CASY

Casey's General Stores Inc

Consumer, Event Driven/Special Sit


Presented:12/21/2017
Price:$110.09
Cap:$4.20B
Current Price:$389.23
Cap:$14.45B

Presented

Date12/21/2017
Price$110.09
Market Cap$4.20B
Ent Value$5.40B
P/E Ratio26.98x
Book Value$30.69
Div Yield0.94%
Shares O/S38.18M
Ave Daily Vol462,515
Short Int12.65%

Current

Price$389.23
Market Cap$14.45B
Casey's General Stores, Inc. engages in the management and operation of convenience stores and gasoline stations. It offers food and beverages, health and beauty products, and school supplies. The company was founded by Donald F. Lamberti in 1959 and is headquartered in Ankeny, IA.

Publicly traded companies mentioned herein: Alimentation Couche-Tard Inc (ATD/B CN), Casey’s General Stores Inc (CASY), Murphy USA Inc (MUSA), Seven & i Holdings Co Ltd (3382 JP)

Highlights/ Overview

The presenter is long shares of Casey’s General Stores (CASY), and views the recent sell off from $121 to $107 following disappointing 2Q earnings as a buying opportunity. In his opinion, the market has overreacted to results that were depressed by one month of bad weather (October), and with the stock trading at ~$110 (down ~12% over the past 12 months), the risk/ reward is favorable. A combination of underlying asset value and scale should provide downside protection, and profit driving initiatives and store growth should drive upside to the $130-135 range over the next 12 months. This price objective assumes the company can trade at a 9.5x EV/EBITDA multiple on his FY 2020 EBITDA forecast, which is ~5-6% ahead of the Street.

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Idea Discussion

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