DOLLAR GENERAL CORP (DG)
US2566771059 - Common Stock
Overall DG gets a fundamental rating of 5 out of 10. We evaluated DG against 43 industry peers in the Consumer Staples Distribution & Retail industry. While DG has a great profitability rating, there are some minor concerns on its financial health. DG scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
Each year in the past 5 years DG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.25%, DG is in line with its industry, outperforming 59.52% of the companies in the same industry.
DG's Return On Equity of 18.19% is fine compared to the rest of the industry. DG outperforms 73.81% of its industry peers.
DG's Return On Invested Capital of 6.40% is in line compared to the rest of the industry. DG outperforms 57.14% of its industry peers.
DG had an Average Return On Invested Capital over the past 3 years of 10.49%. This is above the industry average of 8.42%.
The last Return On Invested Capital (6.40%) for DG is well below the 3 year average (10.49%), which needs to be investigated, but indicates that DG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 18.19% | ||
| ROIC | 6.4% |
ROA(3y)7.6%
ROA(5y)8.12%
ROE(3y)35.51%
ROE(5y)34.39%
ROIC(3y)10.49%
ROIC(5y)11.04%
1.3 Margins
DG has a better Profit Margin (3.33%) than 88.10% of its industry peers.
DG's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.98%, DG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
DG's Operating Margin has declined in the last couple of years.
DG's Gross Margin of 29.61% is fine compared to the rest of the industry. DG outperforms 73.81% 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 | 4.98% | ||
| PM (TTM) | 3.33% | ||
| GM | 29.61% |
OM growth 3Y-15.59%
OM growth 5Y-5.18%
PM growth 3Y-18.28%
PM growth 5Y-7.09%
GM growth 3Y-1.57%
GM growth 5Y-0.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DG is creating some value.
The number of shares outstanding for DG has been increased compared to 1 year ago.
The number of shares outstanding for DG has been reduced compared to 5 years ago.
The debt/assets ratio for DG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.06 indicates that DG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.06, DG is doing worse than 69.05% of the companies in the same industry.
DG has a debt to FCF ratio of 3.79. This is a good value and a sign of high solvency as DG would need 3.79 years to pay back of all of its debts.
DG has a better Debt to FCF ratio (3.79) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that DG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.78, DG is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.83
WACC7.7%
2.3 Liquidity
DG has a Current Ratio of 1.15. 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 (1.15) which is comparable to the rest of the industry.
A Quick Ratio of 0.15 indicates that DG may have some problems paying its short term obligations.
The Quick ratio of DG (0.15) is worse than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
The earnings per share for DG have decreased strongly by -30.15% in the last year.
DG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.63% yearly.
The Revenue has been growing slightly by 2.90% in the past year.
Measured over the past years, DG shows a quite strong growth in Revenue. The Revenue has been growing by 8.59% on average per year.
EPS 1Y (TTM)-30.15%
EPS 3Y-10.68%
EPS 5Y4.63%
EPS Q2Q%-29.37%
Revenue 1Y (TTM)2.9%
Revenue growth 3Y4.66%
Revenue growth 5Y8.59%
Sales Q2Q%5.05%
3.2 Future
Based on estimates for the next years, DG will show a small growth in Earnings Per Share. The EPS will grow by 4.36% on average per year.
Based on estimates for the next years, DG will show a small growth in Revenue. The Revenue will grow by 5.14% on average per year.
EPS Next Y-21.78%
EPS Next 2Y-9.93%
EPS Next 3Y-3.73%
EPS Next 5Y4.36%
Revenue Next Year5.02%
Revenue Next 2Y4.62%
Revenue Next 3Y4.59%
Revenue Next 5Y5.14%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 11.43 indicates a reasonable valuation of DG.
Based on the Price/Earnings ratio, DG is valued cheaper than 88.10% of the companies in the same industry.
When comparing the Price/Earnings ratio of DG to the average of the S&P500 Index (27.28), we can say DG is valued rather cheaply.
DG is valuated reasonably with a Price/Forward Earnings ratio of 11.31.
Based on the Price/Forward Earnings ratio, DG is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.53. DG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 11.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DG is valued a bit cheaper than 71.43% of the companies in the same industry.
90.48% of the companies in the same industry are more expensive than DG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.26 | ||
| EV/EBITDA | 7.13 |
4.3 Compensation for Growth
The decent profitability rating of DG may justify a higher PE ratio.
A cheap valuation may be justified as DG's earnings are expected to decrease with -3.73% in the coming years.
PEG (NY)N/A
PEG (5Y)2.47
EPS Next 2Y-9.93%
EPS Next 3Y-3.73%
5. Dividend
5.1 Amount
DG has a Yearly Dividend Yield of 3.30%. Purely for dividend investing, there may be better candidates out there.
DG's Dividend Yield is rather good when compared to the industry average which is at 2.51. DG pays more dividend than 95.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, DG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
5.2 History
On average, the dividend of DG grows each year by 15.30%, which is quite nice.
DG has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of DG decreased recently.
