

Overall Score65.4
Fundamental Score69.3
ML Score46.0

Score by Horizon

3 Month
81.5
6 Month
91.1
Primary
1 Year
95.9

Quality Assessment

B
Earnings Grade
Solid fundamentals with minor quality concerns
Quality Flags
False stability: 0.054 vol with only -0.4% revenue growth — stagnation, not safety (declining revenue overrides sector exemption)

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
100
Advancing
Sentiment (2.5%)
48
Neutral
Analyst (6.4%)
56
Neutral
Tradability (post-hoc)
77
Grade B
Base
62.6
SHAP
+3.1
Factors
+0.9
Divergence
-1.2
Final
65.4
Positive adjustment
Negative adjustment
Base blend
Final score

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)66.0
Technical (Momentum, Weinstein, Volatility)80.0
External (Sentiment, Analyst, Macro)76.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage89%

Growth Estimates

Short-term
+0.9% to +7.9%
Medium-term
+1.8% to +12.4%
Long-term
+3.4% to +17.7%

ML Model Core Features100 trained inputs → ML Score: 46

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score55.8/100
Target Upside+2.0%
Coverage13 analysts
Market Sentiment
Sentiment Score48.1/100
News Volume1 articles
Technical Stage
Weinstein Stage2 — Advancing
12M Momentum+0.2%
6M Momentum+0.1%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration+8.6%
Momentum ConsistencyModerate (0.49)
Relative Strength vs Sector+8.1%
Trend Strength (ADX Proxy)Strong (3.1)
Momentum Quality+0.155
Momentum BreadthBroad ✓
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
38%
High risk — cheap + stagnating
Sector RevGr Rank
P20
Revenue growth vs Financial Services peers
Sector PE Rank
P60
Valuation vs Financial Services peers
Sector FCF Rank
P80
Free cash flow vs Financial Services peers
Growth Deviation
-0.1σ
Z-score vs sector median
Stagnation Flag
YES
Below-sector growth + cheap PE
Value trap warning: This stock scores in the top quartile for value trap risk. The combination of below-sector-median revenue growth, low PE, and high free cash flow yield suggests the market is pricing in stagnation. The ML model's sector-relative features (trained on 30 years of data) reduce this stock's score accordingly.

Analysis Signals

Scoring Factors
Fundamental score of 67 relative to sector peers67/100
Machine learning model ranks this stock at the 85th percentileP85
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +5.0pt (features align with model priorities)—
Blend: 91% fund (66.7) + 9% ML (84.8) + SHAP(+5.0) = 73.3—
Factor quality: +1.4pt (multi-factor composite)—
Risk assessment: low. Annualized volatility 5.4%. Stability bonus of +11.2 points. Max drawdown 8% (-0.1 pts)Low
Market cap adjustment: +0.5 points ($3.6B market cap)+0.5 pts
Divergence penalty: -1.1pt (ML 18pt higher)—
Risk Factors
Earnings quality grade B: adequate earnings quality with minor concerns. Score adjusted by -24 pointsGrade B
Quality concern: High accrual ratio (-31.3%) — earnings quality concern; False stability: 0.1 vol with only -0.4% revenue growth — stagnation, not safety (declining revenue overrides sector exemption); CRE concentration risk: regional bank with likely elevated commercial real estate exposure — forward-looking impairment risk not captured by trailing fundamentalsFlag

Sector Peer Comparison(Financial Services — Rank #59 of 356 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
CATY65.411.5-0.4%22.8%$3.6B
CME84.927.29.9%57.5%$109.0B
CINF82.310.711.4%18.9%$25.4B
ACT82.08.92.4%54.6%$6.0B
SEIC80.914.010.7%27.3%$9.6B
TROW79.310.13.1%28.5%$20.5B
FHB78.311.83.2%24.2%$3.3B
MCHB77.70.0123.7%23.2%$3.4B
TRMK75.611.934.8%19.3%$2.7B
BCAL74.39.926.2%27.1%$613M
NMIH73.97.78.4%55.1%$3.0B
FFIN73.218.811.7%30.7%$4.8B
TW73.130.018.9%39.6%$24.8B
VCTR73.118.38.8%32.3%$4.9B
VLY72.412.5-2.2%17.1%$7.5B
QQQX72.310.448.6%257.3%$1.4B
Sector Average45.849.413.4%-2.8%—

