Professional Documents
Culture Documents
S&P Capital IQ Risk Evaluation: MODERATE Price: 29.24 (May 11, 2016 close) Trading Currency: USD Country: United States
GICS Sector: Financials
S&P Capital IQ Sector Ranking: MarketWeight
S&P Capital IQ Quality Ranking: B+
GICS Industry: Regional Banks
Business Summary: Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services for
individuals, professionals, and small to medium-sized businesses in the United States.
[as of May 10, 2016]
S&P Capital IQ
Quantitative Model Drivers
Price Performance
Positive
Quality
Positive
Growth
Positive
Street
Sentiment
Price
Momentum
Neutral
MODERATE
Low
Relative Strength vs
Index
As Reported Earnings vs
Previous Year
Up
Volume
Moderate
Moderate
Liquidity Risk
Moderate
Below Avg.
Above Avg.
Down
No Change
Total Return[%CAGR]
YTD
1Yr
3Yr
5Yr
NasdaqGS:CATY
-5.9
4.1
15.1
13.3
Peer Average
-3.2
4.9
16.4
16.1
1.8
0.2
10.4
11.4
S&P 500
Key Statistics
Dividend Data
Currency: USD
2,332
25.62 - 34.75
19,418
1.36
78.8
0.489
Insider Ownership(%)
5Yr Low
Indicated Rate/
Share
Yield [%]
Payout Ratio
[%]
5Yr Hi
0.72
2.5
23.8
0.2
3.1
2.8
32.3
1Yr
3Yr
5Yr
Current
Company
11.1
5.4
11.3
NasdaqGS:CATY
13.9
8.1
12.8
14.2
Peer Average
14.9
-2.3
1.2
3.4
S&P 500
17.2
Ex Div Date
Record Date
Payment Date
0.180
Feb 26
Mar 1
0.180
Nov 30
Dec 2
0.140
Aug 28
Sep 1
0.140
May 29
Jun 2
Revenue - %CAGR
S&P 500
Amount
[USD]
5.97
Peer Average
Payment Details
5-Year Average
18.5
18.4
30.9
NasdaqGS:CATY
Peer Average
9.4
13.4
22.0
Peer Average
S&P 500
1.8
3.1
3.7
S&P 500
13.9
15
15.0
This document is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the
particular needs of any specific person who may receive this report. Refer to important disclosures at the end of this report.
S&P Capital IQ Risk Evaluation: MODERATE Price: 29.24 (May 11, 2016 close) Trading Currency: USD Country: United States
Earnings Per Share and Revenues (Millions USD, except per share)
Fiscal year ends Dec 31. Next earnings report expected: Late Jul.
EPS Quarterly - Actual & Estimated
%Yr.Yr Chg.
% EPS
Surprise
No. of
Analysts
%Yr.Yr Chg.
Forward
P/E
No. of
Analysts
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16E
27.3
4.4
15.9
26.7
-22.1
13.8
0.4
-1.2
9.6
% Net Interest
Margin
3.21
3.28
3.33
3.35
3.39
3.42
Peer Average
4.17
4.22
4.07
4.05
3.87
3.91
% Efficiency
Ratio
50.9
52.4
50.4
45.5
49.2
46.9
Peer Average
53.6
54.3
53.9
51.0
49.9
51.1
% Return on
Equity
6.9
7.7
8.0
9.0
9.6
10.2
2013
2014
2015
2016E
2017E
11.7
20.3
15.1
6.8
7.7
Peer Average
7.3
9.1
10.2
11.0
10.6
10.6
13.9
12.9
% Return on
Assets
0.94
1.11
1.14
1.22
1.30
1.36
Peer Average
0.83
1.01
1.19
1.29
1.25
1.26
# LTM column for Net Interest Margin and Efficiency Ratio show latest
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16E
6.1
11.6
13.6
54.0
10.0
2013
2014
2015
2016E
2017E
4.7
-0.4
7.6
9.3
8.4
30.5
14.1
17.1
16.0
17.5
8.2
11.1
12.3
13.5
12.9
Peer Average
Note: EPS & Revenues in graphs above may represent analyst-adjusted actuals and estimates and therefore may not match numbers in the
financial data presentation below.
