BIG FUNDAMENTAL
Caseys
General
Stores
is
a
convenience
store
chain
that
operates
in
the
Midwest
with
a
concentration
in
Iowa,
Missouri
and
Illinois.
Similar
to
Wawa
on
the
east
coast,
Caseys
is
a
dominant
convenient
store
in
the
Midwest
region,
in
which
it
has
offered
its
well-known
specialty
pizza
April 2016
Investment
Factors
Below
are
several
points
that
I
feel
must
be
made
to
help
further
understand
the
continued
upside
potential
held
by
this
company.
Continued
enthusiasm
for
new
store
growth
Caseys
General
Stores
has
a
goal
of
building
or
acquiring
75-113
stores
in
fiscal
2016,
within
the
same
range
of
their
2015
number
that
totaled
81.
They
also
are
striving
to
remodel
100
locations
for
the
year.
Based
on
their
quarterly
reports
thus
far,
they
are
well
on
their
way
to
accomplishing
both.
Addition
of
a
second
distribution
center
As
of
February
2016,
operations
have
commenced
in
Caseys
second
distribution
center,
located
in
Terre
Haute,
Indiana.
This
project
now
makes
certain
that
most
proposed
and
all
active
stores
are
within
a
500-mile
radius
of
one
of
the
distribution
centers,
what
the
company
sees
as
the
optimum
efficiency
range.
With
this
addition,
operating
costs
can
be
expected
to
decrease
over
several
years,
even
with
an
increased
store
count.
Lower
fuel
prices
As
CASY
states
time
and
time
again
in
its
annual
report,
demand
for
fuel
is
what
drives
the
demand
for
the
rest
of
their
product
offering.
While
fuel
is
a
majority
of
the
companys
revenues,
products
sold
within
the
store
hold
much
larger
profit
margins
and
a
much
larger
share
of
the
companys
bottom-line
profits.
While
it
is
far
beyond
me
where
exactly
oil
prices
will
rest
a
year
from
now,
two
years
from
now,
or
even
in
a
week,
current
prices
sit
at
relative
low
points,
which
has
led
many
more
consumers
to
find
it
affordable
to
drive
on
a
full-time
basis,
which
then
bolsters
the
sale
of
gasoline
and
thus
the
sale
of
Grocery
and
Prepared
Foods,
in
Caseys
instance.
Meeting
of
paced-out
goals
Despite
rapid
growth
and
improvement
in
most
categories,
Caseys
management
does
not
set
next-year
goals
based
on
past
performance,
but
rather
based
on
requirements
for
steady
and
consistent
growth.
For
example,
while
Grocery
and
Prepared
Foods
experienced
same-store
growth
of
7.8%
and
12.4%,
respectively,
management
has
set
the
goals
for
the
following
fiscal
year
of
6.2%
and
10.4%.
While
neither
of
these
goals
is
greater
than
the
results
posted
in
the
past
year,
they
are
still
a
gradual
increase
from
the
goals
in
the
same
category
from
a
year
ago.
This
patient
expectation
of
growth
has
put
Caseys
in
a
position
to
meet
almost
all
of
their
growth
goals
with
ease
for
the
foreseeable
future.
EPS
per-share
growth
From
2014
to
2015,
EPS
grew
41.2%
from
$3.30
to
$4.66.
Based
on
the
quarterly
reports,
CASY
looks
likely
to
grow
this
figure
by
a
significant
amount
again
in
2016.
Catalyst
As
long
as
Caseys
General
Store
continues
to
fulfill
their
goals
for
each
division,
expand
at
a
profitable
rate,
and
hold
their
margins
on
in-store
items,
an
impressive
return
to
shareholders
in
the
form
of
dividends
and
capital
gains
will
come
in
due
time.