Market Sentimentvia FMP

Analyst Consensus
Hold13 analysts
Buy: 4Hold: 8Sell: 1
Price Target
$52consensus
Low $52Median $52High $52
-1.1% to consensus target

Company Overviewvia FMP

Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. It also provides loan products, such as commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, as well as installment loans to individuals for household, and other consumer expenditures. In addition, the company offers trade financing, letter of credit, wire transfer, forward currency spot and forward contract, traveler's check, safe deposit, night deposit, social security payment deposit, collection, bank-by-mail, drive-up and walk-up window, automatic teller machine, Internet banking, investment, and other customary bank services, as well as securities and insurance products. As of March 1, 2022, it operated 31 branches in Southern California, 16 branches in Northern California, 10 branches in New York, four branches in Washington, two branches in Illinois, and two branches in Texas, as well as one branch each in Maryland, Massachusetts, Nevada, and New Jersey, and Hong Kong; and a representative office each in Beijing, Taipei, and Shanghai. The company was founded in 1962 and is headquartered in Los Angeles, California.

CEO
Chang Ming Liu
Employees
1,266
Beta
0.85
Industry
Banks - Regional
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
43.4
Neutral
Trend
Bullish
10-day vs 50-day MA
From 52W High
-4.4%
High: $54.99
From 52W Low
+45.8%
Low: $36.06
Moving Averages
10-Day
$52.80
Below
20-Day
$52.70
Below
50-Day
$51.20
Above
200-Day
$48.00
Above
60-Day Support
$47.77
60-Day Resistance
$54.99
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 2 — AdvancingScore: 69/100

Stock is in an uptrend above the 200-day moving average. This is the stage where institutional accumulation typically occurs. The 50-day SMA provides support.

Favorable technical position; 50-day SMA acts as support
Price vs 200 SMA
+9.5%
200 SMA Slope (60d)
+5.32%
Rising
Volume Ratio
0.89x
10d avg vs 50d avg
Days in Stage
67
Confidence: 90%

Financial Statementslast 4 quarters via FMP

MetricQ4 2025Q3 2025Q2 2025Q1 2025
Revenue$361M$355M$338M$331M
Gross Profit$223M$182M$185M$172M
Operating Income$131M$94M$96M$87M
Net Income$91M$78M$77M$70M
EPS (Diluted)$1.33$1.13$1.10$0.98
Gross Margin61.8%51.2%54.8%52.1%
Operating Margin36.2%26.4%28.5%26.2%
Net Margin25.1%21.9%22.9%21.0%

Why This Stock

Financial ServicesP/E ratio of 11.5Profit margin 22.8%Valuation below sector median (P/E 11.5)

Tradability FilterGrade B — 77/100Score impact: +3.1pt

Volume
72
423K avg/day
Dollar Vol
81
$22M/day
Float
86
65M shares
Mkt Cap
64
$3.6B
Range
86
52% spread
Composite Liquidity Score77/100
FDCBA

Multi-Year Range Analysis

Sideways: 16/100
YearLowHighRangeStatus
2021$35.51$46.4326.7%Moderate
2022$37.37$48.8826.7%Moderate
2023$27.24$45.7250.7%Wide
2024$33.88$55.2948%Wide
2025$36.06$51.9536.1%Wide
3-Year Range
68%
Narrow Years
2 / 5
Sideways Penalty
None

Growth Projection Adjustment

0.49x dampening
slight revenue declinestagnation flag

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
95.6%
Outstanding Shares
68M
Bid-Ask Spread
52.0%
Institutional Tradable
Yes

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.