15.8
13.6
15.1
15.9
16.2
14.9
Prc/Tang Book
- High
1.7
1.5
2.0
1.9
2.1
1.7
Prc/Tang Book
- Low
0.9
1.2
1.3
1.5
1.5
Peer Average
1.6
1.7
2.2
2.4
2.5
2.0
Avg
Prc/Revenue
5.3
3.8
4.5
5.2
6.0
5.4
Peer Average
3.8
3.9
4.6
5.7
5.9
4.8
Income Statement and Balance Sheet Data (Millions USD, except per share)
2009
2010
2011
13.9
2013
2014
2015
LTM#
283
298
314
321
325
343
380
394
78.7
32.3
50.9
46.5
60.3
40.5
32.7
31.7
Net Revenue
361
330
365
368
385
383
412
426
307.0
156.9
27.0
-9.0
-3.0
-10.8
-11.4
-16.9
-67
12
100
117
123
138
161
171
78%
90%
86%
87%
84%
89%
92%
93%
22%
10%
14%
13%
16%
11%
8%
7%
-1.59
-0.06
1.06
1.28
1.43
1.72
1.98
2.10
0.11
0.04
0.04
0.04
0.12
0.34
0.64
0.50
NM
NM
4%
3%
8%
20%
32%
24%
Total Loans
6,899
6,869
7,059
7,429
8,085
8,914
10,163
10,364
Total Assets
13,262
11,588
10,802
10,645
10,694
10,989
11,517
13,254
3.51%
3.04%
2.83%
1.41%
1.25%
0.89%
0.62%
0.54%
Total Deposits
7,505
6,992
7,229
7,383
7,981
8,783
10,509
10,324
Common Equity
1,060
1,180
1,256
1,366
1,459
1,603
1,748
1,735
Note: Data may be restated; before results of discontinued operations/special items. Per share data adjusted for stock dividends as of ex-dividend date.
NA = Not Available. NM = Not Meaningful.
STRONG BUY
S&P Capital IQ Risk Evaluation: MODERATE Price: 29.24 (May 11, 2016 close) Trading Currency: USD Country: United States
P/B
Ratio
S&P Capital IQ
Ranking 1
Stock Symbol
Cathay General
Bancorp
NasdaqGS:CATY
2,332
29.24
25.62/34.75
1.36
2.5
13.9
1.7
Strong Buy
38.7
10.2
NA
1,217
15.05
13.59/19.63
1.66
2.9
11.5
1.4
Buy
30.1
10.2
NA
1,798
16.47
14.02/18.77
1.53
2.9
16.6
2.0
Sell
36.3
11.4
NA
5,277
36.37
27.25/46.50
1.59
2.2
12.7
1.9
35.9
12.7
NA
First Midwest
Bancorp Inc.
NasdaqGS:FMBI
1,463
17.78
14.56/19.81
1.55
2.0
14.4
1.7
Sell
18.4
6.8
NA
Glacier Bancorp,
Inc.
NasdaqGS:GBCI
1,943
25.36
21.90/30.29
1.61
4.3
14.9
2.1
Hold
29.6
10.9
NA
Home Bancshares,
NasdaqGS:HOMB
Inc. (Conway, AR)
2,953
41.80
33.04/47.50
0.96
1.7
17.1
3.5
Hold
35.5
13.1
NA
International
Bancshares
Corporation
NasdaqGS:IBOC
1,721
26.03
21.05/31.00
1.76
2.2
NA
1.2
Sell
28.0
8.1
NA
South State
Corporation
NasdaqGS:SSB
1,689
68.64
59.18/81.80
1.14
1.7
15.3
2.4
Hold
22.7
9.6
NA
United Bankshares
NasdaqGS:UBSI
Inc.
