uploads///

A Look at Casey’s Shareholder Returns and Valuations

By

Dec. 13 2016, Updated 9:37 a.m. ET

Market reaction to fiscal 2Q17 earnings

Shares of Casey’s General Stores (CASY) fell 2.0% on December 8, 2016, a day after the company failed to meet expectations in its fiscal 2Q17 results. Casey’s has risen ~2.0% YTD (year-to-date).

In comparison, convenience store peers CST Brands (CST) and Murphy USA (MUSA) have risen 23.0% and 10.0%, respectively, YTD. However, supermarket peers Kroger (KR) and Supervalu (SVU) have fallen 17.0% and 21.0%, respectively, as of December 9, 2016.

Article continues below advertisement

Casey’s announces dividends for next quarter

Casey’s General Stores (CASY) has paid regular dividends since 1991. Along with its earnings release, the company announced a dividend of 24.0 cents per share. That dividend was in line with the previous quarter and 9.1% greater than the dividend offered in the same quarter of the prior year’s period. The dividend is payable on February 15, 2017.

Casey’s offers a one-year forward dividend yield of 0.70% and has a dividend payout of 17.0%. In comparison, other dividend-offering companies in the retail space offer better yields. For example, Walmart (WMT) and Target (TGT) have dividend yields of 2.6% and 3.1%, respectively.

If you’re looking for exposure to Casey’s, you can invest in the ProShares S&P MidCap 400 Dividend Aristocrats (REGL), which has about 2.1% of its holdings in the company. REGL invests in companies that have increased their dividends for at least 15 consecutive years.

Valuations

Casey’s is currently trading at a one-year forward PE (price-to-earnings) ratio of 21.0x. The company is better priced than CST Brands (CST), which is trading at a valuation of 28.3x. Murphy USA (MUSA) and Sunoco (SUN), however, are cheaper than Casey’s, trading at 14.2x and 16.7x, respectively, as of December 9, 2016.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market RealistLogo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.