Is Speedway for sale? The short answer is yes, and here’s why:
First, the company is cash-flow positive. Second, it’s growing fast and showing no signs of slowing down. Third, it has a tremendous amount of room to grow. Fourth, it’s highly profitable. Finally, the shares are attractive. They trade for a discount to the company’s book value.
Let’s examine each of these factors in turn.
Cash-Flow Positive
As we’ve established, the short answer to the question is “yes.” Speedway happens to be the largest convenience store chain in North America. What this means is that the company generates more than enough cash to pay for its operations and provide shareholders with a decent amount of returns. In other words, Speedway is an “income-producing company.” This isn’t a fluke. Since 2012, the company has been cash-flow positive, meaning it has consistently generated more cash than it’s needed to run the business. In 2018, for example, it generated $23.9 million in free cash flow.
If you’re looking for a quick way to make money, you could consider buying shares in Speedway. Not only will this move make you a shareholder in the company, but it will also give you direct access to its cash. When you combine this with the fact that Speedway generates more than enough cash flow to cover its operating costs and provide shareholders with a decent return, it’s clear why this is a profitable investment opportunity. The income from the investment will be more than enough to pay for your initial investment and the occasional stock market losses you may encounter.
Growing Quickly
Another important factor to consider is the company’s growth story. Speedway has experienced rapid growth over the past several years. The business expanded from 13 stores in 2012 to 41 stores last year, and the number continues to increase. The average store size is currently around 15,000 square feet, so there’s plenty of room to expand even more.
The opportunity for accelerated growth comes from the fact that fuel deliveries were up 12% in 2018 as compared to 2017. This has led to a corresponding increase in business, as people are driving to the pump more often than ever before. Although this is great news for the company, it also means there’s more work to be done. In order to keep up with the increased demand, it will need to invest heavily in new stores and equipment.
If you want to get in on the ground floor of a profitable business with the potential to grow even more, consider buying shares in Speedway. You’ll become an instant owner of a company that’s experienced and continues to grow each year.
A Tremendous Amount Of Room To Grow
Another important factor to consider is the fact that Speedway has more than enough room to grow. If you look at the company’s financials, you’ll see that its sales increased by 22% from 2017 to 2018. The average store size has also increased by 28% since 2016. There’s no question that the industry is shifting to online grocery shopping, and the convenience store industry is definitely taking notice. However, even if the industry started changing today, it would still take a few years before the competition catches up. This is a huge advantage for the company.
The market share for convenience stores in the U.S. is currently around 5%. This means that if you own a significant number of shares in Speedway, you’ll have the opportunity to grow your business quickly. It’s not just about taking on the competition. It’s about expanding an existing business and profiting off the demand created by the pandemic. The demand for gasoline, coffee, and other store items have increased dramatically over the past year, and this trend shows no signs of stopping.
Highly Profitable
If you’re looking for a quick way to make money, you could consider buying shares in Speedway. The business is highly profitable, which isn’t surprising given its volume of sales. In fact, it has the highest revenue per square foot among convenience stores. This is mostly due to the fact that it has so many large locations, so people are driving to the pump more often than ever before. The demand for gasoline and coffee continues to rise, especially since many small businesses have closed down due to the pandemic. This has created more than enough demand to keep the business profitable for years to come.
Another important factor to consider is the type of customers the business attracts. While you may not want to become too dependent on one particular type of customer (like coffee customers only), you can learn a lot about a business by examining the types of customers it attracts. In this case, it’s easy to see why the company focuses on adult customers. These are the people that need the products the most since they’re spending more time in their cars. There’s also the option to buy discounted gift cards for adult customers, which become more valuable as time goes by.
When it comes to investing in a company like Speedway, you want to make sure you’re purchasing a stock that’s not only going to give you an income stream but also has the potential to increase in value. The shares in Speedway offer the perfect opportunity for a cheap entry point into the highly profitable convenience store industry. The cash flow alone makes it worth considering, but add in the fact that shares are well below their book value, and it’s clear why many people are interested in this particular stock.
Attractive Investment
If you’re looking for a way to make money, you could consider buying shares in Speedway. The reason this is an attractive investment is because the business is selling at a discount to its book value. The book value of a stock is simply the value an investor would place on the company’s assets (like real estate) without taking into account any earnings or sales for that particular company. In most cases, stocks trade for a discount to their book value for a reason. The most common example is that the company is either cash-flow positive or has a tremendous amount of room to grow. In either case, the discounted price tags on the stocks make them more attractive to investors.
In most cases, stocks will decline in value after peaking. This is usually a result of a shift in consumer behavior or a decline in overall demand. However, in some cases, stocks may remain flat or increase in value after reaching a high.
The price of Speedway stock is currently declining, which makes it a good buy for investors since it’s trading at such a bargain. The fact that it’s selling for less than what an investor would value it at means there’s still some room to grow, which is attractive to those who want to make a quick profit.
On the opposite end of the spectrum, you have the stocks from CVS and Walmart, which are selling for significantly more than their book value. The fact that these stocks sell for such a high price shows that the market has already factored in the companies’ poor financial performance over the last few years. The only way these stocks can remain popular is if the demand for their products increase significantly. While this is usually the result of a new product announcement or launch, it can also mean that the economy is on the rebound and people are spending more money.
Keep in mind: not all cheap stocks are created equal. The price may be low, but this doesn’t mean the company is necessarily worth acquiring. The risk you take when investing in a cheap stock is that it may decline in value. The key is to find a company that is either cash-flow positive or has tremendous room to grow. In either case, it’s an opportunity to make a quick profit or build a long-term position that may eventually pay off.