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DG

Dollar GeneralNYSE:DG Stock Report

Market Cap

US$52.5b

7D

-0.4%

1Y

3.0%

Updated

30 Nov, 2021

Data

Company Financials +
DG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance4/6
Financial Health3/6
Dividends2/6

DG Stock Overview

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

Dollar General Competitors

Target

NYSE:TGT

US$118.1b

Dollar Tree

NasdaqGS:DLTR

US$31.8b

Ollie's Bargain Outlet Holdings

NasdaqGM:OLLI

US$4.1b

Big Lots

NYSE:BIG

US$1.4b

Price History & Performance

Summary of all time highs, changes and price drops for Dollar General
Historical stock prices
Current Share PriceUS$225.07
52 Week HighUS$239.35
52 Week LowUS$173.50
Beta0.50
1 Month Change1.60%
3 Month Change0.97%
1 Year Change2.97%
3 Year Change101.50%
5 Year Change194.71%
Change since IPO890.19%

Recent News & Updates

Nov 21
We Think Dollar General (NYSE:DG) Can Stay On Top Of Its Debt

We Think Dollar General (NYSE:DG) Can Stay On Top Of Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Nov 08
Some Investors May Be Worried About Dollar General's (NYSE:DG) Returns On Capital

Some Investors May Be Worried About Dollar General's (NYSE:DG) Returns On Capital

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Oct 21

Why Dollar General's Growth Outlook Is Stunning

We view Dollar General Corporation's capital appreciation upside potential quite favorably. Several sales growth and margin-enhancing initiatives that are currently underway underpin Dollar General's bright free cash flow growth outlook. At the top end of our fair value estimate range, shares of DG have an intrinsic value of $266 per share. The stock is trading at ~$215 at this time.

Sep 16
Calculating The Intrinsic Value Of Dollar General Corporation (NYSE:DG)

Calculating The Intrinsic Value Of Dollar General Corporation (NYSE:DG)

Does the September share price for Dollar General Corporation ( NYSE:DG ) reflect what it's really worth? Today, we...

Sep 01
If You Like EPS Growth Then Check Out Dollar General (NYSE:DG) Before It's Too Late

If You Like EPS Growth Then Check Out Dollar General (NYSE:DG) Before It's Too Late

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

DGUS Multiline RetailUS Market
7D-0.4%-0.4%-0.9%
1Y3.0%28.2%23.3%

Return vs Industry: DG underperformed the US Multiline Retail industry which returned 26.9% over the past year.

Return vs Market: DG underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is DG's price volatile compared to industry and market?
DG volatility
DG Average Weekly Movement2.3%
Multiline Retail Industry Average Movement7.4%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: DG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: DG's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1939158,000Todd Vasoshttps://www.dollargeneral.com

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.

Dollar General Fundamentals Summary

How do Dollar General's earnings and revenue compare to its market cap?
DG fundamental statistics
Market CapUS$52.51b
Earnings (TTM)US$2.53b
Revenue (TTM)US$33.67b

20.7x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DG income statement (TTM)
RevenueUS$33.67b
Cost of RevenueUS$22.87b
Gross ProfitUS$10.80b
ExpensesUS$8.27b
EarningsUS$2.53b

Last Reported Earnings

Jul 30, 2021

Next Earnings Date

Dec 02, 2021

Earnings per share (EPS)10.85
Gross Margin32.07%
Net Profit Margin7.52%
Debt/Equity Ratio67.7%

How did DG perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

15%

Payout Ratio

Valuation

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

7.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DG ($225.07) is trading below our estimate of fair value ($243.69)

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


Price To Earnings Ratio

PE vs Industry: DG's PE Ratio (20.7x) is in line with the US Multiline Retail industry average.

PE vs Market: DG is poor value based on its PE Ratio (20.7x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: DG is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: DG is overvalued based on its PB Ratio (8.6x) compared to the US Multiline Retail industry average (3.7x).


Future Growth

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

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DG's forecast earnings growth (6.7% per year) is above the savings rate (2%).

Earnings vs Market: DG's earnings (6.7% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: DG's revenue (6.7% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: DG's revenue (6.7% 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 very high in 3 years time (40.2%).


Past Performance

How has Dollar General performed over the past 5 years?

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DG has high quality earnings.

Growing Profit Margin: DG's current net profit margins (7.5%) are higher than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: DG's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: DG's earnings growth over the past year (8.4%) is below its 5-year average (16.9% per year).

Earnings vs Industry: DG earnings growth over the past year (8.4%) underperformed the Multiline Retail industry 8.4%.


Return on Equity

High ROE: DG's Return on Equity (41.3%) is considered outstanding.


Financial Health

How is Dollar General's financial position?


Financial Position Analysis

Short Term Liabilities: DG's short term assets ($6.0B) exceed its short term liabilities ($5.5B).

Long Term Liabilities: DG's short term assets ($6.0B) do not cover its long term liabilities ($13.9B).


Debt to Equity History and Analysis

Debt Level: DG's net debt to equity ratio (62.6%) is considered high.

Reducing Debt: DG's debt to equity ratio has increased from 56.5% to 67.7% over the past 5 years.

Debt Coverage: DG's debt is well covered by operating cash flow (55%).

Interest Coverage: DG's interest payments on its debt are well covered by EBIT (21.2x coverage).


Balance Sheet


Dividend

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

0.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DG's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: DG's dividend (0.75%) is low compared to the top 25% of dividend payers in the US market (3.58%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.9%), DG's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DG's dividends in 3 years are forecast to be well covered by earnings (17.8% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Todd Vasos (59 yo)

6.42yrs

Tenure

US$16,452,823

Compensation

Mr. Todd J. Vasos serves as an 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 e...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD16.45M) is above average for companies of similar size in the US market ($USD11.11M).

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


Leadership Team

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


Board Members

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 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$52.511b
  • Shares outstanding: 233.31m
  • Website: https://www.dollargeneral.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 00:12
End of Day Share Price2021/11/29 00:00
Earnings2021/07/30
Annual Earnings2021/01/29


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.