Caseys General Stores Inc
NASDAQ:CASY
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Intrinsic Value
The intrinsic value of one CASY stock under the Base Case scenario is 265.15 USD. Compared to the current market price of 427.88 USD, Caseys General Stores Inc is Overvalued by 38%.
The Intrinsic Value is calculated as the average of DCF and Relative values:
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Caseys General Stores Inc
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Fundamental Analysis
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Casey’s General Stores Inc. is a prominent player in the convenience retail industry, primarily operating in the Midwest and down into parts of the Southern United States. Founded in 1959 in Boone, Iowa, the company has grown from a single store to over 2,400 locations, serving millions of customers each year. Known for its signature brand of pizzas and other fresh food offerings, Casey’s distinguishes itself from traditional convenience stores by emphasizing quality food options alongside essential grocery items, fuel, and household essentials. This unique approach has positioned Casey’s as a community cornerstone, attracting both local residents and travelers alike, which boosts its consis...
Casey’s General Stores Inc. is a prominent player in the convenience retail industry, primarily operating in the Midwest and down into parts of the Southern United States. Founded in 1959 in Boone, Iowa, the company has grown from a single store to over 2,400 locations, serving millions of customers each year. Known for its signature brand of pizzas and other fresh food offerings, Casey’s distinguishes itself from traditional convenience stores by emphasizing quality food options alongside essential grocery items, fuel, and household essentials. This unique approach has positioned Casey’s as a community cornerstone, attracting both local residents and travelers alike, which boosts its consistent revenue streams.
Investors looking at Casey's will find a company that has demonstrated impressive resilience and growth potential. The firm's revenue growth has been driven not only by expanding its footprint but also by enhancing its digital offerings, including a user-friendly mobile app that fosters customer engagement and loyalty. Casey’s has also pursued strategic acquisitions to fuel its growth further, positioning it well against competitors in the fast-evolving retail landscape. With a strong balance sheet and effective management practices, Casey’s General Stores stands as a compelling investment opportunity, offering a blend of traditional retail performance with innovative approaches to meet changing consumer preferences.
Casey’s General Stores Inc. operates primarily in the convenience store and grocery sectors, with a business model centered around meeting the needs of local communities. As of the latest information, the core business segments of Casey’s can be categorized as follows:
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Retail Convenience Stores:
- Fuel Sales: A significant portion of Casey’s revenue comes from gasoline sales, with many locations equipped with fuel pumps. The company often offers fuel rewards programs to attract and retain customers.
- Grocery and Convenience Products: Stores provide a wide range of products including snacks, beverages, grocery items, health and beauty products, and household essentials.
- Prepared Foods: Casey’s is well-known for its pizza and other prepared food offerings. They often focus on fresh, made-to-order food which appeals to both in-store customers and those on the go.
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Food Services:
- Pizza and Bakery: Their pizza delivery and carryout services are a key differentiator. Casey’s offers an extensive menu that includes not only pizza but also breakfast items, sandwiches, and bakery goods, catering to local tastes and preferences.
- Catering Services: Some locations may offer catering for events, enhancing their food service segment.
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Real Estate Operations:
- Casey’s owns the real estate on which many of its stores are built, which allows for diversification of revenue through rental income from leased properties, as well as appreciation in property values.
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E-commerce and Digital Engagement:
- Casey’s has invested in its digital platforms, offering online ordering, a mobile app, and loyalty programs. These initiatives are aimed at enhancing customer engagement and improving the shopping experience.
Overall, Casey’s General Stores aims to serve as a one-stop shop for convenience and fuel, with a strong emphasis on community involvement and customer service. The company's strategic focus on food offerings, particularly pizza, distinguishes it from other convenience store operators.
Casey’s General Stores Inc. possesses several unique competitive advantages that differentiate it from its rivals in the convenience store and gas station markets:
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Strong Brand Identity: Casey's has cultivated a strong brand presence, particularly in the Midwestern U.S., where it is often viewed as a community-centric business. This local connection helps foster customer loyalty.
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High-Quality Food Offerings: Unlike many convenience stores that primarily focus on snacks and drinks, Casey's is known for its pizza and made-to-order food items. This differentiates it from competitors and attracts a broader customer base looking for quality meal options.
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Strategic Location Selection: Casey’s has a well-thought-out strategy for site selection, often placing stores in small towns and rural areas where larger competitors may not have a presence. This allows them to capture market share in underserved locations.
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Robust Supply Chain Management: The company has developed effective supply chain and distribution networks, ensuring consistent quality and availability of products, particularly their food offerings.
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Strong Real Estate Holdings: Many Casey's locations are owned real estate, which provides them with a stable asset base and reduces rental expenses compared to competitors that rely heavily on leasing.
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Community Engagement: Casey’s engages actively with local communities through sponsorships, events, and charitable efforts, enhancing its reputation and customer loyalty.
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Technology Integration: The company has been investing in technology to improve operational efficiency, customer experience (e.g., loyalty programs and mobile ordering), and inventory management compared to its competitors who may lag in digital transformation.
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Diverse Revenue Streams: Casey’s generates revenue not only from fuel sales but also from food service and other merchandise, providing a buffer against fluctuations in fuel prices.
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Focus on Sustainability: Casey’s has initiatives aimed at sustainability, which can resonate well with environmentally conscious consumers, potentially driving more traffic to their locations.
These competitive advantages position Casey’s General Stores well against rivals, allowing it to leverage its strengths in the marketplace effectively.
