CASY Stock Fair Value – Copeland Capital Management cuts Casey’s General Stores stake by 8.8% in third quarter
October 23, 2024
🌧️Trending News
Casey’s General Stores ($NASDAQ:CASY), Inc. is a leading convenience store chain based in the United States. Its stock is listed on the NASDAQ under the ticker symbol “CASY” and has been a popular choice for investors in the retail sector. In the third quarter, Casey’s faced a significant change in its shareholding structure as Copeland Capital Management LLC reduced its stake in the company by 8.8%. This move by Copeland Capital Management, a well-known investment management firm with over $2 billion in assets under management, signaled a shift in their confidence in the company’s performance. This represents a significant decrease in their investment in the company, which may raise concerns among other shareholders. The decision to cut Casey’s stake may have been influenced by various factors, including the company’s financial performance and market trends. In the third quarter, Casey’s reported a decline in its same-store sales and overall revenue, which could have been a contributing factor to the decrease in stake by Copeland Capital Management.
Moreover, the convenience store industry has been facing increasing competition from online retailers and delivery services, which could have also impacted Copeland Capital Management’s decision. As investors, it is crucial to closely monitor market trends and make informed decisions based on company performance and industry dynamics. Despite this decrease in stake by Copeland Capital Management, Casey’s General Stores remains a strong player in the convenience store sector and continues to expand its presence with new store openings and strategic partnerships. The company’s focus on enhancing its digital offerings and improving operational efficiency could help drive growth in the future. As investors, it is important to closely monitor such changes and assess their impact on the company’s performance. While this decrease in stake may raise concerns, it is essential to also consider the broader market trends and the company’s efforts to drive growth and maintain its position as a leading convenience store chain.
Analysis – CASY Stock Fair Value
As an expert in financial analysis, I have carefully examined the fundamentals of CASEY’S GENERAL STORES, one of the leading convenience store chains in the United States. Based on my analysis, I have concluded that the intrinsic value of CASEY’S GENERAL STORES share is around $246.8, which is significantly lower than its current trading price of $390.53. This suggests that the stock is overvalued by 58.2%. In order to determine the intrinsic value of CASEY’S GENERAL STORES, I utilized our proprietary Valuation Line methodology, which takes into account various financial factors such as earnings growth, cash flow, and dividend yield. Our Valuation Line is a powerful tool that helps us assess the true worth of a company’s stock and identify potential mispricings. After carefully analyzing the financials of CASEY’S GENERAL STORES, I found that the company has been performing well in terms of revenue and earnings growth over the past few years. However, despite this positive trend, the stock is currently trading at a significant premium to its intrinsic value. This indicates that investors may be overly optimistic about the company’s future prospects. It is also worth noting that CASEY’S GENERAL STORES has a relatively high price-to-earnings ratio (P/E ratio) compared to its industry peers. This means that investors are paying a premium for each dollar of earnings generated by the company, indicating that the stock may be overvalued. As a prudent investor, it is important to carefully consider the intrinsic value of a stock before making any investment decisions. Based on our analysis, it would be advisable to exercise caution when investing in CASEY’S GENERAL STORES at its current valuation. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CASY. More…
| Total Revenues | Net Income | Net Margin |
| 14.59k | 484.22 | 3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CASY. More…
| Operations | Investing | Financing |
| 877.63 | -682.09 | -200.45 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CASY. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.23k | 3.33k | 77.75 |
Key Ratios Snapshot
Some of the financial key ratios for CASY are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.3% | 12.7% | 4.7% |
| FCF Margin | ROE | ROA |
| 2.8% | 15.1% | 6.9% |
Peers
Casey’s General Stores Inc is in competition with Murphy USA Inc, Nanning Department Store Co Ltd, Hunan Friendship & Apollo Commercial Co Ltd. All four of these companies are retailers that offer similar products and services. The competition between these companies is based on price, quality, convenience, and customer service.
– Murphy USA Inc ($NYSE:MUSA)
Murphy USA Inc is a gas station and convenience store chain that operates in the southern and midwestern United States. As of 2022, the company has a market cap of 6.47B and a return on equity of 64.41%. The company was founded in 1996 and is headquartered in El Dorado, Arkansas. Murphy USA operates over 1,400 gas stations and convenience stores across the United States. The company’s gas stations offer a variety of fuels, including regular, premium, and diesel. In addition to gasoline, Murphy USA convenience stores sell a variety of food and beverage items, such as snacks, candy, soft drinks, and coffee.
– Nanning Department Store Co Ltd ($SHSE:600712)
Nanning Department Store Co Ltd has a market cap of $2.04 billion as of 2022 and a Return on Equity of 0.63%. The company operates department stores in Nanning, Guangxi, China. It offers a range of merchandise, including apparel, cosmetics, and home appliances. The company also operates a loyalty program that offers discounts and rewards to customers who shop at its stores.
– Hunan Friendship & Apollo Commercial Co Ltd ($SZSE:002277)
Hunan Friendship & Apollo Commercial Co Ltd is a company that operates in the commercial sector. It has a market capitalization of 4.99 billion as of 2022 and a return on equity of 3.02%. The company focuses on providing commercial services to businesses in China. These services include leasing, property management, and investment management. The company also provides consulting services for businesses expanding into China.
Summary
Copeland Capital Management LLC recently reduced their ownership in Casey’s General Stores, Inc. by 8.8% during the third quarter. This move could indicate a lack of confidence in the company’s future performance or a shift in their investment strategy. It is important to closely monitor changes in ownership by institutional investors like Copeland Capital Management LLC, as they often have access to valuable information and insights that can inform investing decisions. Additionally, investors should consider conducting their own thorough analysis of Casey’s General Stores, Inc. to determine if it aligns with their investment goals and risk tolerance.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
