DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DG - US2566771059 - Common Stock
101.7 USD
+1.41 (+1.41%)
101.7 USD
0 (0%)
Overall DG gets a fundamental rating of 5 out of 10. We evaluated DG against 39 industry peers in the Consumer Staples Distribution & Retail industry. DG has an average financial health and profitability rating. DG has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DG was profitable.
DG had a positive operating cash flow in the past year.
In the past 5 years DG has always been profitable.
DG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DG has a Return On Assets of 3.76%. This is comparable to the rest of the industry: DG outperforms 48.72% of its industry peers.
DG has a Return On Equity of 14.87%. This is in the better half of the industry: DG outperforms 64.10% of its industry peers.
DG has a Return On Invested Capital (5.61%) which 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 9.07%.
| 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
DG has a Profit Margin of 2.86%. This is in the better half of the industry: DG outperforms 71.79% of its industry peers.
DG's Profit Margin has declined in the last couple of years.
The Operating Margin of DG (4.30%) is better than 76.92% of its industry peers.
In the last couple of years the Operating Margin of DG has declined.
DG's Gross Margin of 30.15% is fine compared to the rest of the industry. DG outperforms 76.92% 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
DG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DG remains at a similar level compared to 1 year ago.
DG has less shares outstanding than it did 5 years ago.
DG has a better debt/assets ratio than last year.
2.2 Solvency
DG has an Altman-Z score of 2.31. 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.
Looking at the Altman-Z score, with a value of 2.31, DG is doing worse than 66.67% of the companies in the same industry.
DG has a debt to FCF ratio of 3.11. This is a good value and a sign of high solvency as DG would need 3.11 years to pay back of all of its debts.
DG has a better Debt to FCF ratio (3.11) than 71.79% of its industry peers.
DG has a Debt/Equity ratio of 0.71. This is a neutral value indicating DG is somewhat dependend on debt financing.
DG has a Debt to Equity ratio of 0.71. This is comparable to the rest of the industry: DG outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.74
WACC7.62%
2.3 Liquidity
A Current Ratio of 1.25 indicates that DG should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.25, DG is doing good in the industry, outperforming 66.67% 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.
DG's Quick ratio of 0.27 is on the low side compared to the rest of the industry. DG is outperformed by 74.36% 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.
Measured over the past years, DG shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.56% on average per year.
DG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.98%.
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
The Earnings Per Share is expected to grow by 9.81% on average over the next years. This is quite good.
DG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y7.11%
EPS Next 2Y8.25%
EPS Next 3Y8.99%
EPS Next 5Y9.81%
Revenue Next Year4.8%
Revenue Next 2Y4.48%
Revenue Next 3Y4.33%
Revenue Next 5Y4.4%
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
The Price/Earnings ratio is 16.38, which indicates a correct valuation of DG.
Based on the Price/Earnings ratio, DG is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.47, DG is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.66, DG is valued correctly.
Based on the Price/Forward Earnings ratio, DG is valued a bit cheaper than 69.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DG to the average of the S&P500 Index (34.42), we can say DG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 14.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DG indicates a somewhat cheap valuation: DG is cheaper than 66.67% of the companies listed in the same industry.
74.36% of the companies in the same industry are more expensive than DG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.1 | ||
| EV/EBITDA | 9.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.3
PEG (5Y)N/A
EPS Next 2Y8.25%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.35%, DG has a reasonable but not impressive dividend return.
DG's Dividend Yield is rather good when compared to the industry average which is at 2.05. DG pays more dividend than 89.74% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, DG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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.
DG has decreased its dividend 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.
DG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.59%
EPS Next 2Y8.25%
EPS Next 3Y8.99%
101.7
+1.41 (+1.41%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.7%
Inst Owner Change1.78%
Ins Owners0.25%
Ins Owner Change0.81%
Market Cap22.39B
Revenue(TTM)41.65B
Net Income(TTM)1.19B
Analysts75.38
Price Target122.56 (20.51%)
Short Float %4.23%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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)-1.42%
PT rev (3m)2.48%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)5.3%
EPS NY rev (1m)0.03%
EPS NY rev (3m)7.22%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 14.66 | ||
| P/S | 0.54 | ||
| P/FCF | 12.1 | ||
| P/OCF | 7.09 | ||
| P/B | 2.79 | ||
| P/tB | 9.05 | ||
| EV/EBITDA | 9.59 |
EPS(TTM)6.21
EY6.11%
EPS(NY)6.94
Fwd EY6.82%
FCF(TTM)8.41
FCFY8.26%
OCF(TTM)14.35
OCFY14.11%
SpS189.23
BVpS36.4
TBVpS11.24
PEG (NY)2.3
PEG (5Y)N/A
Graham Number71.32
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%
ROICexgc growth 3Y-21.19%
ROICexgc 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 | 2.31 |
F-Score7
WACC7.62%
ROIC/WACC0.74
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 Y7.11%
EPS Next 2Y8.25%
EPS Next 3Y8.99%
EPS Next 5Y9.81%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%5.07%
Revenue Next Year4.8%
Revenue Next 2Y4.48%
Revenue Next 3Y4.33%
Revenue Next 5Y4.4%
EBIT growth 1Y-15.15%
EBIT growth 3Y-15.56%
EBIT growth 5Y-3.65%
EBIT Next Year58.45%
EBIT Next 3Y22.47%
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%
DOLLAR GENERAL CORP / DG FAQ
Can you provide the ChartMill fundamental rating for DOLLAR GENERAL CORP?
ChartMill assigns a fundamental rating of 5 / 10 to DG.
What is the valuation status of DOLLAR GENERAL CORP (DG) stock?
ChartMill assigns a valuation rating of 5 / 10 to DOLLAR GENERAL CORP (DG). This can be considered as Fairly Valued.
How profitable is DOLLAR GENERAL CORP (DG) stock?
DOLLAR GENERAL CORP (DG) has a profitability rating of 5 / 10.
What are the PE and PB ratios of DOLLAR GENERAL CORP (DG) stock?
The Price/Earnings (PE) ratio for DOLLAR GENERAL CORP (DG) is 16.38 and the Price/Book (PB) ratio is 2.79.
What is the expected EPS growth for DOLLAR GENERAL CORP (DG) stock?
The Earnings per Share (EPS) of DOLLAR GENERAL CORP (DG) is expected to grow by 7.11% in the next year.