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Is CASY Stock Too Expensive or Still Worth Buying Now?
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Key Takeaways
CASY posted 10.2% growth in inside sales and a 10% increase in retail fuel gallons sold.
CASY generated $722 million in free cash flow and raised its quarterly dividend 14%.
CASY trades at 39.07X forward earnings, above industry, sector and S&P 500 levels.
Casey’s General Stores, Inc. (CASY - Free Report) has given investors plenty of operating momentum to consider. Fiscal 2026 results showed gains across inside sales, fuel profit and store expansion.
The harder question is valuation. After a sharp stock run, investors need to weigh a stronger business against a multiple that already reflects high confidence.
Casey's General Stores, Inc. Price, Consensus and EPS Surprise
Casey’s fiscal 2026 performance gives bulls a clear operating case. Total inside sales increased 10.2%, while inside same-store sales rose 4.2%, or 7% on a two-year stack basis.
Prepared food and dispensed beverage sales rose 10.2% to $1.78 billion, with same-store sales up 5.2%. Grocery and general merchandise revenues increased 10.1% to $4.56 billion, supported by non-alcoholic beverages.
Fuel added another layer of earnings support. Retail fuel gallons sold increased 10% to 3.52 billion gallons, while average fuel margin improved to 42.6 cents per gallon from 38.7 cents in fiscal 2025.
Management’s fiscal 2027 outlook also remains constructive. Casey’s expects inside same-store sales to rise 2% to 5%, inside margin to stay above 42% and EBITDA to increase 8% to 10%.
Image Source: Zacks Investment Research
Casey’s Cash Flow Supports the Story
Casey’s is converting operating strength into cash. In fiscal 2026, net cash provided by operating activities was $1.38 billion, and free cash flow reached $722 million after purchases of property and equipment.
The balance sheet also gives the company room to invest. Casey’s ended fiscal 2026 with $523 million in cash and cash equivalents and about $1.4 billion in available liquidity.
Return on invested capital reached 12.7%, up 120 basis points from the prior year. The company also raised its quarterly dividend 14% to 65 cents per share, marking the 27th consecutive annual dividend increase.
Shareholder returns remain part of the capital allocation plan. Casey’s repurchased about $63 million of shares in the fourth quarter and expects about $200 million in share repurchases in fiscal 2027.
CASY Valuation Looks Harder to Ignore
Valuation is the main counterweight. CASY trades at 39.07X forward 12-month earnings, above 30.19X for the Zacks sub-industry, 22.42X for the Zacks sector and 21.32X for the S&P 500.
The stock also looks expensive against its own history. Over the past five years, CASY has traded as high as 44.48X and as low as 19.10X, with a five-year median of 23.48X.
That premium may be easier to defend when margins, fuel profitability and store growth are all moving in the right direction. Still, the setup leaves less room for disappointment if execution slips.
Walmart Inc. (WMT - Free Report) and Costco Wholesale Corporation (COST - Free Report) are relevant comparison points for investors watching value-oriented retail traffic and grocery-related spending. Both companies compete for household wallet share, which makes consumer spending trends important across the broader retail landscape.
Casey’s Costs Could Limit Upside
Higher expenses could limit the next leg of upside. Operating expenses rose 11.2% in fiscal 2026 to $2.84 billion as Casey’s operated more stores and absorbed higher labor, credit card and incentive-related costs.
Management expects fiscal 2027 operating expenses to increase 5% to 7%. That guidance means Casey’s needs continued gross profit growth to keep margins moving in the right direction.
Interest expense is another factor. Net interest expense increased 15.1% in fiscal 2026 to $96.6 million, mainly tied to debt issued to partially fund the Fikes acquisition.
Competition also remains intense across convenience stores, foodservice and retail fuel. Promotional pricing, loyalty offers and broader product selections from larger retailers could pressure traffic or pricing flexibility.
CASY Looks Strong but Not Cheap
The bottom line is balanced. Casey’s business looks strong, with inside sales momentum, healthy fuel economics and unit growth supporting the earnings story.
The stock, however, no longer looks cheap on conventional valuation measures. At the current multiple, investors are paying for continued execution, steady integration benefits and resilient consumer demand.
CASY may still appeal to investors who prioritize operating quality and earnings momentum. For valuation-sensitive buyers, the premium multiple makes entry timing more important after the stock’s strong run.
Casey’s Rating Signals Add Context
CASY currently carries a Zacks Rank #1 (Strong Buy). That rank points to favorable earnings estimate momentum, which is a constructive signal for near-term stock prospects. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock also has a Value Score of A. Zacks Style Scores are designed to complement the Zacks Rank, and an A grade is favorable for investors focused on value characteristics.
Together, the Zacks Rank #1 and Value Score of A support the investment-worthiness case. Investors still need to weigh those signals against a valuation that already assumes a lot of good news.
