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Category: Stock Market and Casey's (CASY)
Date: 8 December 2020 Stock Price of Casey: $181.88 We take a look at the 2nd quarter earnings release of their 2021 fiscal year of Casey's General Stores on of the biggest general store groups in the USA, with their 2nd quarter 2021 revenues topping $2.21 billion, down just over -10.9% and net earnings for the quarter coming in at $111.9 million.
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- Casey’s had a remarkable second quarter and is well on our way to executing our long-term strategic plan - President and CEO Darren Rebelez "
About Casey's General Stores
Headquartered in Ankeny, Iowa, Casey's General Stores, Inc. operates more than 2,000 convenience stores in 16 Midwestern states. Casey's offers self-service gasoline, a wide selection of grocery items and an array of freshly prepared food items. Among the most popular of Casey's prepared foods are their made-from-scratch pizzas, donuts, subs and sandwiches. Casey's operates from two company distribution centers, enabling an approximate delivery of 90% of in-store products as well as 75% of fuel.
The first store opened in 1968 in Boone, Iowa. In the years following, Casey's found success by opening stores in other small towns across Iowa. Approximately 57% of Casey's stores are still found in areas with populations of 5,000 or less. In contrast, roughly 17% of Casey's are now located in areas with populations of 20,000 or more. Casey's has a strong balance sheet and owns nearly all of its assets, which allows the company to consistently take advantage of growth opportunities.
The first store opened in 1968 in Boone, Iowa. In the years following, Casey's found success by opening stores in other small towns across Iowa. Approximately 57% of Casey's stores are still found in areas with populations of 5,000 or less. In contrast, roughly 17% of Casey's are now located in areas with populations of 20,000 or more. Casey's has a strong balance sheet and owns nearly all of its assets, which allows the company to consistently take advantage of growth opportunities.
Overview of Casey's General Stores 2nd quarter 2021 earnings report
The data below refers to the latest quarter unless specified otherwise:
- Total Revenue: $2.105 billion (down from $2.626 billion for the same quarter of the previous year)
- Total revenues decreased by -19.8% over the last 12 months
- Cost of goods sold: $1.481 billion (down from $2.060 billion for the same quarter of the previous year)
- Cost of goods sold decreased by -28.1% over the last 12 months
- Net income: $120.592 million (up from $85.815 million for the same quarter of the previous year)
- Diluted income per share: $3.24 (up from $2.31 for the same quarter of the previous year)
- PE ratio of Casey's: 13.7
- Dividend declared for quarter: $0.32
- Dividend yield of Casey's: 0.72%
- Diluted number of shares outstanding: 37.242 million (up from 37.085 million for the same quarter of the previous year)
- Cash and cash equivalents: $246.516 million
- Cash and cash equivalents per share: $6.62
- Cash and cash equivalents makes up 6% of Casey's total assets
- Cash and cash equivalents makes up 3.74% of Casey's current market capital
- Receivables: $55.647 million
- Trade receivables makes up 1.35% of Casey's total assets
- Inventories: $238.8 million
- Inventories makes up 5.82% of Casey's total assets
- Stockholders equity in Casey's General Stores: $1.751 billion
- Stockholders equity per share: $47.02
- Casey's General Stores are trading at 3.76 times its stockholders equity per share which is within the expected range of between 2 and 4 times that most firms tend to trade at
- For perspective the average price to book value of firms in the S&P 500 is 3.7. Read more about the S&P 500 here
Casey's General Stores' management commentary on their 2nd quarter 2021 earnings report
ANKENY, Iowa--(BUSINESS WIRE)-- Casey’s General Stores, Inc. ("Casey's" or the "Company") (Nasdaq symbol CASY) one of the leading convenience store chains in the United States, today announced financial results for the three and six months ended October 31, 2020.
Second Quarter Key Highlights
Second Quarter Key Highlights
- Diluted earnings per share of $3.00 compared to $2.21 for the same period a year ago, an increase of 36%.
- Fuel gross profit increased 45% with a fuel margin of 35.3 cents per gallon. Same-store gallons sold decreased 8.6% compared to prior year but improved sequentially from first quarter.
- Inside same-store sales increased 3.5% with a margin of 41.0%, inside gross profit increased 2.8%.
- Digital sales increased 127% compared to prior year. Casey’s Rewards recently exceeded 3 million members.
- The Board of Directors increased the dividend to $0.34 per share, an increase of 6%.
- Buchanan Energy acquisition expected to close in December.
Casey’s is on track to close on the previously disclosed 94-store Bucky’s acquisition by the end of the calendar year. The acquisition is a strong strategic fit and is expected to be accretive to earnings in fiscal 2022. In addition, the Company expects to complete the construction of approximately 40 new stores this fiscal year.
Liquidity
At October 31, the Company had approximately $730 million in available liquidity, consisting of approximately $405 million in cash and cash equivalents on hand and $325 million in borrowing capacity on existing lines of credit. The Company intends to finance the Bucky’s acquisition with existing cash on hand, a new bank term loan with a 5-year maturity, and a temporary draw on its line of credit.
