DG Intrinsic Valuation and Fundamental Analysis - Dollar General Corp - Alpha Spread

Dollar General Corp
NYSE:DG

Watchlist Manager
Dollar General Corp Logo
Dollar General Corp
NYSE:DG
Watchlist
Price: 82.49 USD 0.06% Market Closed
Market Cap: 18.1B USD
Have any thoughts about
Dollar General Corp?
Write Note

Intrinsic Value

The intrinsic value of one DG stock under the Base Case scenario is 160.79 USD. Compared to the current market price of 82.49 USD, Dollar General Corp is Undervalued by 49%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

DG Intrinsic Value
160.79 USD
Undervaluation 49%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Dollar General Corp

Backtest Intrinsic Value
Dive into the past to invest in the future

Uncover deeper insights with the Valuation Backtest. Learn how current stock valuations stack up against historical averages to gauge true investment potential.

Start backtest now and learn if your stock is truly undervalued or overvalued!

Run Backtest
Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

Backtest Example
Register to View Results
Register to View Results

To access the results of this valuation backtest, please register an account with us. Registration is quick and gives you instant access to insights on 3 stocks per week for free.

Backtest Unavailable

The backtest for DG cannot be conducted due to limitations such as insufficient data or other constraints. Please select a different stock or adjust your settings.

Backtest In Progress...
Backtest In Progress...
How do you feel about DG?
Bearish
Neutral
Bullish

Fundamental Analysis

Summary

 

 

 

 

View All Risks & Rewards
Company Quality
No Indicators Selected
Select Indicators

Select up to 3 indicators:

Insider Trading
0-3
Months
0-6
Months
0-12
Months
0-36
Months
No Periods Selected
Select Periods

Select up to 2 periods:

AI Assistant
AI Assistant
Ask me anything about Dollar General Corp

Provide an overview of the primary business activities
of Dollar General Corp.

What unique competitive advantages
does Dollar General Corp hold over its rivals?

What risks and challenges
does Dollar General Corp face in the near future?

Has there been any significant insider trading activity
in Dollar General Corp recently?

Summarize the latest earnings call
of Dollar General Corp.

What significant events have occurred
in Dollar General Corp over the past months?

Is it considered overvalued or undervalued
based on the latest financial data?

Show all valuation multiples
for Dollar General Corp.

Provide P/S
for Dollar General Corp.

Provide P/E
for Dollar General Corp.

Provide P/OCF
for Dollar General Corp.

Provide P/FCFE
for Dollar General Corp.

Provide P/B
for Dollar General Corp.

Provide EV/S
for Dollar General Corp.

Provide EV/GP
for Dollar General Corp.

Provide EV/EBITDA
for Dollar General Corp.

Provide EV/EBIT
for Dollar General Corp.

Provide EV/OCF
for Dollar General Corp.

Provide EV/FCFF
for Dollar General Corp.

Provide EV/IC
for Dollar General Corp.

Show me price targets
for Dollar General Corp made by professional analysts.

What are the Revenue projections
for Dollar General Corp?

How accurate were the past Revenue estimates
for Dollar General Corp?

What are the Net Income projections
for Dollar General Corp?

How accurate were the past Net Income estimates
for Dollar General Corp?

What are the EPS projections
for Dollar General Corp?

How accurate were the past EPS estimates
for Dollar General Corp?

What are the EBIT projections
for Dollar General Corp?

How accurate were the past EBIT estimates
for Dollar General Corp?

Compare the revenue forecasts
for Dollar General Corp with those of its competitors based on recent analyst estimates.

Compare the intrinsic valuations
of Dollar General Corp and its key competitors using the latest financial data.

Compare historical revenue growth rates
of Dollar General Corp against its competitors.

Analyze the profit margins
(gross, operating, and net) of Dollar General Corp compared to its peers.

Compare the P/E ratios
of Dollar General Corp against its peers.

Discuss the investment returns and shareholder value creation
comparing Dollar General Corp with its peers.

Analyze the financial leverage
of Dollar General Corp compared to its main competitors.

Show all profitability ratios
for Dollar General Corp.

Provide ROE
for Dollar General Corp.

Provide ROA
for Dollar General Corp.

Provide ROIC
for Dollar General Corp.

Provide ROCE
for Dollar General Corp.

Provide Gross Margin
for Dollar General Corp.

Provide Operating Margin
for Dollar General Corp.

Provide Net Margin
for Dollar General Corp.

Provide FCF Margin
for Dollar General Corp.

Show all solvency ratios
for Dollar General Corp.

Provide D/E Ratio
for Dollar General Corp.

Provide D/A Ratio
for Dollar General Corp.

Provide Interest Coverage Ratio
for Dollar General Corp.

Provide Altman Z-Score Ratio
for Dollar General Corp.

Provide Quick Ratio
for Dollar General Corp.

Provide Current Ratio
for Dollar General Corp.

Provide Cash Ratio
for Dollar General Corp.

What is the historical Revenue growth
over the last 5 years for Dollar General Corp?

