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.
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.