DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
USA - NYSE:DG - US2566771059 - Common Stock
104.3 USD
+0.11 (+0.11%)
104.3 USD
0 (0%)
DG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 it does not seem to be growing.
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 has a Return On Assets of 3.76%. This is comparable to the rest of the industry: DG outperforms 51.28% of its industry peers.
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.
With a Return On Invested Capital value of 5.61%, DG perfoms like the industry average, 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 8.72%.
| 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
DG's Profit Margin of 2.86% is fine compared to the rest of the industry. DG outperforms 74.36% of its industry peers.
DG's Profit Margin has declined in the last couple of years.
DG has a better Operating Margin (4.30%) than 76.92% of its industry peers.
In the last couple of years the Operating Margin of DG has declined.
The Gross Margin of DG (30.15%) is better than 74.36% of its industry peers.
In the last couple of years the Gross Margin of DG has remained more or less at the same level.
| 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.
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 2.32. 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 2.32. This is in the lower half of the industry: DG underperforms 66.67% of its industry peers.
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.
DG's Debt to FCF ratio of 3.11 is fine compared to the rest of the industry. DG outperforms 71.79% of its industry peers.
DG has a Debt/Equity ratio of 0.71. This is a neutral value indicating DG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.71, DG perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.73
WACC7.71%
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.
The Current ratio of DG (1.25) is better 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.
DG has a Quick ratio of 0.27. This is in the lower half of the industry: DG underperforms 74.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
DG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.57%.
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%.
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
The Earnings Per Share is expected to grow by 9.81% on average over the next years. This is quite good.
DG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y7.11%
EPS Next 2Y8.25%
EPS Next 3Y9%
EPS Next 5Y9.81%
Revenue Next Year4.8%
Revenue Next 2Y4.48%
Revenue Next 3Y4.33%
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 16.80 indicates a correct valuation of DG.
69.23% of the companies in the same industry are more expensive than DG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DG to the average of the S&P500 Index (25.89), we can say DG is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.03 indicates a correct valuation of DG.
Based on the Price/Forward Earnings ratio, DG is valued a bit cheaper than the industry average as 64.10% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DG to the average of the S&P500 Index (34.59), we can say DG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.8 | ||
| Fwd PE | 15.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DG is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
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 | 12.41 | ||
| EV/EBITDA | 9.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.36
PEG (5Y)N/A
EPS Next 2Y8.25%
EPS Next 3Y9%
5. Dividend
5.1 Amount
DG has a Yearly Dividend Yield of 2.27%.
Compared to an average industry Dividend Yield of 1.98, 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 2.44, DG has a dividend comparable with the average S&P500 company.
| 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.
The dividend of DG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.59%
EPS Next 2Y8.25%
EPS Next 3Y9%
104.3
+0.11 (+0.11%)
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 Change1.59%
Ins Owners0.25%
Ins Owner Change1.04%
Market Cap22.96B
Revenue(TTM)41.65B
Net Income(TTM)1.19B
Analysts75.38
Price Target123.32 (18.24%)
Short Float %3.61%
Short Ratio2.51
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)-0.82%
PT rev (3m)3.11%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)4.82%
EPS NY rev (1m)0.03%
EPS NY rev (3m)7.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.8 | ||
| Fwd PE | 15.03 | ||
| P/S | 0.55 | ||
| P/FCF | 12.41 | ||
| P/OCF | 7.27 | ||
| P/B | 2.87 | ||
| P/tB | 9.28 | ||
| EV/EBITDA | 9.79 |
EPS(TTM)6.21
EY5.95%
EPS(NY)6.94
Fwd EY6.65%
FCF(TTM)8.41
FCFY8.06%
OCF(TTM)14.35
OCFY13.76%
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 | 2.32 |
F-Score7
WACC7.71%
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 Y7.11%
EPS Next 2Y8.25%
EPS Next 3Y9%
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 3Y4.33%
Revenue Next 5Y4.4%
EBIT growth 1Y-15.15%
EBIT growth 3Y-15.56%
EBIT growth 5Y-3.65%
EBIT Next Year58.45%
EBIT Next 3Y22.48%
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 5 / 10 to DG.
What is the valuation status of DOLLAR GENERAL CORP (DG) stock?
ChartMill assigns a valuation rating of 5 / 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 16.8 and the Price/Book (PB) ratio is 2.87.
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 7.11% in the next year.