Share Repurchase
The Company has $300 million remaining under its existing share repurchase program. There were no repurchases made against that authorization in the second quarter.
Dividend
At its December meeting, the Board of Directors voted to increase the quarterly dividend 6% to $0.34 per share. The dividend is payable February 15, 2021 to shareholders of record on February 1, 2021.
Liquidity
At October 31, the Company had approximately $730 million in available liquidity, consisting of approximately $405 million in cash and cash equivalents on hand and $325 million in borrowing capacity on existing lines of credit. The Company intends to finance the Bucky’s acquisition with existing cash on hand, a new bank term loan with a 5-year maturity, and a temporary draw on its line of credit.
Share Repurchase
The Company has $300 million remaining under its existing share repurchase program. There were no repurchases made against that authorization in the second quarter.
Dividend
At its December meeting, the Board of Directors voted to increase the quarterly dividend 6% to $0.34 per share. The dividend is payable February 15, 2021 to shareholders of record on February 1, 2021.
Casey's General Stores (NASDAQ: CASY) stock price history
The image below shows the stock price history of Casey's over the last 5 years. And its been a very good time for the group. With stockholders being handsomely rewarded during the last 5 years. 5 years ago the stock was trading at around $125.30 and its currently trading at $181.88. Thats a very handsome 45.1% return over the last 5 years.
Casey's is trading at a lot closer to its 52 week high of $183.45 than it is to its 52 week low of $114.01 which to us is indication that the sentiment and momentum of Casey's stock is very positive.
Casey's is trading at a lot closer to its 52 week high of $183.45 than it is to its 52 week low of $114.01 which to us is indication that the sentiment and momentum of Casey's stock is very positive.
Casey's General Stores (CASY) vs Kroger Company (KR) vs Dollar General (DG) over last 5 years
The image below shows the stock price performance of Casey's General Stores (CASY) vs Kroger Company (KR) vs Dollar General (DG) over the last 5 years. While all three stores are active in the general retail sector in the United States, the stock price trends and returns provided of these stocks are very different over the last 5 years. Below the summary of the three stocks stock returns over the last 5 years:
The stock of Dollar General has easily outperformed that of Kroger and Casey's over the last 5 years. Kroger has been the worst performer of the three stocks over the last 5 years.
- Dollar General (DG): 192.63%
- Casey's General Stores (CASY): 45.7%
- Kroger Company (KR): -24.1%
The stock of Dollar General has easily outperformed that of Kroger and Casey's over the last 5 years. Kroger has been the worst performer of the three stocks over the last 5 years.
Recent coverage of Casey's General Stores (CASY)
The extract below covers the latest earnings from Casey's as obtained from Nasdaq.com
Investors are always looking for stocks that are poised to beat at earnings season and Casey's General Stores, Inc. CASY may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Casey's is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for CASY in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $2.63 per share for CASY, compared to a broader Zacks Consensus Estimate of $2.67 per share. This suggests that analysts have very recently bumped up their estimates for CASY, giving the stock a Zacks Earnings ESP of +1.49% heading into earnings season.
Read the full article here
Investors are always looking for stocks that are poised to beat at earnings season and Casey's General Stores, Inc. CASY may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Casey's is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for CASY in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $2.63 per share for CASY, compared to a broader Zacks Consensus Estimate of $2.67 per share. This suggests that analysts have very recently bumped up their estimates for CASY, giving the stock a Zacks Earnings ESP of +1.49% heading into earnings season.
Read the full article here
Casey's General Stores (NASDAQ: CASY) latest stock valuation
So based on Casey's 2nd quarter 2021 earnings report what are Casey's General Stores stock worth? Based on the earnings report and fiscal guidance provided by Casey's General Stores our valuation models has a target price (full value price) on Casey's General Stores of $208.10 a stock (up from our 1st quarter 2021 earnings report valuation of Casey's)
We therefore believe the stock of Casey's General Stores is slightly undervalued at its current price of $181.88. We suggest looking to buy into Casey's General Stores of at least 10% below our target price. So a suggested entry price is closer to $187.30 a stock.
We expect the stock price of Casey's General Stores to kick up from current levels to levels closer to our target price in coming weeks and months.
Since the stock of Casey's (CASY) is trading at below our suggested entry point we rate the stock as a buy
We therefore believe the stock of Casey's General Stores is slightly undervalued at its current price of $181.88. We suggest looking to buy into Casey's General Stores of at least 10% below our target price. So a suggested entry price is closer to $187.30 a stock.
We expect the stock price of Casey's General Stores to kick up from current levels to levels closer to our target price in coming weeks and months.
Since the stock of Casey's (CASY) is trading at below our suggested entry point we rate the stock as a buy
Next earnings release of Casey's General Stores (CASY)
It is expected that Casey's will release their 3rd quarter 2021 earnings report in early March 2021