DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
USA - NYSE:DG - US2566771059 - Common Stock
95.94 USD
-4.67 (-4.64%)
96.27 USD
+0.33 (+0.34%)
DG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 39 industry peers in the Consumer Staples Distribution & Retail industry. DG has an average financial health and profitability rating. 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.
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
DG has a Return On Assets (3.76%) which is comparable to the rest of the industry.
DG's Return On Equity of 14.87% is fine compared to the rest of the industry. DG outperforms 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.61%, DG is in line with its industry, outperforming 51.28% of the companies in the same 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 8.75%.
| 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
The Profit Margin of DG (2.86%) is better than 74.36% of its industry peers.
DG's Profit Margin has declined in the last couple of years.
DG's Operating Margin of 4.30% is fine compared to the rest of the industry. DG outperforms 76.92% of its industry peers.
DG's Operating Margin has declined in the last couple of years.
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
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 remains at a similar level compared to 1 year ago.
Compared to 5 years ago, DG has less shares outstanding
Compared to 1 year ago, DG has an improved debt to assets ratio.
2.2 Solvency
DG has an Altman-Z score of 2.30. 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.
Looking at the Altman-Z score, with a value of 2.30, DG is doing worse than 69.23% of the companies in the same industry.
The Debt to FCF ratio of DG is 3.11, which is a good value as it means it would take DG, 3.11 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.11, DG is doing good in the industry, outperforming 71.79% of the companies in the same industry.
DG has a Debt/Equity ratio of 0.71. This is a neutral value indicating DG is somewhat dependend on debt financing.
DG's Debt to Equity ratio of 0.71 is in line compared to the rest of the industry. DG outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 2.3 |
ROIC/WACC0.73
WACC7.66%
2.3 Liquidity
A Current Ratio of 1.25 indicates that DG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.25, DG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
DG has a Quick Ratio of 1.25. 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 (0.27) than 74.36% of its industry peers.
| 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.
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 4.98%.
The Revenue has been growing slightly by 7.91% on average over the past years.
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
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 4.26% on average per year.
EPS Next Y7.09%
EPS Next 2Y8.24%
EPS Next 3Y9.31%
EPS Next 5Y9.81%
Revenue Next Year4.8%
Revenue Next 2Y4.48%
Revenue Next 3Y4.53%
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.
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 15.45, which indicates a correct valuation of DG.
Based on the Price/Earnings ratio, DG is valued a bit cheaper than 71.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.13. DG is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.83, DG is valued correctly.
69.23% of the companies in the same industry are more expensive than DG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, DG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 13.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DG.
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 | 11.41 | ||
| EV/EBITDA | 9.5 |
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)2.18
PEG (5Y)N/A
EPS Next 2Y8.24%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.37%, DG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.00, DG pays a better dividend. On top of this DG pays more dividend than 89.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, DG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
The dividend of DG is nicely growing with an annual growth rate of 13.01%!
DG has been paying a dividend for at least 10 years, so it has 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
DG pays out 43.59% 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.
DP43.59%
EPS Next 2Y8.24%
EPS Next 3Y9.31%
95.94
-4.67 (-4.64%)
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 Change0.11%
Ins Owners0.25%
Ins Owner Change0.82%
Market Cap21.12B
Revenue(TTM)41.65B
Net Income(TTM)1.19B
Analysts75.38
Price Target123.32 (28.54%)
Short Float %3.61%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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)-0.88%
PT rev (3m)3.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.82%
EPS NY rev (1m)0%
EPS NY rev (3m)7.19%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 13.83 | ||
| P/S | 0.51 | ||
| P/FCF | 11.41 | ||
| P/OCF | 6.69 | ||
| P/B | 2.64 | ||
| P/tB | 8.54 | ||
| EV/EBITDA | 9.5 |
EPS(TTM)6.21
EY6.47%
EPS(NY)6.94
Fwd EY7.23%
FCF(TTM)8.41
FCFY8.76%
OCF(TTM)14.35
OCFY14.96%
SpS189.23
BVpS36.4
TBVpS11.24
PEG (NY)2.18
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 | 2.3 |
F-Score7
WACC7.66%
ROIC/WACC0.73
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 Y7.09%
EPS Next 2Y8.24%
EPS Next 3Y9.31%
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 2Y4.48%
Revenue Next 3Y4.53%
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%
DOLLAR GENERAL CORP / DG FAQ
Can you provide the ChartMill fundamental rating for DOLLAR GENERAL CORP?
ChartMill assigns a fundamental rating of 4 / 10 to DG.
What is the valuation status of DOLLAR GENERAL CORP (DG) stock?
ChartMill assigns a valuation rating of 4 / 10 to DOLLAR GENERAL CORP (DG). This can be considered as Fairly Valued.
How profitable is DOLLAR GENERAL CORP (DG) stock?
DOLLAR GENERAL CORP (DG) has a profitability rating of 5 / 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 15.45 and the Price/Book (PB) ratio is 2.64.
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 7.09% in the next year.