CST
CST Brands Inc
Consumer, Industrial/Transportation
06/12/2015
Presented
| Date | 06/09/2015 |
| Price | $39.44 |
| Market Cap | N/A |
| Ent Value | $5.21B |
| P/E Ratio | 14.92x |
| Book Value | $9.65 |
| Div Yield | 0.57% |
| Shares O/S | 76.88M |
| Ave Daily Vol | 759,290 |
| Short Int | N/A |
Current
| Price | $48.53 |
| Market Cap | $3.68B |
| CST Brands, Inc. operates as a holding company that conducts substantially all of its operations through its subsidiaries. It is an independent retailer of motor fuel and convenience merchandise items in the U.S. and eastern Canada. The company's operations include the sale of motor fuel at convenience stores, filling stations and cardlocks, the sale of convenience merchandise items and services at convenience stores and the sale of heating oil to residential customers and heating oil and motor fuel to small commercial customers. The company operates through three business segments: U.S. Retail, Retail Canada and CrossAmerica. The Retail U.S. segment sells motor fuel primarily under the Valero and Diamond Shamrock brands, convenience merchandise items and other services through convenience stores operated predominantly under the Corner Store name in nine states, with significant concentrations in Texas and Colorado. The Retail Canada segment sells Ultramar-branded motor fuel, convenience merchandise items and other services through convenience stores operated predominantly under the Corner Store/Dépanneur du Coin names in six provinces in eastern Canada, with a significant concentration in Québec. The CrossAmerica segment consists of wholesale and retail distribution of motor fuel and convenience merchandise and the ownership and leasing of real estate used in the retail distribution of motor fuel in the U.S. The company was founded on November 7, 2012 and is headquartered in San Antonio, TX. |
Publicly traded companies mentioned herein: Crossamerica Partners LP (CAPL), CST Brands Inc (CST), Energy Transfer Partners LP (ETP), Marathon Oil Corp (MRO), Murphy Oil Corp (MUR), Murphy USA Inc (MUSA), Valero Energy Corp (VLO)
Highlights
The presenter is long shares of CST Brands, highlighting a series of events over the next 6 - 12 months, coupled with possible financial engineering that could see the share price appreciate to $60. In particular, the presenter believes CST isn’t accurately credited for its real estate, nor is the value of its recent acquisition of the GP of Lehigh Gas Partners properly assessed. Combined with a non-zero takeover possibility in an industry that has seen significant deal activity, the presenter is bullish on opportunities to unlock value in CST.
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