NYSE:DG

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Proven track record with adequate balance sheet.


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: DG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

11.0%

DG

-1.1%

US Multiline Retail

-2.0%

US Market


1 Year Return

32.3%

DG

-14.9%

US Multiline Retail

-15.1%

US Market

Return vs Industry: DG exceeded the US Multiline Retail industry which returned -13.5% over the past year.

Return vs Market: DG exceeded the US Market which returned -13.6% over the past year.


Shareholder returns

DGIndustryMarket
7 Day11.0%-1.1%-2.0%
30 Day3.0%-14.3%-19.7%
90 Day4.4%-24.8%-23.2%
1 Year33.5%32.3%-12.6%-14.9%-13.4%-15.1%
3 Year141.1%134.0%32.3%22.7%10.9%3.7%
5 Year125.4%113.2%-6.5%-19.1%28.4%14.4%

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

Valuation

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

15.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DG ($159.7) is trading below our estimate of fair value ($192.07)

Significantly Below Fair Value: DG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DG is poor value based on its PE Ratio (23.9x) compared to the Multiline Retail industry average (6.4x).

PE vs Market: DG is poor value based on its PE Ratio (23.9x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: DG is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: DG is overvalued based on its PB Ratio (6x) compared to the US Multiline Retail industry average (0.5x).


Next Steps

Future Growth

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

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DG's forecast earnings growth (7.9% per year) is above the savings rate (1.7%).

Earnings vs Market: DG's earnings (7.9% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: DG's revenue (6.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: DG's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DG's Return on Equity is forecast to be high in 3 years time (26.8%)


Next Steps

Past Performance

How has Dollar General performed over the past 5 years?

10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DG has high quality earnings.

Growing Profit Margin: DG's current net profit margins (6.2%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: DG's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: DG's earnings growth over the past year (7.6%) is below its 5-year average (10.6% per year).

Earnings vs Industry: DG earnings growth over the past year (7.6%) exceeded the Multiline Retail industry -3.8%.


Return on Equity

High ROE: DG's Return on Equity (25.6%) is considered high.


Next Steps

Financial Health

How is Dollar General's financial position?


Financial Position Analysis

Short Term Liabilities: DG's short term assets ($5.2B) exceed its short term liabilities ($4.5B).

Long Term Liabilities: DG's short term assets ($5.2B) do not cover its long term liabilities ($11.6B).


Debt to Equity History and Analysis

Debt Level: DG's debt to equity ratio (43.4%) is considered high.

Reducing Debt: DG's debt to equity ratio has reduced from 47.7% to 43.4% over the past 5 years.

Debt Coverage: DG's debt is well covered by operating cash flow (76.9%).

Interest Coverage: DG's interest payments on its debt are well covered by EBIT (23.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: DG'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?

0.89%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: DG's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2%).

High Dividend: DG's dividend (0.9%) is low compared to the top 25% of dividend payers in the US market (5.56%).


Stability and Growth of Payments

Stable Dividend: DG is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: DG is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: DG is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Todd Vasos (57yo)

4.83s

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 ($USD10.60M) is about average for companies of similar size in the US market ($USD11.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Todd Vasos
CEO & Director4.83yrsUS$10.60m0.040% $16.4m
John Garratt
Executive VP & CFO4.33yrsUS$2.62m0.0054% $2.2m
Jeffery Owen
Chief Operating Officer0.67yrUS$2.61m0.0051% $2.1m
Jason Reiser
Executive VP & Chief Merchandising Officer2.75yrsUS$2.55m0.0026% $1.1m
Anita Elliott
Senior VP & Chief Accounting Officer4.33yrsno data0.0038% $1.5m
Julie Elmore
VP & CTO1.67yrsno datano data
Carman Wenkoff
Executive VP & Chief Information Officer2.75yrsno data0.0026% $1.0m
Mary Pilkington
Senior Vice President of Investor Relations & Public Relationsno datano datano data
Christine Connolly
Chief Compliance Officer & Corporate Secretaryno datano datano data
Rhonda Taylor
Executive VP & General Counsel5.08yrsUS$2.49m0.0078% $3.2m

3.5yrs

Average Tenure

51yo

Average Age

Experienced Management: DG's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Todd Vasos
CEO & Director4.83yrsUS$10.60m0.040% $16.4m
William Rhodes
Independent Director11.25yrsUS$264.89k0.017% $6.9m
Patricia Fili-Krushel
Independent Director7.5yrsUS$266.89k0.0042% $1.7m
Warren Bryant
Independent Director11.25yrsUS$247.89k0.0075% $3.0m
Sandra Cochran
Independent Director7.33yrsUS$264.45k0.0047% $1.9m
Michael Calbert
Independent Chairman of the Board4.25yrsUS$452.68k0.028% $11.6m
Timothy McGuire
Independent Director2.17yrsUS$244.46k0.0015% $624.2k
Ralph Santana
Independent Director2.17yrsUS$244.46kno data

6.1yrs

Average Tenure

57.5yo

Average Age

Experienced Board: DG's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Dollar General Corporation
  • Ticker: DG
  • Exchange: NYSE
  • Founded: 1939
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Market Cap: US$40.796b
  • Shares outstanding: 251.52m
  • 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
7DGBRSE (Berne Stock Exchange)YesCommon StockCHCHFNov 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 products; 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, such as 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 holiday items, 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 comprise casual everyday apparel for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories. As of February 28, 2020, Dollar General Corporation operated 16,368 stores in 45 states in the United 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 Analysis2020/04/04 03:13
End of Day Share Price2020/04/03 00:00
Earnings2020/01/31
Annual Earnings2020/01/31


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.