2,657
37.82
32.22/43.43
1.06
3.5
18.7
2.6
Hold
31.5
8.1
NA
Western Alliance
Bancorporation
3,579
34.40
26.60/39.11
1.72
Nil
12.9
2.6
Buy
38.0
16.3
NA
NYSE:WAL
Beta
Dividend
Yield[%] Fwrd P/E
Peer Group
1 Quantitative Rankings : Strong Buy , Buy , Hold , Sell , Strong Sell ; Qualitative Rankings(STARS) : ***** = Strong Buy , **** = Buy , *** = Hold , ** = Sell , * = Strong Sell
S&P Capital IQ Rankings are not predictive of future performance. For full definitions of S&P Capital IQ Rankings, see the glossary section of this report.
Note: Peer Group selection is performed using S&P Capital IQ's proprietary peer ranking system. Peers are selected based on factors such as similarity of analyst coverage, industry, size, and region. The subject company is
ranked against a universe of companies ( the "S&P Capital IQ Universe") which has been compiled by S&P Capital IQ and consists of a list of companies with similar characteristics, but may not include all the companies
within the same industry and/or that engage in the same line of business. The subject company and some of the companies in the Peer Group may be ranked by two different ranking systems. For the purpose of S&P Capital
IQ overall ranking/recommendation, the subject company is ranked against all the companies in the S&P Capital IQ Universe and not necessarily against the companies listed in the Peer Group
STRONG BUY
S&P Capital IQ Risk Evaluation: MODERATE Price: 29.24 (May 11, 2016 close) Trading Currency: USD Country: United States
Business Summary
Corporate Information
Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial
banking products and services for individuals, professionals, and small to medium-sized businesses in the
United States. It offers various deposit products, including passbook accounts, checking accounts, money
market deposit accounts, certificates of deposit, individual retirement accounts, college certificates of
deposit, and public funds deposits. The companys loan portfolio consists of 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 automobile, household,
and other consumer expenditures. In addition, it provides letters of credit, wire transfers, forward currency
spot and forward contracts, travelers checks, safe deposit, night deposit, social security payment deposit,
collection, bank-by-mail, drive-up and walk-up windows, automatic teller machines, Internet banking,
investment, and other customary bank services, as well as securities and insurance products. As of December
31, 2015, the company operated 21 branches in southern California; 12 branches in northern California; 12
branches in New York; 3 branches in Illinois; 3 branches in Washington; 2 branches in Texas; 1 in Maryland; 1
in Massachusetts; 1 in Nevada; 1 in New Jersey; and 1 in Hong Kong, as well as a representative office in
Shanghai and in Taipei. Cathay General Bancorp was founded in 1990 and is headquartered in Los Angeles,
California.
Office
777 North Broadway
Los Angeles , California 90012
United States
Key Developments
May-16-2016 Annual General
Meeting
Apr-20-2016 Earnings Release Date Cathay General Bancorp to Report Q1, 2016 Results on Apr 20, 2016
Apr-20-2016 Earnings Calls
Apr-20-2016 Announcements of
Earnings
Cathay General Bancorp Reports Unaudited Consolidated Earnings Results for the
First Quarter Ended March 31, 2016; Announces Net Charge-Offs for the Quarter
Ended March 31, 2016
Cathay General Bancorp Presents at Keefe, Bruyette & Woods Winter Financial
Services Symposium, Feb-11-2016
Jan-20-2016 Earnings Release Date Cathay General Bancorp to Report Q4, 2015 Results on Jan 20, 2016
Jan-20-2016 Earnings Calls
Jan-20-2016 Announcements of
Earnings
Cathay General Bancorp Reports Unaudited Consolidated Earnings Results for the
Fourth Quarter and Year Ended December 31, 2015; Reports Net Charge-Offs for
the Fourth Quarter Ended December 31, 2015; Provides Tax Rate Guidance for the
Year 2016
Beneficial State Bank signed a definitive agreement to acquire Pan American Bank
(OTCPK:PAMB) for $38.5 million.
