NYSE:DG

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Outstanding track record and fair value.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: DG's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-2.0%

DG

-0.08%

US Multiline Retail

-0.9%

US Market


1 Year Return

33.8%

DG

41.9%

US Multiline Retail

19.6%

US Market

Return vs Industry: DG underperformed the US Multiline Retail industry which returned 44.3% over the past year.

Return vs Market: DG exceeded the US Market which returned 21% over the past year.


Shareholder returns

DGIndustryMarket
7 Day-2.0%-0.08%-0.9%
30 Day0.2%7.6%3.0%
90 Day-4.6%12.5%11.5%
1 Year34.8%33.8%44.0%41.9%22.3%19.6%
3 Year113.2%107.3%75.5%65.7%45.3%35.7%
5 Year210.5%194.2%131.0%104.9%124.8%99.9%

Long-Term 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?

3.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DG ($211.44) is trading below our estimate of fair value ($219.63)

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 good value based on its PE Ratio (20.8x) compared to the US Multiline Retail industry average (26x).

PE vs Market: DG is good value based on its PE Ratio (20.8x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: DG is poor value based on its PEG Ratio (31.2x)


Price to Book Ratio

PB vs Industry: DG is overvalued based on its PB Ratio (7.4x) compared to the US 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 25 analysts?

0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DG's forecast earnings growth (0.7% per year) is below the savings rate (2%).

Earnings vs Market: DG's earnings (0.7% per year) are forecast to grow slower than the US market (21.6% per year).

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

Revenue vs Market: DG's revenue (5.1% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: DG's revenue (5.1% 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 (30.9%)


Next Steps

Past Performance

How has Dollar General performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DG has high quality earnings.

Growing Profit Margin: DG's current net profit margins (7.8%) are higher than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: DG's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: DG's earnings growth over the past year (53.5%) exceeds its 5-year average (14.2% per year).

Earnings vs Industry: DG earnings growth over the past year (53.5%) exceeded the Multiline Retail industry 35.8%.


Return on Equity

High ROE: DG's Return on Equity (36.5%) 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 ($7.5B) exceed its short term liabilities ($5.9B).

Long Term Liabilities: DG's short term assets ($7.5B) do not cover its long term liabilities ($13.3B).


Debt to Equity History and Analysis

Debt Level: DG's debt to equity ratio (59.1%) is considered high.

Reducing Debt: DG's debt to equity ratio has increased from 58% to 59.1% over the past 5 years.

Debt Coverage: DG's debt is well covered by operating cash flow (95.9%).

Interest Coverage: DG's interest payments on its debt are well covered by EBIT (25.1x coverage).


Balance Sheet


Next Steps

Dividend

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

0.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DG's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: DG's dividend (0.68%) is low compared to the top 25% of dividend payers in the US market (3.84%).


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?

5.1yrs

Average management tenure


CEO

Todd Vasos (58 yo)

5.58yrs

Tenure

US$12,008,059

Compensation

Mr. Todd J. Vasos serves as Independent Director at KeyCorp since July 8, 2020. He has been the Chief Executive Officer of Dollar General Corporation since June 3, 2015. Mr. Vasos has extensive retail expe...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD12.01M) is about average for companies of similar size in the US market ($USD10.54M).

Compensation vs Earnings: Todd's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Todd Vasos
CEO & Director5.58yrsUS$12.01m0.049%
$ 25.7m
John Garratt
Executive VP & CFO5.08yrsUS$2.92m0.0037%
$ 1.9m
Jeffery Owen
Chief Operating Officer1.42yrsUS$3.51m0.0070%
$ 3.7m
Rhonda Taylor
Executive VP & General Counsel5.83yrsUS$2.69m0.0099%
$ 5.2m
Anita Elliott
Senior VP & Chief Accounting Officer5.08yrsno data0.0044%
$ 2.3m
Julie Elmore
VP & CTO2.42yrsno datano data
Carman Wenkoff
Executive VP & Chief Information Officer3.5yrsno data0.0023%
$ 1.2m
Donny Lau
VP of Investor Relations & Corporate Strategyno datano datano data
Christine Connolly
Chief Compliance Officer & Corporate Secretaryno datano datano data
Kathleen Reardon
Executive VP & Chief People Officer1.67yrsno data0.00051%
$ 266.4k
Rita Branham
Senior Vice President and General Merchandise Manager of Consumables14.83yrsno datano data
Bryan Wheeler
Senior VP & General Merchandise Managerno datano datano data

5.1yrs

Average Tenure

51.5yo

Average Age

Experienced Management: DG's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Todd Vasos
CEO & Director5.58yrsUS$12.01m0.049%
$ 25.7m
William Rhodes
Independent Director12yrsUS$266.38k0.017%
$ 8.7m
Patricia Fili-Krushel
Independent Director8.25yrsUS$261.38k0.0059%
$ 3.1m
Warren Bryant
Independent Director12yrsUS$241.38k0.010%
$ 5.5m
Michael Calbert
Independent Chairman of the Board5yrsUS$462.73k0.038%
$ 19.7m
Debra Sandler
Independent Director0.75yrno datano data
Ralph Santana
Independent Director2.92yrsUS$241.38k0.00065%
$ 339.6k
Timothy McGuire
Independent Director2.92yrsUS$241.38k0.0021%
$ 1.1m

5.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: DG's board of directors are considered experienced (5.3 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$52.244b
  • Shares outstanding: 245.00m
  • 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 2 REP 1 COMBRBRLMay 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, includin...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 23:08
End of Day Share Price2021/01/15 00:00
Earnings2020/10/30
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.