DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
USA - NYSE:DG - US2566771059 - Common Stock
103.58 USD
-1.93 (-1.83%)
103.869 USD
+0.29 (+0.28%)
Taking everything into account, DG scores 4 out of 10 in our fundamental rating. DG was compared to 39 industry peers in the Consumer Staples Distribution & Retail industry. DG has only an average score on both its financial health and profitability. DG has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years DG has been profitable.
In the past 5 years DG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.76%, DG is in line with its industry, outperforming 53.85% of the companies in the same industry.
DG has a Return On Equity of 14.87%. This is in the better half of the industry: DG outperforms 66.67% of its industry peers.
The Return On Invested Capital of DG (5.61%) is comparable to the rest of the industry.
DG had an Average Return On Invested Capital over the past 3 years of 8.49%. This is in line with the industry average of 8.71%.
| 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 74.36% of the companies in the same industry.
DG's Profit Margin has declined in the last couple of years.
The Operating Margin of DG (4.30%) is better than 79.49% of its industry peers.
In the last couple of years the Operating Margin of DG has declined.
With a decent Gross Margin value of 30.15%, DG is doing good in the industry, outperforming 74.36% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DG is still creating some value.
DG has about the same amout of shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.33 indicates that DG is not a great score, but indicates only limited risk for bankruptcy at the moment.
DG has a Altman-Z score of 2.33. This is in the lower half of the industry: DG underperforms 69.23% of its industry peers.
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.
A Debt/Equity ratio of 0.71 indicates that DG is somewhat dependend on debt financing.
DG has a Debt to Equity ratio (0.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.74
WACC7.58%
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.
DG has a better Current ratio (1.25) than 66.67% of its industry peers.
A Quick Ratio of 0.27 indicates that DG may have some problems paying its short term obligations.
With a Quick ratio value of 0.27, DG is not doing good in the industry: 74.36% of the companies in the same industry are doing better.
| 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.
The Revenue has been growing slightly by 4.98% in the past 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
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.
DG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.26% yearly.
EPS Next Y7.08%
EPS Next 2Y8.25%
EPS Next 3Y8.77%
EPS Next 5Y9.81%
Revenue Next Year4.8%
Revenue Next 2Y4.49%
Revenue Next 3Y4.32%
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.
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
The Price/Earnings ratio is 16.68, which indicates a correct valuation of DG.
DG's Price/Earnings ratio is a bit cheaper when compared to the industry. DG is cheaper than 74.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of DG to the average of the S&P500 Index (27.57), we can say DG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.93, DG is valued correctly.
Based on the Price/Forward Earnings ratio, DG is valued a bit cheaper than 76.92% 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 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 14.93 |
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 64.10% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DG is valued a bit cheaper than the industry average as 79.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.32 | ||
| EV/EBITDA | 9.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DG does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.36
PEG (5Y)N/A
EPS Next 2Y8.25%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.27%, 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 1.94. DG pays more dividend than 89.74% of the companies in the same industry.
DG's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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
43.59% of the earnings are spent on dividend by DG. 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 3Y8.77%
103.58
-1.93 (-1.83%)
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 Change0.09%
Ins Owners0.25%
Ins Owner Change0.82%
Market Cap22.80B
Revenue(TTM)41.65B
Net Income(TTM)1.19B
Analysts75.38
Price Target124.34 (20.04%)
Short Float %4.15%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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)-0.06%
PT rev (3m)5.63%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)5.36%
EPS NY rev (1m)0%
EPS NY rev (3m)7.19%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 14.93 | ||
| P/S | 0.55 | ||
| P/FCF | 12.32 | ||
| P/OCF | 7.22 | ||
| P/B | 2.85 | ||
| P/tB | 9.22 | ||
| EV/EBITDA | 9.89 |
EPS(TTM)6.21
EY6%
EPS(NY)6.94
Fwd EY6.7%
FCF(TTM)8.41
FCFY8.11%
OCF(TTM)14.35
OCFY13.85%
SpS189.23
BVpS36.4
TBVpS11.24
PEG (NY)2.36
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 | 2.33 |
F-Score7
WACC7.58%
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 Y7.08%
EPS Next 2Y8.25%
EPS Next 3Y8.77%
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 2Y4.49%
Revenue Next 3Y4.32%
Revenue Next 5Y4.26%
EBIT growth 1Y-15.15%
EBIT growth 3Y-15.56%
EBIT growth 5Y-3.65%
EBIT Next Year58.45%
EBIT Next 3Y22.22%
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%