DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
USA - NYSE:DG - US2566771059 - Common Stock
106.14 USD
+1.93 (+1.85%)
106.14 USD
0 (0%)
DG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 40 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of DG get a neutral evaluation. Nothing too spectacular is happening here. DG is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DG had positive earnings in the past year.
DG had a positive operating cash flow in the past year.
Each year in the past 5 years DG has been profitable.
Each year in the past 5 years DG had a positive operating cash flow.
1.2 Ratios
DG's Return On Assets of 3.76% is in line compared to the rest of the industry. DG outperforms 52.50% of its industry peers.
Looking at the Return On Equity, with a value of 14.87%, DG is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
The Return On Invested Capital of DG (5.61%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for DG is in line with the industry average of 8.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 14.87% | ||
| ROIC | 5.61% |
ROA(3y)5.77%
ROA(5y)7.34%
ROE(3y)27.8%
ROE(5y)32.31%
ROIC(3y)8.49%
ROIC(5y)10.34%
1.3 Margins
With a decent Profit Margin value of 2.86%, DG is doing good in the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Profit Margin of DG has declined.
Looking at the Operating Margin, with a value of 4.30%, DG is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
DG's Operating Margin has declined in the last couple of years.
DG has a Gross Margin of 30.15%. This is in the better half of the industry: DG outperforms 72.50% of its industry peers.
DG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.3% | ||
| PM (TTM) | 2.86% | ||
| GM | 30.15% |
OM growth 3Y-20.24%
OM growth 5Y-10.71%
PM growth 3Y-26.62%
PM growth 5Y-14.8%
GM growth 3Y-2.16%
GM growth 5Y-0.66%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DG is creating some value.
The number of shares outstanding for DG remains at a similar level compared to 1 year ago.
Compared to 5 years ago, DG has less shares outstanding
Compared to 1 year ago, DG has an improved debt to assets ratio.
2.2 Solvency
DG has an Altman-Z score of 2.33. This is not the best score and indicates that DG is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of DG (2.33) is worse than 65.00% of its industry peers.
The Debt to FCF ratio of DG is 3.11, which is a good value as it means it would take DG, 3.11 years of fcf income to pay off all of its debts.
DG has a Debt to FCF ratio of 3.11. This is in the better half of the industry: DG outperforms 67.50% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that DG is somewhat dependend on debt financing.
DG's Debt to Equity ratio of 0.71 is in line compared to the rest of the industry. DG outperforms 45.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.73
WACC7.64%
2.3 Liquidity
DG has a Current Ratio of 1.25. This is a normal value and indicates that DG is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.25, DG is doing good in the industry, outperforming 62.50% of the companies in the same industry.
DG has a Quick Ratio of 1.25. This is a bad value and indicates that DG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DG (0.27) is worse than 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The earnings per share for DG have decreased by -3.57% in the last year.
The Earnings Per Share has been decreasing by -2.56% on average over the past years.
Looking at the last year, DG shows a small growth in Revenue. The Revenue has grown by 4.98% in the last year.
Measured over the past years, DG shows a small growth in Revenue. The Revenue has been growing by 7.91% on average per year.
EPS 1Y (TTM)-3.57%
EPS 3Y-16.48%
EPS 5Y-2.56%
EPS Q2Q%9.41%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%5.07%
3.2 Future
DG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.81% yearly.
The Revenue is expected to grow by 4.26% on average over the next years.
EPS Next Y-0.05%
EPS Next 2Y5.6%
EPS Next 3Y8.15%
EPS Next 5Y9.81%
Revenue Next Year4.79%
Revenue Next 2Y4.47%
Revenue Next 3Y4.52%
Revenue Next 5Y4.26%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.09, the valuation of DG can be described as rather expensive.
Based on the Price/Earnings ratio, DG is valued a bit cheaper than the industry average as 67.50% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DG to the average of the S&P500 Index (27.20), we can say DG is valued slightly cheaper.
DG is valuated correctly with a Price/Forward Earnings ratio of 16.08.
DG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DG is cheaper than 75.00% of the companies in the same industry.
DG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 16.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DG is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, DG is valued cheaply inside the industry as 82.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.63 | ||
| EV/EBITDA | 9.94 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.6%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
DG has a Yearly Dividend Yield of 2.24%.
DG's Dividend Yield is rather good when compared to the industry average which is at 2.01. DG pays more dividend than 87.50% of the companies in the same industry.
DG's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
On average, the dividend of DG grows each year by 13.01%, which is quite nice.
