DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
NYSE:DG - New York Stock Exchange, Inc. - US2566771059 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to DG. DG was compared to 40 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
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.
Each year in the past 5 years DG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DG (3.61%) is comparable to the rest of the industry.
With a decent Return On Equity value of 15.18%, DG is doing good in the industry, outperforming 70.00% of the companies in the same industry.
DG's Return On Invested Capital of 5.53% is in line compared to the rest of the industry. DG outperforms 47.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DG is in line with the industry average of 8.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 15.18% | ||
| ROIC | 5.53% |
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's Profit Margin of 2.77% is fine compared to the rest of the industry. DG outperforms 77.50% of its industry peers.
DG's Profit Margin has declined in the last couple of years.
DG has a Operating Margin of 4.22%. This is in the better half of the industry: DG outperforms 80.00% of its industry peers.
DG's Operating Margin has declined in the last couple of years.
DG has a better Gross Margin (29.59%) than 72.50% of its industry peers.
DG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.22% | ||
| PM (TTM) | 2.77% | ||
| GM | 29.59% |
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
DG has an Altman-Z score of 2.21. 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 Altman-Z score of 2.21. This is in the lower half of the industry: DG underperforms 70.00% of its industry peers.
The Debt to FCF ratio of DG is 3.70, which is a good value as it means it would take DG, 3.70 years of fcf income to pay off all of its debts.
DG's Debt to FCF ratio of 3.70 is fine compared to the rest of the industry. DG outperforms 70.00% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that DG is somewhat dependend on debt financing.
The Debt to Equity ratio of DG (0.77) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.7 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.71
WACC7.76%
2.3 Liquidity
A Current Ratio of 1.19 indicates that DG should not have too much problems paying its short term obligations.
DG has a Current ratio of 1.19. This is comparable to the rest of the industry: DG outperforms 57.50% of its industry peers.
A Quick Ratio of 0.21 indicates that DG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.21, DG is doing worse than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The earnings per share for DG have decreased strongly by -21.69% 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 4.96% in the last year.
The Revenue has been growing slightly by 7.91% on average over the past years.
EPS 1Y (TTM)-21.69%
EPS 3Y-16.48%
EPS 5Y-2.56%
EPS Q2Q%-8.2%
Revenue 1Y (TTM)4.96%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%4.52%
3.2 Future
The Earnings Per Share is expected to grow by 9.02% on average over the next years. This is quite good.
Based on estimates for the next years, DG will show a small growth in Revenue. The Revenue will grow by 4.17% on average per year.
EPS Next Y-3.17%
EPS Next 2Y2.87%
EPS Next 3Y6.34%
EPS Next 5Y9.02%
Revenue Next Year3.84%
Revenue Next 2Y3.95%
Revenue Next 3Y4.15%
Revenue Next 5Y4.17%
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 15.72, which indicates a correct valuation of DG.
Compared to the rest of the industry, the Price/Earnings ratio of DG indicates a somewhat cheap valuation: DG is cheaper than 72.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. DG is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.24, DG is valued correctly.
67.50% of the companies in the same industry are more expensive than DG, based on the Price/Forward Earnings ratio.
DG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 16.24 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than DG, based on the Enterprise Value to EBITDA ratio.
DG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DG is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.14 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.87%
EPS Next 3Y6.34%
5. Dividend
5.1 Amount
DG has a Yearly Dividend Yield of 2.71%.
DG's Dividend Yield is rather good when compared to the industry average which is at 2.36. DG pays more dividend than 85.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.57, DG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
The dividend of DG is nicely growing with an annual growth rate of 13.03%!
DG has paid a dividend for at least 10 years, which is a reliable track record.
DG has decreased its dividend recently.
Dividend Growth(5Y)13.03%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DG pays out 46.12% 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.
DP46.12%
EPS Next 2Y2.87%
EPS Next 3Y6.34%
93.07
+3.71 (+4.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.15%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner Change21.49%
Market Cap20.47B
Analysts72
Price Target87.66 (-5.81%)
Short Float %4.85%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend2.36
Dividend Growth(5Y)13.03%
DP46.12%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.3%
Min EPS beat(2)-7.78%
Max EPS beat(2)8.39%
EPS beat(4)2
Avg EPS beat(4)-1.2%
Min EPS beat(4)-7.78%
Max EPS beat(4)8.39%
EPS beat(8)4
Avg EPS beat(8)-2.62%
EPS beat(12)5
Avg EPS beat(12)-2.92%
EPS beat(16)8
Avg EPS beat(16)-0.73%
Revenue beat(2)0
Avg Revenue beat(2)-2.54%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)-2.53%
Revenue beat(4)0
Avg Revenue beat(4)-3.05%
Min Revenue beat(4)-4.39%
Max Revenue beat(4)-2.53%
Revenue beat(8)0
Avg Revenue beat(8)-3.13%
Revenue beat(12)0
Avg Revenue beat(12)-2.99%
Revenue beat(16)0
Avg Revenue beat(16)-2.87%
PT rev (1m)-0.97%
PT rev (3m)-4.12%
EPS NQ rev (1m)-8.41%
EPS NQ rev (3m)-14.57%
EPS NY rev (1m)-5.76%
EPS NY rev (3m)-6.53%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 16.24 | ||
| P/S | 0.5 | ||
| P/FCF | 12.14 | ||
| P/OCF | 6.83 | ||
| P/B | 2.76 | ||
| P/tB | 10.92 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)5.92
EY6.36%
EPS(NY)5.73
Fwd EY6.16%
FCF(TTM)7.67
FCFY8.24%
OCF(TTM)13.62
OCFY14.64%
SpS184.64
BVpS33.71
TBVpS8.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 15.18% | ||
| ROCE | 7.06% | ||
| ROIC | 5.53% | ||
| ROICexc | 5.75% | ||
| ROICexgc | 7.54% | ||
| OM | 4.22% | ||
| PM (TTM) | 2.77% | ||
| GM | 29.59% | ||
| FCFM | 4.15% |
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)14.56%
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-Score5
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.7 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 134.8% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 5.09 | ||
| Cash Conversion | 111.55% | ||
| Profit Quality | 149.85% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 2.21 |
F-Score5
WACC7.76%
ROIC/WACC0.71
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)-21.69%
EPS 3Y-16.48%
EPS 5Y-2.56%
EPS Q2Q%-8.2%
EPS Next Y-3.17%
EPS Next 2Y2.87%
EPS Next 3Y6.34%
EPS Next 5Y9.02%
Revenue 1Y (TTM)4.96%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%4.52%
Revenue Next Year3.84%
Revenue Next 2Y3.95%
Revenue Next 3Y4.15%
Revenue Next 5Y4.17%
EBIT growth 1Y-29.93%
EBIT growth 3Y-15.56%
EBIT growth 5Y-3.65%
EBIT Next Year51.21%
EBIT Next 3Y20.52%
EBIT Next 5Y16.03%
FCF growth 1Y143.82%
FCF growth 3Y-2.07%
FCF growth 5Y3.02%
OCF growth 1Y25.26%
OCF growth 3Y1.49%
OCF growth 5Y6.01%