Oct-20-2015 Earnings Release Date Cathay General Bancorp to Report Q3, 2015 Results on Oct 20, 2015
Oct-20-2015 Earnings Calls
Oct-20-2015 Announcements of
Earnings
Cathay General Bancorp Reports Unaudited Consolidated Earnings Results for the
Third Quarter and Nine Months Ended September 30, 2015; Reports Net
Charge-Offs for the Third Quarter Ended September 30, 2015; Provides Effective
Tax Rate Guidance for the Fourth Quarter of 2015
Jul-31-2015
M&A Transaction
Closings
Jul-21-2015
Earnings Release Date Cathay General Bancorp to Report Q2, 2015 Results on Jul 21, 2015
Jul-21-2015
Earnings Calls
Jul-21-2015
Announcements of
Earnings
Telephone
213-625-4700
Web Site
www.cathaybank.com
Key Officers
Chairman, Chief Executive Officer, President,
Chairman of Investment Committee, Member of Risk
Committee, Chairman of Cathay Bank, Chief
Executive Officer of Cathay Bank, President of
Cathay Bank, President of Cathay Real Estate
Investment Trust and Trustee of Cathay Real Estate
Investment Trust
D.K.Cheng Ph.D.
Chief Financial Officer, Principal Accounting Officer,
Executive Vice President, Treasurer, Chief Financial
Officer of Cathay Real Estate Investment Trust, Chief
Financial Officer of Cathay Bank, Executive Vice
President of Cathay Bank and Vice President of
Cathay Real Estate Investment
H.W.Chen
President of Cathay Bank and Director of Cathay
Bank
P.Tai
Chief Operating Officer of Cathay Bank and Senior
Executive Vice President of Cathay Bank
I.Wong
Chief Credit Officer of Cathay Bank and Executive
Vice President of Cathay Bank
D.S.Chow
Board Members
K.L.Chan, M.Y.Chang, D.K.Cheng Ph.D., T.C.T.Chiu
M.D., N.Chung, F.S.Fernandez, J.H.Jelenko, P.S.D.Lee,
T.Y.Liu Ph.D., J.C.H.Poon, P.Tai, A.M.Tang, P.Wu Ph.D.
State of Incorporation
Delaware
Founded
1990
Employees
1,122
Glossary
S&P Capital IQ Quantitative Model Overall
Recommendation and drivers of the
recommendation
S&P Capital IQ's global quantitative stock reports
provide a 5-tier recommendation assigning a Strong
Buy, Buy, Hold, Sell, or Strong Sell recommendation
based on a series of quantitative inputs from four
separate regional models:
Glossary
Peer Group
A subset of an universe that groups companies by
specific criteria, such as industry/across industry, lines
of business, geography (local, regional, national, and
international), size of business (e. g. in terms of
revenue), performance criteria, etc.
Universe
A set of companies that shares a common feature
such as the same market capitalization, industry or
index.
Relevant benchmarks:
Beta
Beta is a measurement of the sensitivity of a
company's stock price to the overall fluctuation of a
given benchmark index. The beta values used in this
report are levered, unadjusted and derived from a least
squares regression analysis using stock and
benchmark index returns based on a monthly
frequency. Beta is calculated using 60 monthly returns
(each as of month end) but if the company's trading
history is too short to provide such a sample, fewer
than 60 but not fewer than 24 monthly returns are
used to run the regression. Beta in this report uses five
different benchmark indices to better estimate a
stock's volatility against a respective market: the S&P
500 for all US stocks, the S&P/TSX index for all
Canadian stocks, the S&P Europe 350 for all European
stocks, the S&P/ASX 200 index for all Australian
stocks, and the S&P Global 1200 for all other
international stocks.
Free Cash Flow (FCF)
Operating Cash Flow minus Capital Expenditures over
the past 12 months
Funds from Operations (FFO)
Funds from Operations (FFO) represents a REIT's net
income, excluding gains or losses from sales of
property, plus real estate depreciation.
