Casey's General StoresSTU:CS2 +0.61%69 Operating Margin % is 5.14% as of Apr. 2026, which is 20% above its 10-year median of 4.28. 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 1,128 Retail - Cyclical companies, Casey's General Stores ranks better than 62.15% on this metric.
Casey's General Stores (STU:CS2) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Casey's General Stores Operating Margin % Related Terms
Casey's General Stores Operating Margin % Historical Data
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The historical data trend for Casey's General Stores's Operating 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: Operating Margin % Comparison
For the Specialty Retail subindustry, Casey's General Stores's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Casey's General Stores's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Casey's General Stores's Operating Margin % falls into.
Casey's General Stores Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Casey's General Stores's Operating Margin % for the fiscal year that ended in Apr. 2026 is calculated as
* 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.
Casey's General Stores (STU:CS2) has a Operating Margin % of 5.14% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Casey's General Stores and its competitors. This is 20% above median its historical median of 4.28. Over the past decade, Casey's General Stores' Operating Margin % has ranged from 3.16 to 5.89. According to the industry distribution chart, Casey's General Stores ranks #427 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 37.9%.
Is Casey's General Stores' Operating Margin % too high?
Casey's General Stores' current Operating Margin % of 5.14% is 20% above median its 10-year median of 4.28. Over the past 10 years, this metric has ranged from a low of 3.16 to a high of 5.89. The Retail - Cyclical industry median Operating Margin % is 3.91. Casey's General Stores' value of 5.14% is 31.6% above this industry median. Based on the distribution chart, Casey's General Stores ranks #427 out of 1128 companies in the Retail - Cyclical industry, which is above 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' Operating Margin % compare to WSM and ULTA?
According to the Retail - Cyclical industry distribution chart, Casey's General Stores ranks #427 out of 1128 companies for Operating Margin %. This puts Casey's General Stores in the upper half of its industry. The industry median Operating Margin % is 3.91. Casey's General Stores' value of 5.14% is 31.6% above this benchmark. Historically, Casey's General Stores' own Operating Margin % has ranged from 3.16 to 5.89 over the past decade. While the company's 10-year median is 4.28 vs. the industry median of 3.91, Casey's General Stores has consistently been above 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 Operating Margin % for a Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Casey's General Stores's current Operating Margin % of 5.14% is 31.6% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Casey's General Stores and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Casey's General Stores's current Operating Margin % is 5.14%, which is 20% above median its own 10-year median of 4.28. 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 Operating Margin % is 5.14%, which is 20% above median its 10-year median of 4.28 and 31.6% above the Retail - Cyclical industry median of 3.91. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Casey's General Stores (STU:CS2), the current Operating Margin % is 5.14% 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:
Operating Margin %: 5.14% (20% above median its 10-year median of 4.28)
GF Value™: €382.06 vs. price of €729.80 (91% above fair value)
Industry Position: 31.6% above the Retail - Cyclical median (#427 of 1128)
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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