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A Look at Casey’s Dividends, Valuations, and Ratings

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Valuations summary: Casey’s versus peers

Casey’s (CASY) is currently trading at a one-year forward price-to-earnings ratio of 21.8x. The company is more reasonably priced to competitor CST Brands (CST), which is trading at a valuation of 28x. Murphy USA (MUSA) and Sunoco (SUN) are, however, cheaper compared to Casey’s and are trading at 15.1x and 18.1x, respectively.

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Casey’s dividends announced for the next quarter

Casey’s has paid regular dividends since 1991. The company is a dividend aristocrat and is included in the ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL). REGL invests in companies that have grown their dividends for at least 15 consecutive years. REGL has around 2.2% of its holdings invested in Casey’s.

On September 6, the company announced a dividend of 24 cents per share, payable on November 10. This indicates a 9.1% increase over the dividend offered in 1Q16.

CASY offers a lower dividend yield as compared to other dividend aristocrats like Walmart (WMT) and Target (TGT). The company has a one-year forward dividend yield of around 0.67%. In comparison, WMT and TGT offer higher yields of 2.8% and 3.3%, respectively.

Analyst ratings and target price

13 Wall Street analysts cover CASY. Of these, ten analysts have rated the company a “buy,” and three have recommended a “hold.”

Casey’s stock is currently trading at $133.31, operating closer to the higher end of its 52-week price range of $98.8–$136.2. The stock has been assigned an average target price of $143.8, implying that the analysts see shares rising about 7.9% in the next 12 months.

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