DB:7DG

Stock Analysis Report

Dollar General

Executive Summary

Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, Midwestern, and eastern United States.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Dollar General's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 7DG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

7DG

1.2%

DE Multiline Retail

0.3%

DE Market


1 Year Return

38.5%

7DG

11.7%

DE Multiline Retail

13.8%

DE Market

Return vs Industry: 7DG exceeded the German Multiline Retail industry which returned 14% over the past year.

Return vs Market: 7DG exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

7DGIndustryMarket
7 Day-3.2%1.2%0.3%
30 Day-1.5%-5.7%1.3%
90 Day-6.0%5.2%5.2%
1 Year39.8%38.5%17.7%11.7%17.4%13.8%
3 Year118.0%110.8%28.9%10.9%15.9%5.7%
5 Year146.2%132.3%-4.2%-24.7%27.9%10.6%

Price Volatility Vs. Market

How volatile is Dollar General's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dollar General undervalued compared to its fair value and its price relative to the market?

26.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 7DG (€141.72) is trading below our estimate of fair value (€192.8)

Significantly Below Fair Value: 7DG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 7DG is poor value based on its PE Ratio (24x) compared to the Multiline Retail industry average (23.5x).

PE vs Market: 7DG is poor value based on its PE Ratio (24x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: 7DG is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: 7DG is overvalued based on its PB Ratio (5.9x) compared to the XE Multiline Retail industry average (3.2x).


Next Steps

Future Growth

How is Dollar General forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7DG's forecast earnings growth (8.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: 7DG's earnings (8.7% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: 7DG's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7DG's revenue (7.1% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: 7DG's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7DG's Return on Equity is forecast to be high in 3 years time (24%)


Next Steps

Past Performance

How has Dollar General performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7DG has high quality earnings.

Growing Profit Margin: 7DG's current net profit margins (6.1%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: 7DG's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: 7DG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 7DG had negative earnings growth (-8.6%) over the past year, making it difficult to compare to the Multiline Retail industry average (-1.6%).


Return on Equity

High ROE: 7DG's Return on Equity (25%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dollar General's financial position?


Financial Position Analysis

Short Term Liabilities: 7DG's short term assets ($5.1B) exceed its short term liabilities ($4.5B).

Long Term Liabilities: 7DG's short term assets ($5.1B) do not cover its long term liabilities ($11.3B).


Debt to Equity History and Analysis

Debt Level: 7DG's debt to equity ratio (41.6%) is considered high.

Reducing Debt: 7DG's debt to equity ratio has reduced from 51.6% to 41.6% over the past 5 years.

Debt Coverage: 7DG's debt is well covered by operating cash flow (82.9%).

Interest Coverage: 7DG's interest payments on its debt are well covered by EBIT (22.4x coverage).


Balance Sheet

Inventory Level: 7DG has a high level of physical assets or inventory.

Debt Coverage by Assets: 7DG's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Dollar General's current dividend yield, its reliability and sustainability?

0.83%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.3%markettop25%3.6%industryaverage3.4%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: 7DG's dividend (0.83%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: 7DG's dividend (0.83%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 7DG has been paying a dividend for less than 10 years.

Growing Dividend: 7DG's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.5%), 7DG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 7DG's dividends in 3 years are forecast to be well covered by earnings (16.7% payout ratio).


Next Steps

Management

What is the CEO of Dollar General's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Todd Vasos (57yo)

4.6yrs

Tenure

US$10,602,517

Compensation

Mr. Todd J. Vasos has been the Chief Executive Officer of Dollar General Corporation since June 3, 2015. Mr. Vasos has more than 25 years of retail experience. He served as the Chief Operating Officer of D ...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD10.60M) is above average for companies of similar size in the German market ($USD4.52M).

