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Category: Stock Market and Casey's
Date: 16 December 2019 Stock Price: $153.81 We take a look at the 2nd quarter earnings release of their 2020 fiscal year of Casey's General Stores on of the biggest general store groups in the USA.
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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 2020 earnings report
The numbers we are interested in (for the quarter):
- Total Revenue: $2.487 billion (down from $2.538 billion for the same quarter of the previous year)
- Total revenues decreased by 2% over the last 12 months
- Cost of goods sold: $1.930 billion (down from $2.027 billion for the same quarter of the previous year)
- Cost of goods sold decreased by -4.7% over the last 12 months
- Net income: $81.981 million (up from $66.615 million for the same quarter of the previous year)
- Diluted income per share: $2.21 (up from $1.80 for the same quarter of the previous year)
- PE ratio of Casey's: 1 (based on the earnings for the 1st 2 quarters of their fiscal year)
- Dividend declared for quarter: $0.29
- Dividend yield of Casey's: 0.75% (if the dividend declared this quarter is paid in each quarter of their fiscal 2020)
- Diluted number of shares outstanding: 37.136 million (up from 37.017 million for the same quarter of the previous year)
- Cash and cash equivalents: $43.976 million
- Cash and cash equivalents per share: $1.18
- Cash and cash equivalents makes up 0.1.13% of Casey's total assets
- Cash and cash equivalents makes up 0.76% of Casey's current market capital
- Receivables: $44.775million
- Trade receivables makes up 1.15% of Casey's total assets
- Inventories: $271.443 million
- Inventories makes up 7.02% of Casey's total assets
- Stockholders equity in Casey's General Stores: $1.561 billion
- Stockholders equity per share: $42.03
- Casey's General Stores are trading at 3.6 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
Casey's General Stores' management commentary on the results and earnings guidance
ANKENY, Iowa--(BUSINESS WIRE)-- Casey’s General Stores, Inc. (“Casey’s” or the “Company”) (Nasdaq symbol CASY) today reported diluted earnings per share of $2.21 for the second quarter of fiscal year 2020 ended October 31, 2019, compared to $1.80 per share for the same quarter a year ago, representing nearly 23% growth compared to last year. "Excluding impacts of tax reform, this represents the sixth consecutive quarter of at least 20% growth in diluted earnings per share, compared to prior year quarters," said Darren Rebelez, President and Chief Executive Officer. Second quarter results were primarily driven by continued strong growth in fuel gross profit dollars, new store openings, and an ongoing focus on operating efficiencies. "We are optimistic about the new initiatives that will launch in the back half of fiscal 2020 and beyond, and believe they will continue to create additional shareholder value," stated Rebelez.
The Company has 12 acquisition stores under agreement to purchase and a new store pipeline of 97 sites, including 31 under construction as of October 31, 2019. "The announcement of our third distribution center in Joplin, Missouri, opens up new territory to expand our business," said Rebelez. "We are looking forward to the immediate efficiencies and opportunity for future expansion this third location will provide."
Share Repurchase Program
The Company has $300 million remaining on its authorization from March 2018. There were no repurchases made against that authorization in the second quarter.
Dividend
At its December meeting, the Board of Directors declared a quarterly dividend of $0.32 per share. The dividend is payable February 17, 2020 to shareholders of record on February 3, 2020.
Share Repurchase Program
The Company has $300 million remaining on its authorization from March 2018. There were no repurchases made against that authorization in the second quarter.
Dividend
At its December meeting, the Board of Directors declared a quarterly dividend of $0.32 per share. The dividend is payable February 17, 2020 to shareholders of record on February 3, 2020.
Casey's fiscal guidance for 2020
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 $88.50 and its currently trading at $153.81. Thats a very handsome 73.8% return over the last 5 years.
Casey's is trading at a little bit closer to its 52 week high of $179.21 than it is to its 52 week low of $121.24 which to us is indication that the sentiment and momentum of Casey's stock is positive.
Casey's is trading at a little bit closer to its 52 week high of $179.21 than it is to its 52 week low of $121.24 which to us is indication that the sentiment and momentum of Casey's stock is positive.
Casey's General (NASDAQ:CASY) stock price history over the last 5 years
Recent coverage of Casey's General Stores
The extract below covers the latest earnings from Casey's as obtained from TheStreet.com
Casey's General Store, Inc. (CASY) - Get Report , the operator of convenience stores and gasoline stations, reported less income than in previous quarters, but strong earnings have investors high on the stock. The company rose $3.39, or 2.58%, to $134.68 a share in Tuesday trading after it substantially beat consensus EPS estimates. The Iowa-based chain reported earnings of $1.13 a share compared to the estimate of 65 cents each
.
"We are optimistic about the direction we are moving the Company," CEO Terry Handley said. "Effective operating expense control, combined with a favorable fuel margin environment and continued focus on strategic pricing produced strong diluted earnings-per-share growth." Company executives declared a dividend of 29 cents per share for the quarter. Its revenue came in lower than expected, reporting $2.05 billion during the third quarter compared to the $2.18 billion analysts anticipated.
Read the full article here
Casey's General Store, Inc. (CASY) - Get Report , the operator of convenience stores and gasoline stations, reported less income than in previous quarters, but strong earnings have investors high on the stock. The company rose $3.39, or 2.58%, to $134.68 a share in Tuesday trading after it substantially beat consensus EPS estimates. The Iowa-based chain reported earnings of $1.13 a share compared to the estimate of 65 cents each
.
"We are optimistic about the direction we are moving the Company," CEO Terry Handley said. "Effective operating expense control, combined with a favorable fuel margin environment and continued focus on strategic pricing produced strong diluted earnings-per-share growth." Company executives declared a dividend of 29 cents per share for the quarter. Its revenue came in lower than expected, reporting $2.05 billion during the third quarter compared to the $2.18 billion analysts anticipated.
Read the full article here
Casey's fuel station and convenience store
Casey's General Stores (NASDAQ: CASY) latest stock valuation
So based on Casey's latest 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 (full value) price on Casey's General Stores of $163.70 a stock (up slightly from our 1st quarter 2020 earnings report valuation of Casey's)
. We therefore believe the stock is full priced to a little undervalued at its current price. 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 $147.30 a stock. We expect the stock price pf Casey's General Stores to kick up from its current levels to levels closer to our target price in coming weeks and months
. We therefore believe the stock is full priced to a little undervalued at its current price. 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 $147.30 a stock. We expect the stock price pf Casey's General Stores to kick up from its current levels to levels closer to our target price in coming weeks and months
Next earnings release of Casey's General Stores
It is expected that Casey's will release their 3rd quarter 2020 earnings report in early March 2020