Stock Analysis
- United States
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- Food and Staples Retail
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- NasdaqGS:CASY
Is Casey's General Stores, Inc. (NASDAQ:CASY) Potentially Undervalued?
While Casey's General Stores, Inc. (NASDAQ:CASY) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$249 at one point, and dropping to the lows of US$208. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Casey's General Stores' current trading price of US$208 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Casey's General Stores’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Casey's General Stores
What Is Casey's General Stores Worth?
Good news, investors! Casey's General Stores is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $311.94, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Casey's General Stores’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
Can we expect growth from Casey's General Stores?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a negative profit growth of -7.1% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Casey's General Stores. This certainty tips the risk-return scale towards higher risk.
What This Means For You
Are you a shareholder? Although CASY is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. I recommend you think about whether you want to increase your portfolio exposure to CASY, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping an eye on CASY for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. To help with this, we've discovered 2 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Casey's General Stores.
If you are no longer interested in Casey's General Stores, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
What are the risks and opportunities for Casey's General Stores?
Casey's General Stores, Inc., together with its subsidiaries, operates convenience stores under the Casey's and Casey’s General Store names.
Rewards
Trading at 30.6% below our estimate of its fair value
Earnings grew by 40% over the past year
Risks
Earnings are forecast to decline by an average of 0.4% per year for the next 3 years
Has a high level of debt
Further research on
Casey's General Stores
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About NasdaqGS:CASY
Casey's General Stores
Casey's General Stores, Inc., together with its subsidiaries, operates convenience stores under the Casey's and Casey’s General Store names.
Undervalued with solid track record.
