Does THE CATO CORPORATION have an economic moat?

Based on its FY2026 SEC filings, the Moat Index scores THE CATO CORPORATION (CATO) 31.5 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 48, returns on capital 12, balance-sheet safety 28, capital discipline 40.

Is CATO stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $0.02 per share versus a recent price of $3.21 — 18615% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has CATO's Moat Score changed over time?

The record logs 2 readings since Jul 17, 2026; the latest reads 31.5 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

THE CATO CORPORATION

CATO · Consumer Discretionary · $60.3M mkt cap · FY2026 filings · No moat ·

Doesn't clear the bar

No moat

The four filters

Pricing power48

Median gross margin 34.0% over 10y, stable.

Returns on capital12

Median ROIC -1.1%, above the 9% hurdle in 33% of years.

Balance-sheet safety28

Net debt/EBITDA n/ax, interest coverage -110x.

Capital discipline40

Owner earnings -42.7%/yr, share count shrinking (buybacks).

Margin of safety

Above valueOn sale

18615% above value

Owner earnings (normalized): $29000
Est. intrinsic value / share: $0.02
Recent price: $3.21
Discount to value: 18615% above value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

Fundamentals

There's no normalized fundamentals series for CATO yet — it appears once ingest has processed its filings.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale31.5 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — CATO has read No moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Consumer Discretionary context

#262 of 340 scored Consumer Discretionary companies, ranked by Moat Score.

Nearest peers by Moat Score

#260NORD NORDICUS PARTNERS CORPORATION31.6 out of 100, No moatNo moat
#261ISPC iSpecimen Inc.31.6 out of 100, No moatNo moat
#263MNTS Momentus Inc.31.3 out of 100, No moatNo moat
#264NEO NEOGENOMICS, INC.30.5 out of 100, No moatNo moat

Compare CATO with its nearest peers →All Consumer Discretionary companies on the Index →

Common questions about CATO

Does THE CATO CORPORATION have an economic moat?: Based on its FY2026 SEC filings, the Moat Index scores THE CATO CORPORATION (CATO) 31.5 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 48, returns on capital 12, balance-sheet safety 28, capital discipline 40.
Is CATO stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $0.02 per share versus a recent price of $3.21 — 18615% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has CATO's Moat Score changed over time?: The record logs 2 readings since Jul 17, 2026; the latest reads 31.5 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell CATO. See the disclaimer.