Is CATO CORP (CATO) Halal?
Shariah Screening — 5 Standards
Based on financial data from January 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 241.4% / 30% | 128.6% / 30% | 40.6% / 30% | 0.77% / 5% | ✗ NOT HALAL |
| DJIM | 241.4% / 33% | 128.6% / 33% | 40.6% / 33% | 0.77% / 5% | ✗ NOT HALAL |
| MSCI | 32.3% / 33% | 17.2% / 33% | 5.4% / 33% | 0.77% / 5% | ✓ HALAL |
| S&P | 241.4% / 33% | 128.6% / 33% | 40.6% / 33% | 0.77% / 5% | ✗ NOT HALAL |
| FTSE | 32.3% / 33% | 17.2% / 33% | 5.4% / 50% | 0.77% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 34.0% | |
| Operating Margin | -9.1% | |
| Net Margin | -0.9% | |
| Return on Equity (ROE) | -3.7% | |
| Return on Assets (ROA) | -2.0% |
Cash Flow & Balance Sheet
| Operating Cash Flow | -$20M |
| Free Cash Flow | -$28M |
| Total Debt | $146M |
| Debt-to-Equity | 95.6 |
| Current Ratio | 1.2 |
| Total Assets | $452M |
Price & Trading
| Last Close | $2.66 |
| 50-Day MA | $3.06 |
| 200-Day MA | $3.40 |
| Avg Volume | 59K |
| Beta | 0.6 |
|
52-Week Range
$2.19
| |
About CATO CORP (CATO)
The Cato Corporation, together with its subsidiaries, operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. It operates through two segments, Retail and Credit. The company's stores and e-commerce websites offer a range of apparel and accessories, including dressy, career, and casual sportswear; and dresses, coats, shoes, lingerie, costume jewelry, and handbags, as well as men's wear, and lines for kids and infants. It operates its stores and e-commerce websites under the Cato, Cato Fashions, Cato Plus, It's Fashion, It's Fashion Metro, and Versona names. It also provides credit card services and layaway plans for customers. The Cato Corporation was incorporated in 1946 and is headquartered in Charlotte, North Carolina.
Related Halal Stocks in Consumer Cyclical
Frequently Asked Questions
Is CATO CORP (CATO) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), CATO CORP is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is CATO CORP's debt ratio?
CATO CORP's debt ratio is 241.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 32.3%.
What are CATO CORP's key financial metrics?
CATO CORP has a market capitalization of $54M, and revenue of $650M. The company maintains a gross margin of 34.0% and a net margin of -0.9%. Return on equity stands at -3.7%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.