Casey’s General Stores Inc., like many businesses in the retail and convenience store sector, faces several risks and challenges in the near future. Here are some key factors to consider:
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Economic Conditions: Fluctuations in the economy, including inflation rates, unemployment levels, and consumer spending, could impact sales. A downturn might lead to reduced discretionary spending, which can adversely affect revenues.
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Competition: The convenience store industry is highly competitive, with numerous players, including traditional gas stations, supermarkets, and online delivery services. Competing effectively on price, convenience, and quality is essential.
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Supply Chain Disruptions: Ongoing supply chain issues, exacerbated by global events (like the COVID-19 pandemic), can impact the availability of goods. This can lead to stock-outs or increased costs, affecting profitability.
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Labor Shortages: The retail sector is currently facing significant labor challenges, including hiring and retaining qualified employees. High turnover rates can drive up training costs and impact customer service quality.
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Regulatory Changes: Changes in laws and regulations related to labor, health and safety, environmental regulations, and sourcing practices can impose additional operational costs or limit business operations.
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Fuel Price Volatility: As a key player in the fuel retailing sector, Casey’s is exposed to fluctuations in oil prices. Volatile fuel prices can impact consumer purchasing behavior and margins.
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Technological Changes: The need to adapt to new technologies, including payment processing systems, inventory management, and e-commerce platforms, can be a capital-intensive challenge and a source of competitive advantage for others who adapt more swiftly.
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Changing Consumer Preferences: The ongoing shift towards healthier eating and convenience might require Casey’s to adjust its product offerings. Failure to keep pace with changing consumer trends could result in lost sales.
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Cybersecurity Risks: As digital transactions and online services grow, so do the risks of data breaches and cyber-attacks. Protecting sensitive customer data is crucial to maintaining trust.
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Environmental and Social Responsibility: Growing consumer concerns about environmental sustainability and social responsibility may require Casey’s to adapt its business practices, potentially involving increases in costs or changes in marketing strategies.
By proactively addressing these risks and challenges, Casey's General Stores can position itself for continued success in the competitive retail landscape.
Revenue & Expenses Breakdown
Caseys General Stores Inc
Balance Sheet Decomposition
Caseys General Stores Inc
Current Assets | 955m |
Cash & Short-Term Investments | 305m |
Receivables | 164.9m |
Other Current Assets | 485.1m |
Non-Current Assets | 5.5B |
PP&E | 4.7B |
Intangibles | 652.8m |
Other Non-Current Assets | 193.3m |
Current Liabilities | 1.1B |
Accounts Payable | 597.1m |
Accrued Liabilities | 294.2m |
Other Current Liabilities | 240.8m |
Non-Current Liabilities | 2.2B |
Long-Term Debt | 1.4B |
Other Non-Current Liabilities | 802.7m |
Earnings Waterfall
Caseys General Stores Inc
Revenue
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15.1B
USD
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Cost of Revenue
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-11.7B
USD
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Gross Profit
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3.4B
USD
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Operating Expenses
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-2.7B
USD
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Operating Income
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727m
USD
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Other Expenses
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-214m
USD
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Net Income
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512.9m
USD
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Free Cash Flow Analysis
Caseys General Stores Inc
USD | |
Free Cash Flow | USD |
Casey’s achieved a 7% increase in diluted EPS to $4.83, driven by a 6% rise in net income to $180 million and a 9% rise in EBITDA to $346 million. Revenue grew by 5.9% to $4.1 billion, with inside sales up by 7.6%. The Grocery and General Merchandise segments saw sales increase by 7.2%, while Prepared Food and Dispensed Beverage sales grew by 8.7%. Fuel margins remained robust at $0.407 per gallon. Regarding future growth, the company expects to increase its store base by 270 units this fiscal year following the $1.145 billion acquisition of Fikes, which includes 198 convenience stores.
What is Earnings Call?
CASY Profitability Score
Profitability Due Diligence
Caseys General Stores Inc's profitability score is 53/100. The higher the profitability score, the more profitable the company is.
Score
Caseys General Stores Inc's profitability score is 53/100. The higher the profitability score, the more profitable the company is.
CASY Solvency Score
Solvency Due Diligence
Caseys General Stores Inc's solvency score is 61/100. The higher the solvency score, the more solvent the company is.
Score
Caseys General Stores Inc's solvency score is 61/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
CASY Price Targets Summary
Caseys General Stores Inc
According to Wall Street analysts, the average 1-year price target for CASY is 424.73 USD with a low forecast of 341.38 USD and a high forecast of 493.5 USD.
Dividends
Current shareholder yield for CASY is .
Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?
Ownership
CASY Insider Trading
Buy and sell transactions by insiders
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Profile
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Dividend Yield
Description
Casey's General Stores, Inc. engages in the management and operation of convenience stores and gasoline stations. The company is headquartered in Ankeny, Iowa and currently employs 17,960 full-time employees. Its convenience stores carry a range of food including freshly prepared foods such as pizza, donuts, and sandwiches, beverages, tobacco and nicotine products, health and beauty aids, automotive products, and other nonfood items. In addition, all but three offer fuel for sale on a self-service basis. The firm also operates two stores selling primarily tobacco products, one grocery store, and one liquor store. Its store the GoodStop offers fuel for sale on a self-serve basis, and a broad selection of snacks, drinks, tobacco products, and other essentials. The firm operates approximately 2,431 stores. The company operates three distribution centers, through which the Company supply grocery, general merchandise and prepared food and dispensed beverage items to its stores.
Officers
The intrinsic value of one CASY stock under the Base Case scenario is 265.15 USD.
Compared to the current market price of 427.88 USD, Caseys General Stores Inc is Overvalued by 38%.