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

Fundamentals

Excellent 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


Market Performance


7 Day Return

1.3%

DG

0.7%

US Multiline Retail

0.4%

US Market


1 Year Return

50.1%

DG

17.2%

US Multiline Retail

6.9%

US Market

Return vs Industry: DG exceeded the US Multiline Retail industry which returned 17.2% over the past year.

Return vs Market: DG exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

DGIndustryMarket
7 Day1.3%0.7%0.4%
30 Day5.2%4.6%-1.1%
90 Day19.1%13.7%-0.5%
1 Year51.5%50.1%20.2%17.2%9.3%6.9%
3 Year150.6%142.0%56.8%45.1%45.8%36.4%
5 Year179.4%164.1%57.7%37.7%62.9%45.1%

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?

26.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: DG ($164.41) is trading above our estimate of fair value ($147.96)

Significantly Undervalued: DG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DG is poor value based on its PE Ratio (26.3x) compared to the Multiline Retail industry average (12.3x).

PE vs Market: DG is poor value based on its PE Ratio (26.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: DG is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: DG is overvalued based on its PB Ratio (6.3x) compared to the US Multiline Retail industry average (1.4x).


Next Steps

Future Growth

How is Dollar General forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DG's forecast earnings growth (7.7% per year) is above the savings rate (2.7%).

Earnings vs Market: DG's earnings (7.7% per year) are forecast to grow slower than the US market (14.6% 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

High Future ROE: DG's Return on Equity is forecast to be high in 3 years time (22.4%)


Next Steps

Past Performance

How has Dollar General performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DG's earnings have grown by 11% per year over the past 5 years.

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

Earnings vs Industry: DG had negative earnings growth (-6.1%) over the past year, making it difficult to compare to the Multiline Retail industry average (-14.9%).


Return on Equity

High ROE: DG's Return on Equity (24.1%) is considered high.


Return on Assets

ROA vs Industry: DG has a higher Return on Assets than the Multiline Retail industry average last year.


Return on Capital Employed

ROCE Improving: DG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Dollar General's financial position?


Financial Position Analysis

Short Term Liabilities: DG's short term assets ($4.9B) exceeds its short term liabilities ($4.3B)

Long Term Liabilities: DG's short term assets (4.9B) do not cover its long term liabilities (10.9B)


Debt to Equity History and Analysis

Debt Level: DG's debt to equity ratio (38.1%) is considered satisfactory

Reducing Debt: DG's debt to equity ratio has reduced from 58.3% to 38.1% over the past 5 years.

Debt Coverage: DG's debt is well covered by operating cash flow (84.6%).

Interest Coverage: DG's interest payments on its debt are well covered by EBIT (21.7x 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 1.911050x debt).


Next Steps

Dividend

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

0.78%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DG's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: DG's dividend (0.78%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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

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

3.0yrs

Average management tenure


CEO

Todd Vasos (57yo)

4.3yrs

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 ($USD10.60M) is about average for companies of similar size in the US market ($USD11.18M).

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

3.0yrs

Average Tenure

51yo

Average Age

Experienced Management: DG's management team is considered experienced (3 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

57.5yo

Average Age

Experienced Board: DG's board of directors are considered experienced (5.6 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

SellUS$1,111,03418 Apr 19
Robert Ravener
EntityIndividual
Shares8,973
Max PriceUS$123.82
SellUS$570,99508 Apr 19
Robert Ravener
EntityIndividual
Shares4,762
Max PriceUS$119.91
SellUS$239,64828 Mar 19
Rhonda Taylor
EntityIndividual
Role
Chief Legal Officer
Executive VP & General Counsel
Shares2,000
Max PriceUS$119.82

Ownership Breakdown


Management Team

  • Anita Elliott (54yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 3.8yrs
  • Todd Vasos (57yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$10.60m
  • Carman Wenkoff (51yo)

    Executive VP & Chief Information Officer

    • Tenure: 2.3yrs
  • Christine Connolly

    Chief Compliance Officer & Corporate Secretary

    • Tenure: 0yrs
  • Jason Reiser (51yo)

    Executive VP & Chief Merchandising Officer

    • Tenure: 2.3yrs
    • Compensation: US$2.55m
  • Rhonda Taylor (51yo)

    Executive VP & General Counsel

    • Tenure: 4.6yrs
    • Compensation: US$2.49m
  • Jeff Owen (49yo)

    Chief Operating Officer

    • Tenure: 0.2yrs
    • Compensation: US$2.61m
  • John Garratt (50yo)

    Executive VP & CFO

    • Tenure: 3.8yrs
    • Compensation: US$2.62m
  • Mary Pilkington

    Senior Vice President of Investor Relations & Public Relations

    • Tenure: 0yrs
  • Julie Elmore

    VP & CTO

    • Tenure: 1.2yrs

Board Members

  • Bill Rhodes (54yo)

    Director

    • Tenure: 10.8yrs
    • Compensation: US$264.89k
  • Pat Fili-Krushel (65yo)

    Director

    • Tenure: 7yrs
    • Compensation: US$266.89k
  • Warren Bryant (73yo)

    Director

    • Tenure: 10.8yrs
    • Compensation: US$247.89k
  • Sandy Cochran (61yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$264.45k
  • Todd Vasos (57yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$10.60m
  • Mike Calbert (56yo)

    Chairman

    • Tenure: 3.8yrs
    • Compensation: US$452.68k
  • Timothy McGuire (58yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$244.46k
  • Ralph Santana (51yo)

    Director

    • Tenure: 1.7yrs
    • 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: DG
  • Exchange: NYSE
  • Founded: 1939
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Market Cap: US$42.265b
  • Shares outstanding: 257.07m
  • 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
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, includin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:17
End of Day Share Price2019/10/18 00:00
Earnings2019/08/02
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.