Casey's General Store Stock: A Comprehensive Guide

Overview

Casey's General Store, Inc. (NASDAQ: CASY) is a leading convenience store chain in the United States. As of December 31, 2021, the company operated 2,250 stores in 16 states. Casey's stores are located in small towns and rural areas, and they offer a wide variety of products and services, including fuel, groceries, snacks, and beverages.

Casey's General Store has been a publicly traded company since 1985. The company's stock has performed well over the past several years, and it has outperformed the broader market. In 2021, Casey's stock gained 34.5%, compared to a 28.7% gain for the S&P 500 index.

Financial Performance

Casey's General Store has a strong financial track record. The company has consistently reported positive earnings and revenue growth. In 2021, Casey's reported revenue of $12.5 billion, up 10.2% from the previous year. Net income increased 15.3% to $643.8 million.

Casey's General Store has a strong balance sheet. The company has low levels of debt and ample liquidity. As of December 31, 2021, Casey's had $313.3 million in cash and cash equivalents and $1.2 billion in total debt. The company's debt-to-equity ratio was just 0.34.

Growth Prospects

Casey's General Store has a number of growth opportunities. The company is planning to open new stores, expand its product offerings, and enter new markets.

• New Stores: Casey's General Store plans to open 100-120 new stores per year over the next several years. The company has a pipeline of potential new store sites, and it is confident that it can continue to grow its store base.
• Product Expansion: Casey's General Store is expanding its product offerings to meet the changing needs of its customers. The company is adding new food items, beverages, and general merchandise to its stores.
• New Markets: Casey's General Store is entering new markets in the Midwest and Southeast. The company believes that there is significant opportunity for growth in these regions.

Valuation

Casey's General Store stock is valued at a premium to the broader market. The company's forward P/E ratio is 22.7, compared to a forward P/E ratio of 19.5 for the S&P 500 index.

However, Casey's General Store's premium valuation is justified by its strong financial performance and growth prospects. The company is expected to continue to grow its earnings and revenue at a healthy pace, and it is well-positioned to benefit from the continued growth of the convenience store industry.

Risks

Casey's General Store faces a number of risks, including:

• Competition: The convenience store industry is highly competitive. Casey's General Store faces competition from both national and regional convenience store chains.
• Rising Costs: Casey's General Store is facing rising costs for labor, fuel, and food. The company's margins could be squeezed if costs continue to rise.
• Economic Downturn: A recession could lead to a decline in consumer spending. This could hurt Casey's General Store's sales and earnings.

Conclusion

Casey's General Store is a well-run company with a strong track record of financial performance. The company has a number of growth opportunities, and it is expected to continue to grow its earnings and revenue at a healthy pace. However, Casey's General Store stock is valued at a premium to the broader market, and investors should be aware of the risks involved before investing.

Tables

Table 1: Casey's General Store Financial Highlights

Table 2: Casey's General Store Store Count

Table 3: Casey's General Store Growth Opportunities

Table 4: Casey's General Store Risks

Tips and Tricks

• Buy Casey's General Store stock for the long term. The company has a strong track record of financial performance and growth.
• Consider buying Casey's General Store stock when the market is down. The stock tends to be more volatile than the broader market, so it can be a good opportunity to buy when the market is selling off.
• Set a stop-loss order to protect your profits. A stop-loss order will automatically sell your stock if it falls below a certain price. This can help you to protect your profits if the stock market declines.

Why It Matters

Investing in Casey's General Store stock can be a good way to grow your wealth over the long term. The company is a well-run company with a strong track record of financial performance and growth. Casey's General Store is also well-positioned to benefit from the continued growth of the convenience store industry.

Benefits

Investing in Casey's General Store stock can provide a number of benefits, including:

• Potential for capital appreciation: Casey's General Store stock has the potential to grow in value over the long term. This can provide investors with a capital gain.
• Dividend income: Casey's General Store pays a dividend to its shareholders. This can provide investors with a regular source of income.
• Tax advantages: Dividends are taxed at a lower rate than other types of income. This can provide investors with tax savings.

Pros and Cons

Pros:

• Strong financial performance
• Consistent growth
• Expansion opportunities
• Well-positioned to benefit from the convenience store industry

Cons:

• Premium valuation
• Competition
• Rising costs
• Economic downturn