View the Zacks #1 Rank List
Image: Bigstock
Is CASY Stock Too Expensive or Still Worth Buying Now?
Key Takeaways
Casey’s General Stores, Inc. (CASY - Free Report) has given investors plenty of operating momentum to consider. Fiscal 2026 results showed gains across inside sales, fuel profit and store expansion.
The harder question is valuation. After a sharp stock run, investors need to weigh a stronger business against a multiple that already reflects high confidence.
Casey's General Stores, Inc. Price, Consensus and EPS Surprise
Casey's General Stores, Inc. price-consensus-eps-surprise-chart | Casey's General Stores, Inc. Quote
CASY Growth Metrics Still Impress
Casey’s fiscal 2026 performance gives bulls a clear operating case. Total inside sales increased 10.2%, while inside same-store sales rose 4.2%, or 7% on a two-year stack basis.
Prepared food and dispensed beverage sales rose 10.2% to $1.78 billion, with same-store sales up 5.2%. Grocery and general merchandise revenues increased 10.1% to $4.56 billion, supported by non-alcoholic beverages.
Fuel added another layer of earnings support. Retail fuel gallons sold increased 10% to 3.52 billion gallons, while average fuel margin improved to 42.6 cents per gallon from 38.7 cents in fiscal 2025.
Management’s fiscal 2027 outlook also remains constructive. Casey’s expects inside same-store sales to rise 2% to 5%, inside margin to stay above 42% and EBITDA to increase 8% to 10%.
Image Source: Zacks Investment Research
Casey’s Cash Flow Supports the Story
Casey’s is converting operating strength into cash. In fiscal 2026, net cash provided by operating activities was $1.38 billion, and free cash flow reached $722 million after purchases of property and equipment.
The balance sheet also gives the company room to invest. Casey’s ended fiscal 2026 with $523 million in cash and cash equivalents and about $1.4 billion in available liquidity.
Return on invested capital reached 12.7%, up 120 basis points from the prior year. The company also raised its quarterly dividend 14% to 65 cents per share, marking the 27th consecutive annual dividend increase.
Shareholder returns remain part of the capital allocation plan. Casey’s repurchased about $63 million of shares in the fourth quarter and expects about $200 million in share repurchases in fiscal 2027.
CASY Valuation Looks Harder to Ignore
Valuation is the main counterweight. CASY trades at 39.07X forward 12-month earnings, above 30.19X for the Zacks sub-industry, 22.42X for the Zacks sector and 21.32X for the S&P 500.
The stock also looks expensive against its own history. Over the past five years, CASY has traded as high as 44.48X and as low as 19.10X, with a five-year median of 23.48X.
That premium may be easier to defend when margins, fuel profitability and store growth are all moving in the right direction. Still, the setup leaves less room for disappointment if execution slips.
Walmart Inc. (WMT - Free Report) and Costco Wholesale Corporation (COST - Free Report) are relevant comparison points for investors watching value-oriented retail traffic and grocery-related spending. Both companies compete for household wallet share, which makes consumer spending trends important across the broader retail landscape.
Casey’s Costs Could Limit Upside
Higher expenses could limit the next leg of upside. Operating expenses rose 11.2% in fiscal 2026 to $2.84 billion as Casey’s operated more stores and absorbed higher labor, credit card and incentive-related costs.
Management expects fiscal 2027 operating expenses to increase 5% to 7%. That guidance means Casey’s needs continued gross profit growth to keep margins moving in the right direction.
Interest expense is another factor. Net interest expense increased 15.1% in fiscal 2026 to $96.6 million, mainly tied to debt issued to partially fund the Fikes acquisition.
Competition also remains intense across convenience stores, foodservice and retail fuel. Promotional pricing, loyalty offers and broader product selections from larger retailers could pressure traffic or pricing flexibility.
CASY Looks Strong but Not Cheap
The bottom line is balanced. Casey’s business looks strong, with inside sales momentum, healthy fuel economics and unit growth supporting the earnings story.
The stock, however, no longer looks cheap on conventional valuation measures. At the current multiple, investors are paying for continued execution, steady integration benefits and resilient consumer demand.
CASY may still appeal to investors who prioritize operating quality and earnings momentum. For valuation-sensitive buyers, the premium multiple makes entry timing more important after the stock’s strong run.
Casey’s Rating Signals Add Context
CASY currently carries a Zacks Rank #1 (Strong Buy). That rank points to favorable earnings estimate momentum, which is a constructive signal for near-term stock prospects. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock also has a Value Score of A. Zacks Style Scores are designed to complement the Zacks Rank, and an A grade is favorable for investors focused on value characteristics.
Together, the Zacks Rank #1 and Value Score of A support the investment-worthiness case. Investors still need to weigh those signals against a valuation that already assumes a lot of good news.