DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DG - US2566771059 - Common Stock
137.28 USD
+0.6 (+0.44%)
136.96 USD
-0.32 (-0.23%)
DG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 38 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DG had positive earnings in the past year.
In the past year DG had a positive cash flow from operations.
DG had positive earnings in each of the past 5 years.
DG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DG's Return On Assets of 4.03% is in line compared to the rest of the industry. DG outperforms 57.89% of its industry peers.
The Return On Equity of DG (15.60%) is better than 65.79% of its industry peers.
DG has a Return On Invested Capital (6.03%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for DG is in line with the industry average of 8.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 15.6% | ||
| ROIC | 6.03% |
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
Looking at the Profit Margin, with a value of 3.03%, DG is in the better half of the industry, outperforming 76.32% 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 (4.49%) than 81.58% of its industry peers.
DG's Operating Margin has declined in the last couple of years.
DG's Gross Margin of 30.41% is fine compared to the rest of the industry. DG outperforms 78.95% of its industry peers.
DG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.49% | ||
| PM (TTM) | 3.03% | ||
| GM | 30.41% |
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.
Compared to 1 year ago, DG has about the same amount of shares outstanding.
The number of shares outstanding for DG has been reduced compared to 5 years ago.
Compared to 1 year ago, DG has an improved debt to assets ratio.
2.2 Solvency
DG has an Altman-Z score of 2.52. 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.
DG has a worse Altman-Z score (2.52) than 63.16% of its industry peers.
The Debt to FCF ratio of DG is 2.20, which is a good value as it means it would take DG, 2.20 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.20, DG is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
DG has a Debt/Equity ratio of 0.63. This is a neutral value indicating DG is somewhat dependend on debt financing.
DG's Debt to Equity ratio of 0.63 is in line compared to the rest of the industry. DG outperforms 47.37% of its industry peers.
Although DG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.2 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.76
WACC7.93%
2.3 Liquidity
A Current Ratio of 1.17 indicates that DG should not have too much problems paying its short term obligations.
DG has a better Current ratio (1.17) than 60.53% of its industry peers.
DG has a Quick Ratio of 1.17. 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 has a worse Quick ratio (0.24) than 81.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
DG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.73%, which is quite good.
DG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.56% yearly.
DG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.86%.
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)8.73%
EPS 3Y-16.48%
EPS 5Y-2.56%
EPS Q2Q%43.82%
Revenue 1Y (TTM)4.86%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%4.58%
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 9.81% on average per year.
The Revenue is expected to grow by 4.40% on average over the next years.
EPS Next Y12.73%
EPS Next 2Y11.35%
EPS Next 3Y10.76%
EPS Next 5Y9.81%
Revenue Next Year4.92%
Revenue Next 2Y4.55%
Revenue Next 3Y4.42%
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
A Price/Earnings ratio of 20.80 indicates a rather expensive valuation of DG.
The rest of the industry has a similar Price/Earnings ratio as DG.
The average S&P500 Price/Earnings ratio is at 26.39. DG is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.70, which indicates a rather expensive current valuation of DG.
The rest of the industry has a similar Price/Forward Earnings ratio as DG.
When comparing the Price/Forward Earnings ratio of DG to the average of the S&P500 Index (23.84), we can say DG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 18.7 |
4.2 Price Multiples
DG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, DG is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.92 | ||
| EV/EBITDA | 11.68 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.63
PEG (5Y)N/A
EPS Next 2Y11.35%
EPS Next 3Y10.76%
5. Dividend
5.1 Amount
DG has a Yearly Dividend Yield of 1.73%. Purely for dividend investing, there may be better candidates out there.
DG's Dividend Yield is a higher than the industry average which is at 0.77.
Compared to an average S&P500 Dividend Yield of 1.87, DG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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 40.66% 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.
DP40.66%
EPS Next 2Y11.35%
EPS Next 3Y10.76%
137.28
+0.6 (+0.44%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.55%
Inst Owner Change1.71%
Ins Owners0.24%
Ins Owner Change0.32%
Market Cap30.22B
Revenue(TTM)42.12B
Net Income(TTM)1.28B
Analysts75.79
Price Target135.48 (-1.31%)
Short Float %5.63%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend2.36
Dividend Growth(5Y)13.01%
DP40.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.32%
Min EPS beat(2)15.21%
Max EPS beat(2)31.44%
EPS beat(4)4
Avg EPS beat(4)17.91%
Min EPS beat(4)8.39%
Max EPS beat(4)31.44%
EPS beat(8)6
Avg EPS beat(8)7.48%
EPS beat(12)7
Avg EPS beat(12)3.27%
EPS beat(16)8
Avg EPS beat(16)1.59%
Revenue beat(2)0
Avg Revenue beat(2)-2.68%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)-2.54%
Revenue beat(4)0
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-2.82%
Max Revenue beat(4)-1.73%
Revenue beat(8)0
Avg Revenue beat(8)-2.68%
Revenue beat(12)0
Avg Revenue beat(12)-2.95%
Revenue beat(16)0
Avg Revenue beat(16)-2.9%
PT rev (1m)9.86%
PT rev (3m)8.9%
EPS NQ rev (1m)-0.84%
EPS NQ rev (3m)-0.66%
EPS NY rev (1m)5.25%
EPS NY rev (3m)5.28%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 18.7 | ||
| P/S | 0.72 | ||
| P/FCF | 12.92 | ||
| P/OCF | 8.35 | ||
| P/B | 3.69 | ||
| P/tB | 11.41 | ||
| EV/EBITDA | 11.68 |
EPS(TTM)6.6
EY4.81%
EPS(NY)7.34
Fwd EY5.35%
FCF(TTM)10.63
FCFY7.74%
OCF(TTM)16.45
OCFY11.98%
SpS191.35
BVpS37.19
TBVpS12.03
PEG (NY)1.63
PEG (5Y)N/A
Graham Number74.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 15.6% | ||
| ROCE | 7.7% | ||
| ROIC | 6.03% | ||
| ROICexc | 6.35% | ||
| ROICexgc | 8.32% | ||
| OM | 4.49% | ||
| PM (TTM) | 3.03% | ||
| GM | 30.41% | ||
| FCFM | 5.55% |
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 Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.2 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 124.35% | ||
| Cap/Sales | 3.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 123.91% | ||
| Profit Quality | 183.17% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 2.52 |
F-Score7
WACC7.93%
ROIC/WACC0.76
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)8.73%
EPS 3Y-16.48%
EPS 5Y-2.56%
EPS Q2Q%43.82%
EPS Next Y12.73%
EPS Next 2Y11.35%
EPS Next 3Y10.76%
EPS Next 5Y9.81%
Revenue 1Y (TTM)4.86%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%4.58%
Revenue Next Year4.92%
Revenue Next 2Y4.55%
Revenue Next 3Y4.42%
Revenue Next 5Y4.4%
EBIT growth 1Y-5.4%
EBIT growth 3Y-15.56%
EBIT growth 5Y-3.65%
EBIT Next Year60.73%
EBIT Next 3Y22.81%
EBIT Next 5Y16.3%
FCF growth 1Y413.6%
FCF growth 3Y-2.07%
FCF growth 5Y3.02%
OCF growth 1Y66.17%
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 3 / 10 to DOLLAR GENERAL CORP (DG). This can be considered as Overvalued.
How profitable is DOLLAR GENERAL CORP (DG) stock?
DOLLAR GENERAL CORP (DG) has a profitability rating of 6 / 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 20.8 and the Price/Book (PB) ratio is 3.69.
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 12.73% in the next year.