Caseys Story

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CASY -- USA Stock  

USD 207.24  3.76  1.85%

Caseys General Stores is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 7th of December 2020. Caseys General Return on Investment is fairly stable at the moment as compared to the past year. Caseys General reported Return on Investment of 13.56 in 2019. Revenue to Assets is likely to rise to 2.98 in 2020, whereas Net Income Per Employee is likely to drop 4,932 in 2020. As many of us are excited about consumer defensive space, it is fair to break down Caseys General Stores as a unique alternative.
Published over a month ago
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Continue to hold Caseys (NASDAQ:CASY) based on its current debt obligations?
Caseys General Stores currently holds 1.28 B in liabilities with Debt to Equity (D/E) ratio of 0.73, which is about average as compared to similar companies. The entity has a current ratio of 1.02, suggesting that it is in a questionable position to pay out its financial obligations when due. The company has Profit Margin (PM) of 3.93 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is normal as compared to the sector avarege. Similarly, it shows Operating Margin (OM) of 9.19 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.09.
Caseys General financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Caseys General, including all of Caseys General's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Caseys General assets, the company is considered highly leveraged. Understanding the composition and structure of overall Caseys General debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Caseys Total Debt

Caseys General Stores liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Caseys General Stores has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Caseys General balance sheet include debt obligations and money owed to different Caseys General vendors, workers, and loan providers. Below is the chart of Caseys main long-term debt accounts currently reported on its balance sheet.
You can use Caseys General Stores financial leverage analysis tool to get a better grip on understanding its financial position

How important is Caseys General's Liquidity

Caseys General financial leverage refers to using borrowed capital as a funding source to finance Caseys General Stores ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Caseys General financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Caseys General's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Caseys General, but it might be worth checking our own buy vs. sell analysis

Caseys General exotic insider transaction detected

Legal trades by Caseys General insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Caseys insider trading alert for general transaction of restricted stock units by Darren Rebelez, President and CEO, on 19th of January 2021. This event was filed by Caseys General Stores Inc with SEC on 2021-01-19. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

The firm reported the previous year's revenue of 7.61 B. Net Income was 298.62 M with profit before overhead, payroll, taxes, and interest of 2.14 B.

Asset Breakdown

3.2 B
Assets Non Current
Current Assets
Total Assets3.57 Billion
Current Assets400.04 Million
Assets Non Current3.17 Billion
Goodwill154.89 Million
Tax Assets20.29 Million

Our take on today Caseys General rise

The total risk alpha is down to -0.13 as of today. Caseys General Stores has relatively low volatility with skewness of 1.08 and kurtosis of 4.21. However, we advise all investors to independently investigate Caseys General Stores to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Takeaway

While some firms under the grocery stores industry are still a bit expensive, Caseys General may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Caseys General.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Caseys General Stores. Please refer to our Terms of Use for any information regarding our disclosure principles.

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