Casey's General Stores: Still Lacking Margin Of Safety
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Eleceed Capital596 FollowersFollow5ShareSavePlay(8min)CommentsSummaryCasey's General Stores remains a hold as valuation is stretched and guidance implies slower growth ahead.CASY raised FY2026 EBITDA growth guidance to 15–17%, but this still signals a deceleration versus 1H 2026.Integration of CEFCO is margin-dilutive, with synergies not expected until FY2027, weighing on near-term profitability.Rising same-store operating expenses and a ~29x forward P/E leave little margin for error or multiple expansion. Luis Alvarez/DigitalVision via Getty Images Summary I gave a hold rating to Casey’s General Stores (CASY) because guidance implies slower growth ahead and the valuation multiple wasn’t cheap. I reiterate a hold rating because the setup still didn’tThis article was written byEleceed Capital596 FollowersFollowI'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality companies at a discount to their intrinsic value and holding them for the long haul, allowing them to compound their earnings and shareholder returns.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You