Dividend Growth(5Y)15.3%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DG pays out 38.84% of its income as dividend. This is a sustainable payout ratio.
DG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.84%
EPS Next 2Y-9.93%
EPS Next 3Y-3.73%
DOLLAR GENERAL CORP
NYSE:DG (1/14/2025, 8:04:00 PM)
After market: 69.49 +0.11 (+0.16%)69.38
-2.21 (-3.09%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.04%
Inst Owner Change-0.09%
Ins Owners0.15%
Ins Owner Change-0.41%
Market Cap15.26B
Analysts71.5
Price Target91.42 (31.77%)
Short Float %4.97%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Dividend Growth(5Y)15.3%
DP38.84%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.75%
Min EPS beat(2)-7.85%
Max EPS beat(2)-7.66%
EPS beat(4)2
Avg EPS beat(4)-2.96%
Min EPS beat(4)-7.85%
Max EPS beat(4)2.25%
EPS beat(8)3
Avg EPS beat(8)-4.06%
EPS beat(12)4
Avg EPS beat(12)-3.85%
EPS beat(16)7
Avg EPS beat(16)-1.67%
Revenue beat(2)0
Avg Revenue beat(2)-3.46%
Min Revenue beat(2)-4.39%
Max Revenue beat(2)-2.54%
Revenue beat(4)0
Avg Revenue beat(4)-2.96%
Min Revenue beat(4)-4.39%
Max Revenue beat(4)-2.17%
Revenue beat(8)0
Avg Revenue beat(8)-3.23%
Revenue beat(12)0
Avg Revenue beat(12)-3.07%
Revenue beat(16)0
Avg Revenue beat(16)-2.81%
PT rev (1m)-4.93%
PT rev (3m)-11.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.76%
EPS NY rev (1m)-1.69%
EPS NY rev (3m)-2.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 11.31 | ||
| P/S | 0.38 | ||
| P/FCF | 9.26 | ||
| P/OCF | 4.85 | ||
| P/B | 2.08 | ||
| P/tB | 8.46 | ||
| EV/EBITDA | 7.13 |
EPS(TTM)6.07
EY8.75%
EPS(NY)6.13
Fwd EY8.84%
FCF(TTM)7.49
FCFY10.8%
OCF(TTM)14.3
OCFY20.61%
SpS182.63
BVpS33.39
TBVpS8.2
PEG (NY)N/A
PEG (5Y)2.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 18.19% | ||
| ROCE | 8.21% | ||
| ROIC | 6.4% | ||
| ROICexc | 6.55% | ||
| ROICexgc | 8.53% | ||
| OM | 4.98% | ||
| PM (TTM) | 3.33% | ||
| GM | 29.61% | ||
| FCFM | 4.1% |
ROA(3y)7.6%
ROA(5y)8.12%
ROE(3y)35.51%
ROE(5y)34.39%
ROIC(3y)10.49%
ROIC(5y)11.04%
ROICexc(3y)10.69%
ROICexc(5y)11.39%
ROICexgc(3y)14.34%
ROICexgc(5y)15.71%
ROCE(3y)13.46%
ROCE(5y)14.17%
ROICexcg growth 3Y-20.25%
ROICexcg growth 5Y-22.27%
ROICexc growth 3Y-18.07%
ROICexc growth 5Y-13.32%
OM growth 3Y-15.59%
OM growth 5Y-5.18%
PM growth 3Y-18.28%
PM growth 5Y-7.09%
GM growth 3Y-1.57%
GM growth 5Y-0.11%
F-Score5
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.79 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 159.05% | ||
| Cap/Sales | 3.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 106.95% | ||
| Profit Quality | 123.38% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | 2.06 |
F-Score5
WACC7.7%
ROIC/WACC0.83
Cap/Depr(3y)194.17%
Cap/Depr(5y)183.4%
Cap/Sales(3y)3.88%
Cap/Sales(5y)3.5%
Profit Quality(3y)44.67%
Profit Quality(5y)65.22%
High Growth Momentum
Growth
EPS 1Y (TTM)-30.15%
EPS 3Y-10.68%
EPS 5Y4.63%
EPS Q2Q%-29.37%
EPS Next Y-21.78%
EPS Next 2Y-9.93%
EPS Next 3Y-3.73%
EPS Next 5Y4.36%
Revenue 1Y (TTM)2.9%
Revenue growth 3Y4.66%
Revenue growth 5Y8.59%
Sales Q2Q%5.05%
Revenue Next Year5.02%
Revenue Next 2Y4.62%
Revenue Next 3Y4.59%
Revenue Next 5Y5.14%
EBIT growth 1Y-28.58%
EBIT growth 3Y-11.66%
EBIT growth 5Y2.96%
EBIT Next Year17.18%
EBIT Next 3Y9.42%
EBIT Next 5Y10.04%
FCF growth 1Y218.16%
FCF growth 3Y-37.61%
FCF growth 5Y-13.27%
OCF growth 1Y66.64%
OCF growth 3Y-14.87%
OCF growth 5Y2.22%