DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
USA - NYSE:DG - US2566771059 - Common Stock
105.74 USD
+1.86 (+1.79%)
105.432 USD
-0.31 (-0.29%)
Taking everything into account, DG scores 4 out of 10 in our fundamental rating. DG was compared to 39 industry peers in the Consumer Staples Distribution & Retail industry. DG has an average financial health and profitability rating. DG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year DG was profitable.
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
The Return On Assets of DG (3.76%) is comparable to the rest of the industry.
With a decent Return On Equity value of 14.87%, DG is doing good in the industry, outperforming 64.10% of the companies in the same industry.
DG has a Return On Invested Capital (5.61%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for DG is in line with the industry average of 8.75%.
| 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 71.79% of its industry peers.
In the last couple of years the Profit Margin of DG has declined.
DG has a Operating Margin of 4.30%. This is in the better half of the industry: DG outperforms 79.49% of its industry peers.
In the last couple of years the Operating Margin of DG has declined.
DG has a Gross Margin of 30.15%. This is in the better half of the industry: DG outperforms 74.36% 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.
Compared to 1 year ago, DG has about the same amount of shares outstanding.
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
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 69.23% 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 has a Debt to FCF ratio of 3.11. This is in the better half 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.
Looking at the Debt to Equity ratio, with a value of 0.71, DG is in line with its industry, outperforming 43.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.74
WACC7.6%
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 64.10% of the companies in the same industry.
DG has a Quick Ratio of 1.25. This is a bad value and indicates that DG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.27, DG is doing worse than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The earnings per share for DG have decreased by -3.57% in the last year.
The Earnings Per Share has been decreasing by -2.56% on average over the past years.
The Revenue has been growing slightly by 4.98% in the past year.
The Revenue has been growing slightly by 7.91% on average over the past years.
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
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.
The Revenue is expected to grow by 4.26% on average over the next years.
EPS Next Y7.08%
EPS Next 2Y8.25%
EPS Next 3Y8.77%
EPS Next 5Y9.81%
Revenue Next Year4.8%
Revenue Next 2Y4.49%
Revenue Next 3Y4.32%
Revenue Next 5Y4.26%
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
DG is valuated rather expensively with a Price/Earnings ratio of 17.03.
Based on the Price/Earnings ratio, DG is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
DG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
DG is valuated correctly with a Price/Forward Earnings ratio of 15.24.
Based on the Price/Forward Earnings ratio, DG is valued a bit cheaper than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, DG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 15.24 |
4.2 Price Multiples
DG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DG is cheaper than 64.10% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DG indicates a somewhat cheap valuation: DG is cheaper than 79.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.58 | ||
| EV/EBITDA | 9.76 |
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)2.4
PEG (5Y)N/A
EPS Next 2Y8.25%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
DG has a Yearly Dividend Yield of 2.39%.
DG's Dividend Yield is rather good when compared to the industry average which is at 2.00. DG pays more dividend than 89.74% of the companies in the same industry.
DG's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
On average, the dividend of DG grows each year by 13.01%, 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)13.01%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DG pays out 43.59% of its income as dividend. 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 3Y8.77%
105.74
+1.86 (+1.79%)
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 Change0.05%
Ins Owners0.25%
Ins Owner Change0.82%
Market Cap23.27B
Analysts75.38
Price Target124.34 (17.59%)
Short Float %4.15%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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)0.23%
PT rev (3m)5.63%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)5.42%
EPS NY rev (1m)7.13%
EPS NY rev (3m)7.14%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 15.24 | ||
| P/S | 0.56 | ||
| P/FCF | 12.58 | ||
| P/OCF | 7.37 | ||
| P/B | 2.9 | ||
| P/tB | 9.41 | ||
| EV/EBITDA | 9.76 |
EPS(TTM)6.21
EY5.87%
EPS(NY)6.94
Fwd EY6.56%
FCF(TTM)8.41
FCFY7.95%
OCF(TTM)14.35
OCFY13.57%
SpS189.23
BVpS36.4
TBVpS11.24
PEG (NY)2.4
PEG (5Y)N/A
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%
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-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
WACC7.6%
ROIC/WACC0.74
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 Y7.08%
EPS Next 2Y8.25%
EPS Next 3Y8.77%
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 2Y4.49%
Revenue Next 3Y4.32%
Revenue Next 5Y4.26%
EBIT growth 1Y-15.15%
EBIT growth 3Y-15.56%
EBIT growth 5Y-3.65%
EBIT Next Year58.45%
EBIT Next 3Y22.22%
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%