DOLLAR GENERAL CORP (1DGX.MI) Stock Fundamental Analysis
BIT:1DGX - Euronext Milan - US2566771059 - Common Stock - Currency: EUR
Overall 1DGX gets a fundamental rating of 4 out of 10. We evaluated 1DGX against 26 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of 1DGX get a neutral evaluation. Nothing too spectacular is happening here. 1DGX does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
1DGX had positive earnings in the past year.
In the past year 1DGX had a positive cash flow from operations.
In the past 5 years 1DGX has always been profitable.
In the past 5 years 1DGX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.61%, 1DGX is in line with its industry, outperforming 53.85% of the companies in the same industry.
1DGX's Return On Equity of 15.18% is fine compared to the rest of the industry. 1DGX outperforms 65.38% of its industry peers.
1DGX's Return On Invested Capital of 5.53% is on the low side compared to the rest of the industry. 1DGX is outperformed by 61.54% of its industry peers.
1DGX had an Average Return On Invested Capital over the past 3 years of 8.49%. This is in line with the industry average of 9.64%.
| 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
The Profit Margin of 1DGX (2.77%) is better than 76.92% of its industry peers.
In the last couple of years the Profit Margin of 1DGX has declined.
With a decent Operating Margin value of 4.22%, 1DGX is doing good in the industry, outperforming 73.08% of the companies in the same industry.
In the last couple of years the Operating Margin of 1DGX has declined.
1DGX has a better Gross Margin (29.59%) than 84.62% of its industry peers.
1DGX'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
1DGX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, 1DGX has about the same amount of shares outstanding.
Compared to 5 years ago, 1DGX has less shares outstanding
Compared to 1 year ago, 1DGX has an improved debt to assets ratio.
2.2 Solvency
1DGX has an Altman-Z score of 2.25. This is not the best score and indicates that 1DGX is in the grey zone with still only limited risk for bankruptcy at the moment.
1DGX has a Altman-Z score of 2.25. This is in the lower half of the industry: 1DGX underperforms 76.92% of its industry peers.
The Debt to FCF ratio of 1DGX is 3.70, which is a good value as it means it would take 1DGX, 3.70 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.70, 1DGX belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that 1DGX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, 1DGX is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.7 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.42
WACC13.25%
2.3 Liquidity
A Current Ratio of 1.19 indicates that 1DGX should not have too much problems paying its short term obligations.
1DGX's Current ratio of 1.19 is fine compared to the rest of the industry. 1DGX outperforms 73.08% of its industry peers.
A Quick Ratio of 0.21 indicates that 1DGX may have some problems paying its short term obligations.
1DGX has a Quick ratio of 0.21. This is amonst the worse of the industry: 1DGX underperforms 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
1DGX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.69%.
Measured over the past years, 1DGX shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.56% on average per year.
The Revenue has been growing slightly by 4.96% in the past 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
1DGX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.02% yearly.
The Revenue is expected to grow by 4.17% on average over the next years.
EPS Next Y-3.24%
EPS Next 2Y3.53%
EPS Next 3Y6.75%
EPS Next 5Y9.02%
Revenue Next Year3.96%
Revenue Next 2Y4.01%
Revenue Next 3Y4.2%
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 17.09, which indicates a rather expensive current valuation of 1DGX.
1DGX's Price/Earnings ratio is in line with the industry average.
1DGX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.25.
Based on the Price/Forward Earnings ratio of 17.66, the valuation of 1DGX can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1DGX indicates a slightly more expensive valuation: 1DGX is more expensive than 73.08% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.15. 1DGX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 17.66 |
4.2 Price Multiples
1DGX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1DGX is valued a bit cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.2 | ||
| EV/EBITDA | 10.26 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.53%
EPS Next 3Y6.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.43%, 1DGX has a reasonable but not impressive dividend return.
1DGX's Dividend Yield is slightly below the industry average, which is at 3.72.
1DGX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
The dividend of 1DGX is nicely growing with an annual growth rate of 13.03%!
Dividend Growth(5Y)13.03%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1DGX pays out 46.12% of its income as dividend. This is a bit on the high side, but may be sustainable.
1DGX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.12%
EPS Next 2Y3.53%
EPS Next 3Y6.75%
BIT:1DGX (5/23/2025, 7:00:00 PM)
89.22
+8.75 (+10.87%)
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 ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap19.62B
Analysts73
Price Target80.36 (-9.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend2.08
Dividend Growth(5Y)13.03%
DP46.12%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-12.78%
PT rev (3m)-12.78%
EPS NQ rev (1m)-13.46%
EPS NQ rev (3m)-13.46%
EPS NY rev (1m)-6.6%
EPS NY rev (3m)-6.6%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 17.66 | ||
| P/S | 0.55 | ||
| P/FCF | 13.2 | ||
| P/OCF | 7.43 | ||
| P/B | 3 | ||
| P/tB | 11.86 | ||
| EV/EBITDA | 10.26 |
EPS(TTM)5.22
EY5.85%
EPS(NY)5.05
Fwd EY5.66%
FCF(TTM)6.76
FCFY7.58%
OCF(TTM)12.01
OCFY13.46%
SpS162.84
BVpS29.73
TBVpS7.52
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 | 2.25 |
F-Score5
WACC13.25%
ROIC/WACC0.42
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-3.24%
EPS Next 2Y3.53%
EPS Next 3Y6.75%
EPS Next 5Y9.02%
Revenue 1Y (TTM)4.96%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%4.52%
Revenue Next Year3.96%
Revenue Next 2Y4.01%
Revenue Next 3Y4.2%
Revenue Next 5Y4.17%
EBIT growth 1Y-29.93%
EBIT growth 3Y-15.56%
EBIT growth 5Y-3.65%
EBIT Next Year51.57%
EBIT Next 3Y20.62%
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%