Not Meaningful (NM)
Value is available but it is not meaningful. Examples are
certain negative ratios such as P/E, as well as certain
ratios that are over +/- 100%
Not Available (NA)
Value is not available for this data item
Return on Capital
EBIT / (Total Equity + Total Debt + Deferred Tax Liability
Non Current + Deferred Tax Liability Current) Notes:
(1) If the denominator is less than or equal to zero then
the ratio will be shown as NM
(2) If the return is less than (300%) then the value will
be shown as NM
Return on Equity
Earnings From Continuing Operations / ((Total
Equity(t) + Total Equity (t-1)) / 2) Notes:
(1) If both periods of data (t and t-1) are not available
then the ratio will be shown as NM
(2) If the denominator is less than or equal to zero then
the ratio will be shown as NM
Region
Country
Index
US
US
Canada
Canada
Europe
All
All except
Asia ex Japan
Australia
EBIT
EBITDA
EPS
EV
Enterprise Value
FCF
FFO
LTD
NM
P/E
Price/Earnings
Disclosures
S&P Capital IQ ranks stocks in accordance with the
following ranking methodologies:
STARS Stock Reports:
S&P Capital IQ''s qualitative STARS recommendations
are determined and assigned by S&P Capital IQ equity
analysts. For reports containing STARS
recommendations refer to the Glossary section of the
report for detailed methodology and the definition of
STARS rankings.
Quantitative Stock Reports:
S&P Capital IQ''s quantitative recommendations are
determined by ranking a universe of common stocks
based on 5 measures or model categories: Valuation,
Quality, Growth, Street Sentiment, and Price
Momentum. In the U.S., a sixth sub-category for
Financial Health will also be displayed. Percentile
scores are used to compare each company to all other
companies in the same universe for each model
category. The five (six) model category scores are then
weighted and rolled up into a single percentile ranking
for that company. For reports containing quantitative
recommendations refer to the Glossary section of the
report for detailed methodology and the definition of
Quantitative rankings.
STARS Stock Reports and Quantitative Stock
Reports:
The methodologies used in STARS Stock Reports and
Quantitative Stock Reports (collectively, the "S&P
Capital IQ''s Research Reports" or "Research Reports")
reflect different criteria, assumptions and analytical
methods and may have differing recommendations.
S&P Capital IQ believes that the methodologies and
data used to generate the different types of Research
Reports are reasonable and appropriate. Generally,
S&P Capital IQ does not generate reports with different
ranking methodologies for the same issuer. However, in
the event that different methodologies or data are
used on the analysis of an issuer, the methodologies
may lead to different views or recommendations on the
issuer, which may at times result in contradicting
assessments of an issuer. S&P Capital IQ reserves the
right to alter, replace or vary models, methodologies or
assumptions from time to time and without notice to
clients.
STARS Stock Reports:
STARS Stock Reports are prepared by the equity
research analysts of Standard & Poor''s Investment
Advisory Services LLC ("SPIAS"), McGraw-Hill Financial
Research Europe Limited ("MHFRE"), and Standard &
Poor''s Malaysia Sdn Bhd ("S&P Malaysia"), each a
division of S&P Capital IQ. All of the views expressed in
STARS Stock Reports accurately reflect the research
analyst''s personal views regarding any and all of the
subject securities or issuers. Analysts generally update
stock reports at least four times each year.
Quantitative Stock Reports:
The rankings for Quantitative reports have a fixed
distribution based on relative weightings as described
in the Glossary section of the report.
