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Casey's General (CASY)
NASDAQ:CASY
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Casey's General
(NASDAQ:CASY)68Neutral
Positive Factors
Earnings Performance
CASY delivered a strong FQ2 on impressive inside results, with momentum carrying into FQ3.
Strategic Initiatives
The Fikes acquisition is expected to add to Casey's EBITDA growth, suggesting a potential increase in growth estimates.
Negative Factors
Valuation Concerns
Valuation remains a consistent pushback on CASY as deal-related costs are modeled in.
Casey's General (CASY) vs. S&P 500 (SPY)
Market Cap
$15.14B
Dividend Yield0.47%
Average Volume (3M)282.96K
Price to Earnings (P/E)28.4
Beta (1Y)0.47
Revenue Growth2.60%
EPS Growth11.03%
CountryUS
Employees20,935
SectorConsumer Cyclical
Sector Strength53
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)14.35
Shares Outstanding37,117,554
10 Day Avg. Volume291,318
30 Day Avg. Volume282,959
Financial Highlights & Ratios
PEG Ratio2.58
Price to Book (P/B)N/A
Price to Sales (P/S)1.01
Price to Cash Flow (P/CF)14.00
P/FCF Ratio22.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$445.83Price Target Upside9.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Casey's General Business Overview & Revenue Model
Company DescriptionCasey's General Stores, Inc. (CASY) is a chain of convenience stores in the United States, primarily located in the Midwest. The company operates approximately over 2,000 stores across 16 states, offering a mix of prepared foods, groceries, and fuel. Known for its made-from-scratch pizza, Casey's also provides a range of products, including snacks, beverages, and other convenience items, catering to both local residents and travelers.
How the Company Makes MoneyCasey's General Stores generates revenue through three primary streams: fuel sales, in-store merchandise, and prepared food and beverages. Fuel sales account for a significant portion of the company's revenue, driven by its extensive network of gas stations and competitive pricing strategies. In-store merchandise, which includes groceries, snacks, and beverages, contributes to its profit margin by capitalizing on the convenience factor for customers. Additionally, its prepared food and beverages segment, including popular offerings like pizza and sandwiches, provides higher-margin revenue and differentiates Casey's from other convenience stores. The company also leverages its loyalty program and digital initiatives to drive customer engagement and increase sales.
Casey's General Financial Statement Overview
Summary
Casey's General shows strong revenue and net income growth, with effective cash flow management. However, high leverage and decreased stockholders' equity could pose financial risks.Income Statement
Casey's General has demonstrated strong revenue growth in recent years, with total revenue increasing from $12.95 billion in 2022 to $14.97 billion TTM. Gross profit margins have been robust, reflecting efficient cost management. The net profit margin has improved, indicating rising profitability. However, fluctuations in EBIT margin suggest some operational challenges.82
Very Positive
Balance Sheet
The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which could pose risks. Stockholders' equity has decreased significantly TTM, which affects the equity ratio. However, the return on equity remains strong, suggesting effective use of equity to generate income.68
Positive
Cash Flow
The company exhibits stable operating cash flow, with a positive free cash flow trend. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to earnings. However, variations in free cash flow growth rate highlight potential volatility in cash flow management.77
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 14.97B | 14.86B | 15.09B | 12.95B | 8.71B | 9.18B | Gross Profit |
| 6.30B | 3.00B | 3.07B | 2.76B | 2.36B | 2.14B | EBIT |
| 3.93B | 1.07B | 639.33M | 497.70M | 454.05M | 395.47M | EBITDA |
| 1.13B | 1.07B | 960.29M | 801.29M | 719.41M | 646.64M | Net Income Common Stockholders |
| 535.07M | 501.97M | 446.69M | 339.79M | 312.90M | 263.85M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 206.48M | 206.48M | 378.87M | 158.88M | 336.55M | 78.28M | Total Assets |
| 6.35B | 6.35B | 5.94B | 5.51B | 4.46B | 3.94B | Total Debt |
| 1.75B | 1.75B | 1.67B | 1.69B | 1.36B | 1.40B | Net Debt |
| 1.54B | 1.54B | 1.29B | 1.53B | 1.03B | 1.33B | Total Liabilities |
| 3.33B | 3.33B | 3.28B | 3.26B | 2.53B | 2.30B | Stockholders Equity |
| 3.02B | 3.02B | 2.66B | 2.24B | 1.93B | 1.64B |
| Cash Flow | Free Cash Flow | ||||
| 405.95M | 370.95M | 405.38M | 462.27M | 362.84M | 65.34M | Operating Cash Flow |
| 963.23M | 892.95M | 881.95M | 788.74M | 804.09M | 504.31M | Investing Cash Flow |
| -764.18M | -825.36M | -545.03M | -1.16B | -444.34M | -466.64M | Financing Cash Flow |
| 902.90M | -239.98M | -116.93M | 191.59M | -101.48M | -22.69M |
Casey's General Technical Analysis
Neutral
408.03
Price Trends
410.49
Negative
407.96
Positive
386.56
Positive
Market Momentum
-1.21
Positive
44.18
Neutral
26.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CASY, the sentiment is Neutral. The current price of 408.03 is below the 20-day moving average (MA) of 422.66, below the 50-day MA of 410.49, and above the 200-day MA of 386.56, indicating a neutral trend. The MACD of -1.21 indicates Positive momentum. The RSI at 44.18 is Neutral, neither overbought nor oversold. The STOCH value of 26.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CASY.
