Casey's General StoresSTU:CS2 +0.61%69 Gross Margin % is 23.63% as of Apr. 2026, which is 5% above its 10-year median of 22.47. GuruFocus rates STU:CS2 with a GF Score™ of 69/100 and a GF Value™ of €382.06 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Casey's General Stores ranks worse than 71.08% on this metric.
STU:CS2's Gross Margin % is ranked worse than 71.08% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.25
vs STU:CS2: 24.61
Casey's General Stores had a gross margin of 23.63% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Casey's General Stores was -0.20% per year.
Casey's General Stores (STU:CS2) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Casey's General Stores had a gross margin of 23.63% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Casey's General Stores Gross Margin % Related Terms
Casey's General Stores Gross Margin % Historical Data
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The historical data trend for Casey's General Stores's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:CS2 vs WSM, ULTA, DKS: Gross Margin % Comparison
For the Specialty Retail subindustry, Casey's General Stores's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Casey's General Stores Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Casey's General Stores's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Casey's General Stores's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Casey's General Stores (STU:CS2) has a Gross Margin % of 23.63% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Casey's General Stores and its competitors. This is near median its historical median of 22.47. Over the past decade, Casey's General Stores' Gross Margin % has ranged from 20.35 to 27.06. According to the industry distribution chart, Casey's General Stores ranks #794 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 71.1%.
Is Casey's General Stores' Gross Margin % too high?
Casey's General Stores' current Gross Margin % of 23.63% is near median its 10-year median of 22.47. Over the past 10 years, this metric has ranged from a low of 20.35 to a high of 27.06. The Retail - Cyclical industry median Gross Margin % is 36.25. Casey's General Stores' value of 23.63% is 34.8% below this industry median. Based on the distribution chart, Casey's General Stores ranks #794 out of 1117 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Casey's General Stores has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Casey's General Stores' Gross Margin % compare to WSM and ULTA?
According to the Retail - Cyclical industry distribution chart, Casey's General Stores ranks #794 out of 1117 companies for Gross Margin %. This places Casey's General Stores in the lower half of its industry. The industry median Gross Margin % is 36.25. Casey's General Stores' value of 23.63% is 34.8% below this benchmark. Historically, Casey's General Stores' own Gross Margin % has ranged from 20.35 to 27.06 over the past decade. While the company's 10-year median is 22.47 vs. the industry median of 36.25, Casey's General Stores has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.25, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Casey's General Stores's current Gross Margin % of 23.63% is 34.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Casey's General Stores and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Casey's General Stores's current Gross Margin % is 23.63%, which is near median its own 10-year median of 22.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Casey's General Stores stock overvalued right now?
Based on GuruFocus' analysis, Casey's General Stores (STU:CS2) is currently considered Significantly Overvalued. The stock's GF Value™ is €382.06, compared to a current price of €729.80 — trading 91% above its estimated fair value. The current Gross Margin % is 23.63%, which is near median its 10-year median of 22.47 and 34.8% below the Retail - Cyclical industry median of 36.25. Casey's General Stores' overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Casey's General Stores (STU:CS2), the current Gross Margin % is 23.63% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Casey's General Stores (STU:CS2) Overvalued in 2026?
Based on GuruFocus' analysis, Casey's General Stores stock appears to be overvalued.
The current stock price of €729.80 is trading 91% above its estimated GF Value™ of €382.06.
GuruFocus considers Casey's General Stores to be Significantly Overvalued.
Key valuation signals for STU:CS2:
Gross Margin %: 23.63% (near median its 10-year median of 22.47)
GF Value™: €382.06 vs. price of €729.80 (91% above fair value)
Industry Position: 34.8% below the Retail - Cyclical median (#794 of 1117)
No single metric tells the full story. See the STU:CS2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Casey's General Stores Inc serves as convenience store chain with its 2,900 locations, positioned in the Midwest United States. About half of Casey's stores are located in rural towns with populations under 5,000. While fueling stations serve as a key traffic driver, about two-thirds of the company's gross profit stems from in-store sales of grocery items, prepared meals, and general merchandise. Casey's owns more than 90% of its stores and operates the majority of its warehousing and distribution processes internally.
69GF Score
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