Analyst Certification
STARS Stock Reports are prepared by the equity
research analysts of Standard & Poor''s Investment
Advisory Services LLC ("SPIAS"), McGraw-Hill Financial
Research Europe Limited ("MHFRE"), and Standard &
Poor''s Malaysia Sdn Bhd ("S&P Malaysia"), each a
division of S&P Capital IQ. All of the views expressed in
STARS Stock Reports accurately reflect the research
analyst''s personal views regarding any and all of the
subject securities or issuers. Analysts generally update
stock reports at least four times each year. No part of
analyst compensation and SPIAS'', MHFRE''s or S&P
Malaysia''s compensation was, is, or will be, directly or
indirectly, related to the specific recommendations or
views expressed in a STARS Stock Report.
About S&P Capital IQ''s Distributors:
S&P Capital IQ''s Research Reports have been prepared
by Global Markets Intelligence ("GMI"), a business unit
of S&P Capital IQ. In the United States, Research
Reports are prepared and issued by SPIAS. In the
European Economic Area ("EEA") States, Research
Reports are distributed by MHFRE, which is authorized
and regulated by the Financial Conduct Authority in the
United Kingdom. Under and subject to the Markets in
Financial Instruments Directive ("MiFID"), MHFRE is
entitled to exercise a passport right to provide cross
border investment advice into EEA States. MHFRE
exercises its MiFID right to passport investment advice
including the Research Reports into EEA States. In
Hong Kong, Research Reports are issued by Standard
& Poor''s Investment Advisory Services (HK) Limited
("SPIAS HK"), which is regulated by the Hong Kong
Securities Futures Commission; in Singapore, by
McGraw-Hill Financial Singapore Pte. Limited
("MHFSPL"), which is regulated by the Monetary
Authority of Singapore; Research Reports are
distributed in Malaysia, by S&P Malaysia, which is
regulated by the Securities Commission of Malaysia; in
Australia, by Standard & Poor''s Information Services
(Australia) Pty Ltd ("SPIS"), which is regulated by the
Australian Securities & Investments Commission; and
in Japan, by McGraw-Hill Financial Japan KK ("MHF
Japan"), which is registered by Kanto Financial Bureau.
SPIAS, MHFRE, SPIAS HK, MHFSPL, S&P Malaysia, SPIS
and MHF Japan, each a wholly owned subsidiary of
McGraw Hill Financial, Inc. operate under the GMI
brand.
S&P Capital IQ and its affiliates provide a wide range of
services to, or relating to, many organizations,
including issuers of securities, investment advisers,
broker-dealers, investment banks, other financial
institutions and financial intermediaries, and
accordingly may receive fees or other economic
benefits from those organizations, including
organizations whose securities or services they may
recommend, rate, include in model portfolios, evaluate
or otherwise address.
For details on the S&P Capital IQ research objectivity
and conflict-of-interest policies, please visit:
https://www.spcapitaliq.com/disclaimers/
s-p-capital-iq-research-reports
General Disclosure
If a recipient of Research Report does not understand any of the contents of the
Research Report, the recipient should contact a financial advisor. Users of extracts
of investment Research Reports should be aware that if they are distributed in the
UAE by an intermediary, the intermediary is solely responsible for the distribution
and contents of the investment research in the UAE.
For residents of Uruguay: S&P Capital IQ or its affiliates are not, individually a risk
assessment entity registered with the Central Bank of Uruguay, and S&P Capital
IQ''s Research Reports do not constitute a risk assessment. Investment research
presented in a Research Report is not intended to constitute a public or private
offer of securities in Uruguay. S&P Capital IQ''s Research Reports are not intended
for worldwide distribution, as such, and are not published to Uruguayan clients in
Spanish.
For residents of Venezuela: Research Reports can only be distributed in Venezuela
by an investment advisor, duly licensed under Venezuelan law. The Distributor of the
Research Reports, and not S&P Capital IQ, is solely responsible for complying with
licensing requirements.
Copyright 2016 Standard & Poor's Financial Services LLC. All rights reserved. STANDARD & POOR'S, S&P, S&P 500, S&P EUROPE 350 and STARS are registered
trademarks of Standard & Poor's Financial Services LLC. S&P CAPITAL IQ is a trademark of Standard & Poor's Financial Services LLC.