DG has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DG decreased recently.
Dividend Growth(5Y)13.01%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DG pays out 43.59% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of DG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.59%
EPS Next 2Y5.6%
EPS Next 3Y8.15%
106.14
+1.93 (+1.85%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.33%
Inst Owner Change-0.73%
Ins Owners0.25%
Ins Owner Change22.21%
Market Cap23.36B
Analysts74.74
Price Target124.41 (17.21%)
Short Float %3.78%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend2.36
Dividend Growth(5Y)13.01%
DP43.59%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.91%
Min EPS beat(2)15.21%
Max EPS beat(2)16.62%
EPS beat(4)3
Avg EPS beat(4)8.11%
Min EPS beat(4)-7.78%
Max EPS beat(4)16.62%
EPS beat(8)6
Avg EPS beat(8)3.92%
EPS beat(12)6
Avg EPS beat(12)-0.25%
EPS beat(16)8
Avg EPS beat(16)-0.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)-1.73%
Revenue beat(4)0
Avg Revenue beat(4)-2.34%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-1.73%
Revenue beat(8)0
Avg Revenue beat(8)-2.63%
Revenue beat(12)0
Avg Revenue beat(12)-2.93%
Revenue beat(16)0
Avg Revenue beat(16)-2.89%
PT rev (1m)4.02%
PT rev (3m)28.1%
EPS NQ rev (1m)4.26%
EPS NQ rev (3m)-7.75%
EPS NY rev (1m)0.05%
EPS NY rev (3m)3.3%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 16.08 | ||
| P/S | 0.56 | ||
| P/FCF | 12.63 | ||
| P/OCF | 7.4 | ||
| P/B | 2.92 | ||
| P/tB | 9.44 | ||
| EV/EBITDA | 9.94 |
EPS(TTM)6.21
EY5.85%
EPS(NY)6.6
Fwd EY6.22%
FCF(TTM)8.41
FCFY7.92%
OCF(TTM)14.35
OCFY13.52%
SpS189.23
BVpS36.4
TBVpS11.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 14.87% | ||
| ROCE | 7.17% | ||
| ROIC | 5.61% | ||
| ROICexc | 5.92% | ||
| ROICexgc | 7.73% | ||
| OM | 4.3% | ||
| PM (TTM) | 2.86% | ||
| GM | 30.15% | ||
| FCFM | 4.44% |
ROA(3y)5.77%
ROA(5y)7.34%
ROE(3y)27.8%
ROE(5y)32.31%
ROIC(3y)8.49%
ROIC(5y)10.34%
ROICexc(3y)8.7%
ROICexc(5y)10.71%
ROICexgc(3y)11.43%
ROICexgc(5y)14.55%
ROCE(3y)10.85%
ROCE(5y)13.21%
ROICexcg growth 3Y-21.19%
ROICexcg growth 5Y-10.21%
ROICexc growth 3Y-19.78%
ROICexc growth 5Y-8.48%
OM growth 3Y-20.24%
OM growth 5Y-10.71%
PM growth 3Y-26.62%
PM growth 5Y-14.8%
GM growth 3Y-2.16%
GM growth 5Y-0.66%
F-Score7
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.11 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 129.49% | ||
| Cap/Sales | 3.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 112.8% | ||
| Profit Quality | 155.32% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 2.33 |
F-Score7
WACC7.64%
ROIC/WACC0.73
Cap/Depr(3y)183.47%
Cap/Depr(5y)179.27%
Cap/Sales(3y)3.91%
Cap/Sales(5y)3.58%
Profit Quality(3y)69.68%
Profit Quality(5y)78.23%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.57%
EPS 3Y-16.48%
EPS 5Y-2.56%
EPS Q2Q%9.41%
EPS Next Y-0.05%
EPS Next 2Y5.6%
EPS Next 3Y8.15%
EPS Next 5Y9.81%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%5.07%
Revenue Next Year4.79%
Revenue Next 2Y4.47%
Revenue Next 3Y4.52%
Revenue Next 5Y4.26%
EBIT growth 1Y-15.15%
EBIT growth 3Y-15.56%
EBIT growth 5Y-3.65%
EBIT Next Year53.39%
EBIT Next 3Y22.02%
EBIT Next 5Y16.3%
FCF growth 1Y1878.11%
FCF growth 3Y-2.07%
FCF growth 5Y3.02%
OCF growth 1Y79.11%
OCF growth 3Y1.49%
OCF growth 5Y6.01%