DOLLAR GENERAL CORP (7DG.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:7DG - US2566771059 - Common Stock
119.28 EUR
-2.32 (-1.91%)
Overall 7DG gets a fundamental rating of 5 out of 10. We evaluated 7DG against 24 industry peers in the Consumer Staples Distribution & Retail industry. 7DG has an average financial health and profitability rating. 7DG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 7DG was profitable.
- In the past year 7DG had a positive cash flow from operations.
- In the past 5 years 7DG has always been profitable.
- 7DG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 7DG has a Return On Assets (4.03%) which is in line with its industry peers.
- Looking at the Return On Equity, with a value of 15.60%, 7DG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- 7DG has a Return On Invested Capital of 6.03%. This is comparable to the rest of the industry: 7DG outperforms 45.83% of its industry peers.
- 7DG had an Average Return On Invested Capital over the past 3 years of 8.49%. This is in line with the industry average of 9.20%.
| 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
- With an excellent Profit Margin value of 3.03%, 7DG belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- 7DG's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 4.49%, 7DG belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- In the last couple of years the Operating Margin of 7DG has declined.
- 7DG has a Gross Margin of 30.41%. This is amongst the best in the industry. 7DG outperforms 83.33% of its industry peers.
- 7DG'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
- 7DG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, 7DG has about the same amount of shares outstanding.
- 7DG has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for 7DG has been reduced compared to a year ago.
2.2 Solvency
- 7DG has an Altman-Z score of 2.57. This is not the best score and indicates that 7DG is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.57, 7DG is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- The Debt to FCF ratio of 7DG is 2.20, which is a good value as it means it would take 7DG, 2.20 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.20, 7DG belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- A Debt/Equity ratio of 0.63 indicates that 7DG is somewhat dependend on debt financing.
- 7DG has a better Debt to Equity ratio (0.63) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.2 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.76
WACC7.91%
2.3 Liquidity
- A Current Ratio of 1.17 indicates that 7DG should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.17, 7DG is doing good in the industry, outperforming 79.17% of the companies in the same industry.
- A Quick Ratio of 0.24 indicates that 7DG may have some problems paying its short term obligations.
- 7DG has a worse Quick ratio (0.24) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.73% over the past year.
- 7DG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.56% yearly.
- 7DG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.86%.
- The Revenue has been growing slightly by 7.91% on average over the past years.
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
- 7DG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.15% yearly.
- The Revenue is expected to grow by 4.53% on average over the next years.
EPS Next Y13.07%
EPS Next 2Y11.52%
EPS Next 3Y11.08%
EPS Next 5Y11.15%
Revenue Next Year4.95%
Revenue Next 2Y4.56%
Revenue Next 3Y4.45%
Revenue Next 5Y4.53%
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
- The Price/Earnings ratio is 21.65, which indicates a rather expensive current valuation of 7DG.
- Based on the Price/Earnings ratio, 7DG is valued a bit more expensive than 62.50% of the companies in the same industry.
- 7DG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.39.
- A Price/Forward Earnings ratio of 19.40 indicates a rather expensive valuation of 7DG.
- 7DG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 7DG is more expensive than 70.83% of the companies in the same industry.
- 7DG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 19.4 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 7DG indicates a slightly more expensive valuation: 7DG is more expensive than 62.50% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 7DG indicates a somewhat cheap valuation: 7DG is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.44 | ||
| EV/EBITDA | 12.3 |
4.3 Compensation for Growth
- 7DG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of 7DG may justify a higher PE ratio.
PEG (NY)1.66
PEG (5Y)N/A
EPS Next 2Y11.52%
EPS Next 3Y11.08%
5. Dividend
5.1 Amount
- 7DG has a Yearly Dividend Yield of 1.63%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.82, 7DG is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, 7DG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
- The dividend of 7DG is nicely growing with an annual growth rate of 13.01%!
Dividend Growth(5Y)13.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 40.66% of the earnings are spent on dividend by 7DG. This is a bit on the high side, but may be sustainable.
- 7DG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.66%
EPS Next 2Y11.52%
EPS Next 3Y11.08%
DOLLAR GENERAL CORP / 7DG.DE FAQ
What is the ChartMill fundamental rating of DOLLAR GENERAL CORP (7DG.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 7DG.DE.
What is the valuation status of DOLLAR GENERAL CORP (7DG.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to DOLLAR GENERAL CORP (7DG.DE). This can be considered as Overvalued.
Can you provide the profitability details for DOLLAR GENERAL CORP?
DOLLAR GENERAL CORP (7DG.DE) has a profitability rating of 6 / 10.
Can you provide the financial health for 7DG stock?
The financial health rating of DOLLAR GENERAL CORP (7DG.DE) is 5 / 10.
What is the expected EPS growth for DOLLAR GENERAL CORP (7DG.DE) stock?
The Earnings per Share (EPS) of DOLLAR GENERAL CORP (7DG.DE) is expected to grow by 13.07% in the next year.