DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DG - US2566771059 - Common Stock
132.37 USD
+7.08 (+5.65%)
132.55 USD
+0.18 (+0.14%)
Overall DG gets a fundamental rating of 5 out of 10. We evaluated DG against 39 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of DG get a neutral evaluation. Nothing too spectacular is happening here. DG 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 DG was profitable.
DG had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 3.76%, DG is in line with its industry, outperforming 48.72% of the companies in the same industry.
The Return On Equity of DG (14.87%) is better than 61.54% 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 8.83%.
| 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 has a better Profit Margin (2.86%) than 71.79% of its industry peers.
In the last couple of years the Profit Margin of DG has declined.
Looking at the Operating Margin, with a value of 4.30%, DG is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
DG's Operating Margin has declined in the last couple of years.
DG has a Gross Margin of 30.15%. This is in the better half of the industry: DG outperforms 76.92% of its industry peers.
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.
DG has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for DG has been reduced compared to 5 years ago.
Compared to 1 year ago, DG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.48 indicates that DG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.48, DG is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
DG has a debt to FCF ratio of 3.11. This is a good value and a sign of high solvency as DG would need 3.11 years to pay back of all of its debts.
The Debt to FCF ratio of DG (3.11) is better than 69.23% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that 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 | 2.48 |
ROIC/WACC0.71
WACC7.89%
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.
A Quick Ratio of 0.27 indicates that DG may have some problems paying its short term obligations.
With a Quick ratio value of 0.27, DG is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
DG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.73%, which is quite good.
Measured over the past years, DG shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.56% on average per year.
Looking at the last year, DG shows a small growth in Revenue. The Revenue has grown by 4.96% in the last year.
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)8.73%
EPS 3Y-16.48%
EPS 5Y-2.56%
EPS Q2Q%43.82%
Revenue 1Y (TTM)4.96%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%4.58%
3.2 Future
Based on estimates for the next years, DG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.81% on average per year.
DG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y7.32%
EPS Next 2Y8.34%
EPS Next 3Y9.19%
EPS Next 5Y9.81%
Revenue Next Year4.8%
Revenue Next 2Y4.48%
Revenue Next 3Y4.52%
Revenue Next 5Y4.4%
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
Based on the Price/Earnings ratio of 20.06, the valuation of DG can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as DG.
DG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.49.
Based on the Price/Forward Earnings ratio of 19.05, the valuation of DG can be described as rather expensive.
DG's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, DG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 19.05 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DG.
DG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DG is cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.75 | ||
| EV/EBITDA | 12 |
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)2.74
PEG (5Y)N/A
EPS Next 2Y8.34%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.88%, DG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.00, DG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, DG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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.
DG has decreased its dividend 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 2Y8.34%
EPS Next 3Y9.19%
132.37
+7.08 (+5.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.55%
Inst Owner Change1.84%
Ins Owners0.24%
Ins Owner Change-0.4%
Market Cap29.14B
Revenue(TTM)40.61B
Net Income(TTM)1.19B
Analysts75.79
Price Target128.68 (-2.79%)
Short Float %5.31%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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)4.35%
PT rev (3m)3.73%
EPS NQ rev (1m)1.18%
EPS NQ rev (3m)1.68%
EPS NY rev (1m)0.19%
EPS NY rev (3m)7.37%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 19.05 | ||
| P/S | 0.7 | ||
| P/FCF | 15.75 | ||
| P/OCF | 9.23 | ||
| P/B | 3.64 | ||
| P/tB | 11.78 | ||
| EV/EBITDA | 12 |
EPS(TTM)6.6
EY4.99%
EPS(NY)6.95
Fwd EY5.25%
FCF(TTM)8.41
FCFY6.35%
OCF(TTM)14.35
OCFY10.84%
SpS189.23
BVpS36.4
TBVpS11.24
PEG (NY)2.74
PEG (5Y)N/A
Graham Number73.52
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 | 2.48 |
F-Score7
WACC7.89%
ROIC/WACC0.71
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)8.73%
EPS 3Y-16.48%
EPS 5Y-2.56%
EPS Q2Q%43.82%
EPS Next Y7.32%
EPS Next 2Y8.34%
EPS Next 3Y9.19%
EPS Next 5Y9.81%
Revenue 1Y (TTM)4.96%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%4.58%
Revenue Next Year4.8%
Revenue Next 2Y4.48%
Revenue Next 3Y4.52%
Revenue Next 5Y4.4%
EBIT growth 1Y-15.15%
EBIT growth 3Y-15.56%
EBIT growth 5Y-3.65%
EBIT Next Year60.73%
EBIT Next 3Y22.81%
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 3 / 10 to DOLLAR GENERAL CORP (DG). This can be considered as Overvalued.
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 20.06 and the Price/Book (PB) ratio is 3.64.
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 7.32% in the next year.