Casey's General Risk Analysis
Casey's General disclosed 26 risk factors in its most recent earnings report. Casey's General reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Casey's General Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $460.27B | 60.89 | 30.98% | 0.44% | 5.35% | 16.22% | |
77 Outperform | $762.93B | 39.41 | 22.33% | 0.85% | 5.07% | 25.86% | |
72 Outperform | $14.33B | 38.71 | 28.79% | ― | 12.90% | 50.20% | |
68 Neutral | $15.14B | 28.44 | 72897.68% | 0.47% | 2.60% | 11.03% | |
68 Neutral | $45.51B | 16.64 | 21.45% | 1.99% | 1.41% | 46.58% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
58 Neutral | $9.30B | 19.28 | 59.81% | 0.40% | -5.97% | -5.45% |
* Consumer Cyclical Sector Average
Performance Comparison
CASY
Casey's General
408.03
108.64
36.29%
COST
Costco
1,036.87
267.84
34.83%
KR
Kroger Company
63.18
13.77
27.87%
MUSA
Murphy USA
471.00
61.37
14.98%
WMT
Walmart
94.97
35.12
58.68%
SFM
Sprouts Farmers
145.35
82.01
129.48%
Casey's General Earnings Call Summary
Earnings Call Date: Dec 9, 2024 | % Change Since: -2.29% | Next Earnings Date: Mar 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong financial performance with significant growth in inside sales and successful acquisition integration. However, challenges included a decline in retail fuel sales and fuel margins. Onetime costs from the Fikes acquisition and slight declines in same-store fuel gallons added to the lowlights. Nevertheless, the overall sentiment leans towards positive due to the robust performance in key areas and effective cost management.Highlights
Strong Financial Performance
Diluted earnings per share finished at $4.85, net income was $181 million, and EBITDA was $349 million, all up 14% from the prior year.
Inside Sales Growth
Total inside sales for the quarter were $1.47 billion, an increase of $121 million or 9% from the prior year.
Grocery and General Merchandise Margin Expansion
Same-store grocery and general merchandise sales were up 3.6% with an average margin of 35.6%, an increase of approximately 160 basis points from the prior year.
Successful Acquisition and Integration
The Fikes acquisition was completed, expected to contribute over $200 million of inside sales and approximately 200 million gallons of fuel for the second half of fiscal '25.
Effective Operating Expense Management
Same-store operating expenses increased only by 2%, showcasing effective cost management strategies.
Lowlights
Decline in Retail Fuel Sales
Retail fuel sales were down $232 million in the quarter, driven primarily by a $0.51 decline in the retail price of fuel.
Onetime Costs from Fikes Acquisition
Casey’s expects to incur an additional $15 million to $20 million in onetime deal and integration costs primarily in the third quarter.
Slight Decline in Same-Store Fuel Gallons
Same-store fuel gallons sold were down 0.6%, although outperforming the geographic market.
Fuel Margin Compression
Fuel margin for the quarter was $0.402 per gallon, down $0.21 from the prior year.
Company Guidance
During the Q2 2025 earnings call for Casey's General Stores, several key metrics and guidance updates were provided. The company reported a 14% increase in diluted earnings per share, reaching $4.85, with net income also rising to $181 million, and EBITDA growing to $349 million. Notably, same-store sales inside the store grew by 4%, while fuel margins remained strong at over $0.40 per gallon despite a 0.6% decline in same-store gallons sold. Operating expenses increased by only 2.3% on a same-store basis, excluding credit card fees, demonstrating effective cost management. For the fiscal year, Casey's updated its guidance to reflect anticipated impacts from the Fikes acquisition, projecting at least a 10% increase in EBITDA, with total operating expenses expected to rise between 11% to 13%. The company also plans to add approximately 270 stores during the fiscal year, maintaining same-store inside sales growth expectations between 3% to 5%.Casey's General Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Casey’s General Reports Strong Q2, Expands with CEFCO Acquisition
Positive
Dec 9, 2024
Casey’s General Stores reported impressive second-quarter financial results with a 14% rise in diluted EPS and net income, driven by strong inside sales growth, particularly in prepared food and beverages. Despite a slight dip in same-store fuel gallons, total fuel gross profit increased, aided by robust margins. The company’s strategic focus on efficiency led to reduced labor hours, and the acquisition of 198 CEFCO Convenience Stores from Fikes Wholesale promises to bolster its market presence.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.