DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DG - US2566771059 - Common Stock
132.77 USD
-3.05 (-2.25%)
132.77 USD
0 (0%)
Taking everything into account, DG scores 5 out of 10 in our fundamental rating. DG was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. DG has an average financial health and profitability rating. DG is valied quite expensively at the moment, while it does show a decent growth rate.
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.
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 (4.03%) which is comparable to the rest of the industry.
DG has a better Return On Equity (15.60%) than 63.16% of its industry peers.
DG has a Return On Invested Capital (6.03%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for DG is significantly below the industry average of 28.32%.
| 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
DG's Profit Margin of 3.03% is fine compared to the rest of the industry. DG outperforms 76.32% of its industry peers.
DG's Profit Margin has declined in the last couple of years.
The Operating Margin of DG (4.49%) is better than 78.95% of its industry peers.
In the last couple of years the Operating Margin of DG has declined.
DG's Gross Margin of 30.41% is amongst the best of the industry. DG outperforms 81.58% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DG is still creating some value.
The number of shares outstanding for DG remains at a similar level compared to 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 2.50. 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's Altman-Z score of 2.50 is on the low side compared to the rest of the industry. DG is outperformed by 65.79% 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.
DG's Debt to FCF ratio of 2.20 is fine compared to the rest of the industry. DG outperforms 76.32% of its industry peers.
DG has a Debt/Equity ratio of 0.63. This is a neutral value indicating DG is somewhat dependend on debt financing.
The Debt to Equity ratio of DG (0.63) is comparable to the rest of the industry.
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 | 2.5 |
ROIC/WACC0.76
WACC7.89%
2.3 Liquidity
DG has a Current Ratio of 1.17. 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 Current ratio (1.17) which is comparable to the rest of the industry.
A Quick Ratio of 0.24 indicates that DG may have some problems paying its short term obligations.
DG has a Quick ratio of 0.24. This is amonst the worse of the industry: DG underperforms 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.
The Revenue has been growing slightly by 4.86% 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)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
DG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.81% yearly.
Based on estimates for the next years, DG will show a small growth in Revenue. The Revenue will grow by 4.40% on average per year.
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
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
DG is valuated rather expensively with a Price/Earnings ratio of 20.12.
DG's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.51. DG is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.09, the valuation of DG can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as DG.
DG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.12 | ||
| Fwd PE | 18.09 |
4.2 Price Multiples
DG's Enterprise Value to EBITDA ratio is in line with the industry average.
DG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DG is cheaper than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.49 | ||
| EV/EBITDA | 11.34 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.58
PEG (5Y)N/A
EPS Next 2Y11.35%
EPS Next 3Y10.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.74%, DG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.78, DG pays a bit more dividend than its industry peers.
DG's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
The dividend of DG is nicely growing with an annual growth rate of 13.01%!
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)13.01%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
40.66% of the earnings are spent on dividend by DG. 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%
132.77
-3.05 (-2.25%)
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 Cap29.22B
Revenue(TTM)42.12B
Net Income(TTM)1.28B
Analysts75.79
Price Target135.48 (2.04%)
Short Float %4.98%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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)10.54%
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 | 20.12 | ||
| Fwd PE | 18.09 | ||
| P/S | 0.69 | ||
| P/FCF | 12.49 | ||
| P/OCF | 8.07 | ||
| P/B | 3.57 | ||
| P/tB | 11.04 | ||
| EV/EBITDA | 11.34 |
EPS(TTM)6.6
EY4.97%
EPS(NY)7.34
Fwd EY5.53%
FCF(TTM)10.63
FCFY8.01%
OCF(TTM)16.45
OCFY12.39%
SpS191.35
BVpS37.19
TBVpS12.03
PEG (NY)1.58
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 | 2.5 |
F-Score7
WACC7.89%
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 Year63.97%
EBIT Next 3Y23.23%
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.
Can you provide the valuation status for DOLLAR GENERAL CORP?
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 5 / 10.
What is the earnings growth outlook for DOLLAR GENERAL CORP?
The Earnings per Share (EPS) of DOLLAR GENERAL CORP (DG) is expected to grow by 12.73% in the next year.
Can you provide the dividend sustainability for DG stock?
The dividend rating of DOLLAR GENERAL CORP (DG) is 5 / 10 and the dividend payout ratio is 40.66%.