DOLLAR GENERAL CORP (DG)
US2566771059 - Common Stock
DG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
DG had positive earnings in each of the past 5 years.
In the past 5 years DG always reported a positive cash flow from operatings.
1.2 Ratios
DG has a better Return On Assets (4.45%) than 60.98% of its industry peers.
DG's Return On Equity of 19.50% is fine compared to the rest of the industry. DG outperforms 78.05% of its industry peers.
With a Return On Invested Capital value of 6.66%, DG perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DG is in line with the industry average of 9.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 19.5% | ||
| ROIC | 6.66% |
ROA(3y)7.6%
ROA(5y)8.12%
ROE(3y)35.51%
ROE(5y)34.39%
ROIC(3y)10.49%
ROIC(5y)11.04%
1.3 Margins
Looking at the Profit Margin, with a value of 3.57%, DG belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
DG's Profit Margin has declined in the last couple of years.
DG has a better Operating Margin (5.32%) than 87.80% of its industry peers.
In the last couple of years the Operating Margin of DG has declined.
DG has a Gross Margin of 29.67%. This is in the better half of the industry: DG outperforms 78.05% of its industry peers.
DG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.32% | ||
| PM (TTM) | 3.57% | ||
| GM | 29.67% |
OM growth 3Y-15.59%
OM growth 5Y-5.18%
PM growth 3Y-18.28%
PM growth 5Y-7.09%
GM growth 3Y-1.57%
GM growth 5Y-0.11%
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 has been increased compared to 1 year ago.
DG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DG has been reduced compared to a year ago.
2.2 Solvency
DG has an Altman-Z score of 2.06. 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.
With a Altman-Z score value of 2.06, DG is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
The Debt to FCF ratio of DG is 4.14, which is a neutral value as it means it would take DG, 4.14 years of fcf income to pay off all of its debts.
DG's Debt to FCF ratio of 4.14 is fine compared to the rest of the industry. DG outperforms 63.41% of its industry peers.
DG has a Debt/Equity ratio of 0.86. This is a neutral value indicating DG is somewhat dependend on debt financing.
The Debt to Equity ratio of DG (0.86) is worse than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.89
WACC7.48%
2.3 Liquidity
A Current Ratio of 1.22 indicates that DG should not have too much problems paying its short term obligations.
DG has a Current ratio of 1.22. This is in the better half of the industry: DG outperforms 65.85% of its industry peers.
DG has a Quick Ratio of 1.22. 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 0.24 is on the low side compared to the rest of the industry. DG is outperformed by 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The earnings per share for DG have decreased strongly by -34.02% in the last year.
Measured over the past 5 years, DG shows a small growth in Earnings Per Share. The EPS has been growing by 4.63% on average per year.
DG shows a small growth in Revenue. In the last year, the Revenue has grown by 2.24%.
The Revenue has been growing by 8.59% on average over the past years. This is quite good.
EPS 1Y (TTM)-34.02%
EPS 3Y-10.68%
EPS 5Y4.63%
EPS Q2Q%-20.19%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y4.66%
Revenue growth 5Y8.59%
Sales Q2Q%4.23%
3.2 Future
Based on estimates for the next years, DG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.97% on average per year.
DG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.03% yearly.
EPS Next Y-20.43%
EPS Next 2Y-7.33%
EPS Next 3Y-1%
EPS Next 5Y9.97%
Revenue Next Year4.91%
Revenue Next 2Y4.87%
Revenue Next 3Y4.99%
Revenue Next 5Y6.03%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.45, the valuation of DG can be described as very reasonable.
Based on the Price/Earnings ratio, DG is valued cheaply inside the industry as 82.93% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DG to the average of the S&P500 Index (28.65), we can say DG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.36, the valuation of DG can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DG indicates a rather cheap valuation: DG is cheaper than 82.93% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.56. DG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
DG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DG is cheaper than 63.41% of the companies in the same industry.
DG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DG is cheaper than 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.6 | ||
| EV/EBITDA | 7.25 |
4.3 Compensation for Growth
The decent profitability rating of DG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.47
EPS Next 2Y-7.33%
EPS Next 3Y-1%
5. Dividend
5.1 Amount
DG has a Yearly Dividend Yield of 3.06%. Purely for dividend investing, there may be better candidates out there.
The stock price of DG dropped by -40.72% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
DG's Dividend Yield is rather good when compared to the industry average which is at 2.55. DG pays more dividend than 90.24% of the companies in the same industry.
DG's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
On average, the dividend of DG grows each year by 15.30%, which is quite nice.
DG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.3%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DG pays out 36.63% of its income as dividend. This is a sustainable payout ratio.
DG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.63%
EPS Next 2Y-7.33%
EPS Next 3Y-1%
DOLLAR GENERAL CORP
NYSE:DG (11/21/2024, 12:10:08 PM)
73.73
+0.46 (+0.63%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 11.36 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 19.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.32% | ||
| PM (TTM) | 3.57% | ||
| GM | 29.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-34.02%
EPS 3Y-10.68%
EPS 5Y
EPS Q2Q%
EPS Next Y-20.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.24%
Revenue growth 3Y4.66%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y