Buy or Sell Casey's General Stores Stock Ahead of Earnings?
Casey's General Stores (Nasdaq: CASY) is a midcap company that operates within the food and staples retailing industry. Its market cap is $5 billion today, and the total one-year return is -5.85% for shareholders.
Casey's General Stores stock is underperforming the market. It's beaten down, but it reports earnings tonight. So is it a good time to buy? To answer this question, we've turned to the Investment U Stock Grader. Our Research Team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✗ Earnings-per-Share (EPS) Growth: Casey's General Stores reported a recent EPS growth rate of -40.82%. That's below the Food and staples retailing industry average of 11.52%. That's not a good sign. We like to see companies that have higher earnings growth.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the food and staples retailing industry is 28.77. And Casey's General Stores’ ratio comes in at 23.6. It's trading at a better value than many of its competitors.
✓ Debt-to-Equity : The debt-to-equity ratio for Casey's General Stores stock is 76.54%. That's below the food and staples retailing industry average of 78.52%. The company is less leveraged.
✓ Free Cash Flow per Share Growth : Casey's General Stores’ FCF has been higher than that of its competitors over the last year. That's good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth. It's one of our most important fundamental factors.
✗ Profit Margins : The profit margin of Casey's General Stores comes in at 1.29% today. And generally, the higher, the better. We also like to see this margin above that of its competitors. Casey's General Stores’ profit margin is below the food and staples retailing average of 3.19%. So that's a negative indicator for investors.
✓ Return on Equity : Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for Casey's General Stores is 17.22%, and that's above its industry average ROE of 16.67%.
Casey's General Stores stock passes four of our six key metrics today. That's why our Investment U Stock Grader rates it as a Buy With Caution.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth. For more details, click here.