DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
USA - NYSE:DG - US2566771059 - Common Stock
99.22 USD
+3.28 (+3.42%)
99.45 USD
+0.23 (+0.23%)
Overall DG gets a fundamental rating of 4 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
DG had positive earnings in the past year.
DG had a positive operating cash flow in the past year.
Each year in the past 5 years DG has been profitable.
Each year in the past 5 years DG had a positive operating cash flow.
1.2 Ratios
DG's Return On Assets of 3.76% is in line compared to the rest of the industry. DG outperforms 51.28% of its industry peers.
Looking at the Return On Equity, with a value of 14.87%, DG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
DG's Return On Invested Capital of 5.61% is in line compared to the rest of the industry. DG outperforms 51.28% of its industry peers.
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 8.75%.
| 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
The Profit Margin of DG (2.86%) is better than 74.36% of its industry peers.
In the last couple of years the Profit Margin of DG has declined.
DG's Operating Margin of 4.30% is fine compared to the rest of the industry. DG outperforms 76.92% of its industry peers.
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 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.
DG has about the same amout of shares outstanding than it did 1 year ago.
DG has less shares outstanding than it did 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 2.30. 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 worse Altman-Z score (2.30) than 69.23% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.11, DG is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
A Debt/Equity ratio of 0.71 indicates that DG is somewhat dependend on debt financing.
DG has a Debt to Equity ratio (0.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 2.3 |
ROIC/WACC0.73
WACC7.64%
2.3 Liquidity
DG has a Current Ratio of 1.25. 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 better Current ratio (1.25) than 66.67% of its industry peers.
A Quick Ratio of 0.27 indicates that DG may have some problems paying its short term obligations.
DG's Quick ratio of 0.27 is on the low side compared to the rest of the industry. DG is outperformed by 74.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
DG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.57%.
DG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.56% yearly.
The Revenue has been growing slightly by 4.98% in the past year.
DG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.91% yearly.
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
The Earnings Per Share is expected to grow by 9.81% on average over the next years. This is quite good.
Based on estimates for the next years, DG will show a small growth in Revenue. The Revenue will grow by 4.40% on average per year.
EPS Next Y7.11%
EPS Next 2Y8.25%
EPS Next 3Y9%
EPS Next 5Y9.81%
Revenue Next Year4.8%
Revenue Next 2Y4.48%
Revenue Next 3Y4.33%
Revenue Next 5Y4.4%
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
A Price/Earnings ratio of 15.98 indicates a correct valuation of DG.
Based on the Price/Earnings ratio, DG is valued a bit cheaper than 74.36% of the companies in the same industry.
DG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.30, the valuation of DG can be described as correct.
Based on the Price/Forward Earnings ratio, DG is valued a bit cheaper than 69.23% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, DG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 14.3 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DG.
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 | 11.8 | ||
| EV/EBITDA | 9.39 |
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)2.25
PEG (5Y)N/A
EPS Next 2Y8.25%
EPS Next 3Y9%
5. Dividend
5.1 Amount
DG has a Yearly Dividend Yield of 2.46%. 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 2.02. 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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.
DG has decreased its dividend 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.
DG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.59%
EPS Next 2Y8.25%
EPS Next 3Y9%
99.22
+3.28 (+3.42%)
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 Change0.43%
Ins Owners0.25%
Ins Owner Change0.82%
Market Cap21.84B
Revenue(TTM)41.65B
Net Income(TTM)1.19B
Analysts75.38
Price Target123.32 (24.29%)
Short Float %3.61%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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)-0.82%
PT rev (3m)3.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.82%
EPS NY rev (1m)0.03%
EPS NY rev (3m)7.22%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 14.3 | ||
| P/S | 0.52 | ||
| P/FCF | 11.8 | ||
| P/OCF | 6.92 | ||
| P/B | 2.73 | ||
| P/tB | 8.83 | ||
| EV/EBITDA | 9.39 |
EPS(TTM)6.21
EY6.26%
EPS(NY)6.94
Fwd EY6.99%
FCF(TTM)8.41
FCFY8.47%
OCF(TTM)14.35
OCFY14.46%
SpS189.23
BVpS36.4
TBVpS11.24
PEG (NY)2.25
PEG (5Y)N/A
Graham Number71.32
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 | 2.3 |
F-Score7
WACC7.64%
ROIC/WACC0.73
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 Y7.11%
EPS Next 2Y8.25%
EPS Next 3Y9%
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 2Y4.48%
Revenue Next 3Y4.33%
Revenue Next 5Y4.4%
EBIT growth 1Y-15.15%
EBIT growth 3Y-15.56%
EBIT growth 5Y-3.65%
EBIT Next Year58.45%
EBIT Next 3Y22.48%
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 4 / 10 to DG.
What is the valuation status of DOLLAR GENERAL CORP (DG) stock?
ChartMill assigns a valuation rating of 4 / 10 to DOLLAR GENERAL CORP (DG). This can be considered as Fairly Valued.
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 15.98 and the Price/Book (PB) ratio is 2.73.
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 7.11% in the next year.