DOLLAR GENERAL CORP (DG)
US2566771059 - Common Stock
We assign a fundamental rating of 5 out of 10 to DG. DG was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. DG scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, DG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
DG had positive earnings in the past year.
In the past year DG had a positive cash flow from operations.
In the past 5 years DG has always been profitable.
Each year in the past 5 years DG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.39%, DG is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
The Return On Equity of DG (24.61%) is better than 85.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.92%, DG is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DG is in line with the industry average of 9.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 24.61% | ||
| ROIC | 7.92% |
ROA(3y)7.6%
ROA(5y)8.12%
ROE(3y)35.51%
ROE(5y)34.39%
ROIC(3y)10.49%
ROIC(5y)11.04%
1.3 Margins
The Profit Margin of DG (4.29%) is better than 97.56% of its industry peers.
DG's Profit Margin has declined in the last couple of years.
DG has a Operating Margin of 6.32%. This is amongst the best in the industry. DG outperforms 100.00% of its industry peers.
DG's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 30.29%, DG is doing good in the industry, outperforming 78.05% of the companies in the same industry.
In the last couple of years the Gross Margin of DG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.32% | ||
| PM (TTM) | 4.29% | ||
| GM | 30.29% |
OM growth 3Y-15.59%
OM growth 5Y-5.18%
PM growth 3Y-18.28%
PM growth 5Y-7.09%
GM growth 3Y-1.57%
GM growth 5Y-0.11%
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 more shares outstanding
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 2.49 indicates that DG is not a great score, but indicates only limited risk for bankruptcy at the moment.
DG's Altman-Z score of 2.49 is on the low side compared to the rest of the industry. DG is outperformed by 60.98% of its industry peers.
The Debt to FCF ratio of DG is 10.12, which is on the high side as it means it would take DG, 10.12 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.12, DG is in line with its industry, outperforming 48.78% of the companies in the same industry.
DG has a Debt/Equity ratio of 0.92. This is a neutral value indicating DG is somewhat dependend on debt financing.
DG has a worse Debt to Equity ratio (0.92) than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 10.12 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.95
WACC8.31%
2.3 Liquidity
DG has a Current Ratio of 1.19. This is a normal value and indicates that DG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DG (1.19) is comparable to the rest of the industry.
DG has a Quick Ratio of 1.19. This is a bad value and indicates that DG is not financially healthy enough and could expect problems in meeting its short term obligations.
DG's Quick ratio of 0.15 is on the low side compared to the rest of the industry. DG is outperformed by 95.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
DG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.21%.
Measured over the past 5 years, DG shows a small growth in Earnings Per Share. The EPS has been growing by 4.63% on average per year.
Looking at the last year, DG shows a small growth in Revenue. The Revenue has grown by 2.24% in the last year.
Measured over the past years, DG shows a quite strong growth in Revenue. The Revenue has been growing by 8.59% on average per year.
EPS 1Y (TTM)-29.21%
EPS 3Y-10.68%
EPS 5Y4.63%
EPS growth Q2Q-38.18%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y4.66%
Revenue growth 5Y8.59%
Revenue growth Q2Q-3.38%
3.2 Future
The Earnings Per Share is expected to grow by 10.91% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.16% on average over the next years.
EPS Next Y-1.22%
EPS Next 2Y6.04%
EPS Next 3Y8.13%
EPS Next 5Y10.91%
Revenue Next Year6.19%
Revenue Next 2Y6.03%
Revenue Next 3Y5.97%
Revenue Next 5Y5.16%
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.
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
DG is valuated rather expensively with a Price/Earnings ratio of 19.16.
DG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.76, DG is valued a bit cheaper.
The Price/Forward Earnings ratio is 19.39, which indicates a rather expensive current valuation of DG.
Based on the Price/Forward Earnings ratio, DG is valued a bit cheaper than 60.98% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.26, DG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 19.39 |
4.2 Price Multiples
DG's Enterprise Value to EBITDA is on the same level as the industry average.
DG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46 | ||
| EV/EBITDA | 11.67 |
4.3 Compensation for Growth
The decent profitability rating of DG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.14
EPS Next 2Y6.04%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.53%, DG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.02, DG pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, DG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
The dividend of DG is nicely growing with an annual growth rate of 15.30%!
DG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.3%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DG pays out 31.18% of its income as dividend. This is a sustainable payout ratio.
DG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.18%
EPS Next 2Y6.04%
EPS Next 3Y8.13%
DOLLAR GENERAL CORP
NYSE:DG (4/19/2024, 7:04:00 PM)
After market: 142.5 -2.32 (-1.6%)144.82
-0.86 (-0.59%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap31.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 19.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)4.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 24.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.32% | ||
| PM (TTM) | 4.29% | ||
| GM | 30.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-29.21%
EPS 3Y-10.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.24%
Revenue growth 3Y4.66%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y