Compensation vs Earnings: Todd's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: 7DG's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 7DG's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell€984,04318 Apr 19
Robert Ravener
EntityIndividual
Shares8,973
Max Price€109.67
Sell€508,87108 Apr 19
Robert Ravener
EntityIndividual
Shares4,762
Max Price€106.86
Sell€212,30428 Mar 19
Rhonda Taylor
EntityIndividual
Role
Chief Legal Officer
Executive VP & General Counsel
Shares2,000
Max Price€106.15

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Anita Elliott (54yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 4.1yrs
  • Todd Vasos (57yo)

    CEO & Director

    • Tenure: 4.6yrs
    • Compensation: US$10.60m
  • Carman Wenkoff (50yo)

    Executive VP & Chief Information Officer

    • Tenure: 2.5yrs
  • Christine Connolly

    Chief Compliance Officer & Corporate Secretary

    • Jason Reiser (51yo)

      Executive VP & Chief Merchandising Officer

      • Tenure: 2.5yrs
      • Compensation: US$2.55m
    • Rhonda Taylor (51yo)

      Executive VP & General Counsel

      • Tenure: 4.8yrs
      • Compensation: US$2.49m
    • Jeff Owen (49yo)

      Chief Operating Officer

      • Tenure: 0.4yrs
      • Compensation: US$2.61m
    • John Garratt (50yo)

      Executive VP & CFO

      • Tenure: 4.1yrs
      • Compensation: US$2.62m
    • Mary Pilkington

      Senior Vice President of Investor Relations & Public Relations

      • Julie Elmore

        VP & CTO

        • Tenure: 1.4yrs

      Board Members

      • Bill Rhodes (54yo)

        Independent Director

        • Tenure: 11yrs
        • Compensation: US$264.89k
      • Pat Fili-Krushel (65yo)

        Independent Director

        • Tenure: 7.3yrs
        • Compensation: US$266.89k
      • Warren Bryant (73yo)

        Independent Director

        • Tenure: 11yrs
        • Compensation: US$247.89k
      • Sandy Cochran (61yo)

        Independent Director

        • Tenure: 7.1yrs
        • Compensation: US$264.45k
      • Todd Vasos (57yo)

        CEO & Director

        • Tenure: 4.6yrs
        • Compensation: US$10.60m
      • Mike Calbert (56yo)

        Independent Chairman of the Board

        • Tenure: 4yrs
        • Compensation: US$452.68k
      • Timothy McGuire (58yo)

        Independent Director

        • Tenure: 1.9yrs
        • Compensation: US$244.46k
      • Ralph Santana (51yo)

        Independent Director

        • Tenure: 1.9yrs
        • Compensation: US$244.46k

      Company Information

      Dollar General Corporation's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Dollar General Corporation
      • Ticker: 7DG
      • Exchange: DB
      • Founded: 1939
      • Industry: General Merchandise Stores
      • Sector: Retail
      • Market Cap: US$39.295b
      • Listing Market Cap: US$35.656b
      • Shares outstanding: 254.60m
      • Website: https://www.dollargeneral.com

      Number of Employees


      Location

      • Dollar General Corporation
      • 100 Mission Ridge
      • Goodlettsville
      • Tennessee
      • 37072
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      DGNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2009
      7DGDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2009
      0IC7LSE (London Stock Exchange)YesCommon StockGBUSDNov 2009
      DGG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 2009
      7DGETLX (Eurotlx)YesCommon StockITEURNov 2009
      DGCO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.5 COM USD0.875BRBRLMay 2019

      Biography

      Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, Midwestern, and eastern United States. The company offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, and laundry and other home cleaning supplies; packaged food comprising cereals, canned soups and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine. Its consumable products also comprise snacks, which include candies, cookies, crackers, salty snacks, and carbonated beverages; health and beauty products, including over-the-counter medicines and personal care products, such as soaps, body washes, shampoos, cosmetics, and dental hygiene and foot care products; pet supplies and pet food; and tobacco products. In addition, the company offers seasonal products comprising decorations, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, and automotive and home office supplies; and home products that include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, and bed and bath soft goods. Further, it provides apparel, which comprises casual everyday apparel for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories. As of November 1, 2019, Dollar General Corporation operated 16,094 stores in 44 states. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/27 21:47
      End of Day Share Price2020/01/27 00:00
      Earnings2019/11/01
      Annual Earnings2019/02/01


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.