What is the historical Net Income growth
over the last 5 years for Dollar General Corp?

What is the current Free Cash Flow
of Dollar General Corp?

Discuss the annual earnings per share (EPS)
trend over the past five years for Dollar General Corp.

Business Breakdown

Dollar General Corp. has carved a unique niche in the retail landscape by offering a convenient shopping experience with a focus on value. Founded in 1939, the company has evolved into one of the largest discount retailers in the United States, with a network of over 17,000 stores across 46 states. Dollar General specializes in providing everyday household items, groceries, and seasonal goods at affordable prices, catering primarily to low- and middle-income shoppers in rural and suburban areas. The company's business model thrives on operational efficiency, keeping overhead costs low while maintaining an impressive inventory turnover, which translates to robust sales growth and profitabilit...

Read More
Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Dollar General Corp

Current Assets 8.7B
Cash & Short-Term Investments 1.2B
Receivables 61.5m
Other Current Assets 7.4B
Non-Current Assets 23.1B
PP&E 17.5B
Intangibles 5.5B
Other Non-Current Assets 61.5m
Current Liabilities 7.1B
Accounts Payable 3.9B
Accrued Liabilities 2.5B
Other Current Liabilities 781.4m
Non-Current Liabilities 17.4B
Long-Term Debt 6.2B
Other Non-Current Liabilities 11.2B
Efficiency

Earnings Waterfall
Dollar General Corp

Revenue
39.7B USD
Cost of Revenue
-27.9B USD
Gross Profit
11.8B USD
Operating Expenses
-9.7B USD
Operating Income
2.1B USD
Other Expenses
-693.6m USD
Net Income
1.4B USD

Free Cash Flow Analysis
Dollar General Corp

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Dollar General reported a 4.2% increase in net sales to $10.2 billion for Q2 but faced a 20.2% decline in EPS to $1.70. Gross profit margin dropped by 112 basis points to 30% due to increased markdowns and inventory damages. The company revised its 2024 guidance, projecting net sales growth of 4.7% to 5.3% and same-store sales growth of 1% to 1.6%. Despite ongoing challenges, Dollar General is committed to its back-to-basics strategy, expecting EPS to range between $5.50 and $6.20 for the year.

What is Earnings Call?
Fundamental Scores

DG Profitability Score
Profitability Due Diligence

Dollar General Corp's profitability score is 54/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Year Average ROE
Positive Gross Profit
Positive ROE
Positive Free Cash Flow
54/100
Profitability
Score

Dollar General Corp's profitability score is 54/100. The higher the profitability score, the more profitable the company is.

DG Solvency Score
Solvency Due Diligence

Dollar General Corp's solvency score is 47/100. The higher the solvency score, the more solvent the company is.

Low D/E
Long-Term Solvency
Short-Term Solvency
Average Altman Z-Score
47/100
Solvency
Score

Dollar General Corp's solvency score is 47/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

DG Price Targets Summary
Dollar General Corp

Wall Street analysts forecast DG stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for DG is 103.23 USD with a low forecast of 87.87 USD and a high forecast of 134.4 USD.

Lowest
Price Target
87.87 USD
7% Upside
Average
Price Target
103.23 USD
25% Upside
Highest
Price Target
134.4 USD
63% Upside
View Analyst Estimates
View Analyst Estimates
Want to learn more about Wall St estimates for DG?

Click here to dive deeper.

Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
Very
Unsafe
Unsafe
Safe
Very
Safe
0
25
50
75
100
Previous Payment
-
Today
Next Payment
-
Today
Oct 12, 2024
Previous Payment
-
Next Payment
-
Ex-Dividend Date
-
Want to learn more about DG dividends?

Click here to dive deeper.

Shareholder Yield

Current shareholder yield for DG is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
Lowest
Average
Highest
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Ownership

DG Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

DG News

Other Videos

Profile

Dollar General Corp Logo
Dollar General Corp

Country

United States of America

Industry

Retail

Market Cap

18.1B USD

Dividend Yield

2.86%

Description

Dollar General Corp. engages in the operation of merchandise stores. The company is headquartered in Goodlettsville, Tennessee and currently employs 163,000 full-time employees. The company went IPO on 2009-11-13. The firm offers merchandise, including consumable items, seasonal items, home products and apparel. Its merchandise includes brands from manufacturers, as well as its own private brand selections with prices at discounts to brands. Its consumables category includes paper and cleaning products, packaged food, perishables, snacks, health and beauty, pet, and tobacco products. Its seasonal products include holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, automotive and home office supplies. Its home products include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, bed and bath soft goods. Its apparel products include casual everyday apparel for infants, toddlers, girls, boys, women and men, as well as socks, underwear, disposable diapers, shoes and accessories.

Contact

TENNESSEE
Goodlettsville
100 Mission Ridge
+16158554000.0
www.dollargeneral.com

IPO

2009-11-13

Employees

163 000

Officers

See Also

Discover More
What is the Intrinsic Value of one DG stock?

The intrinsic value of one DG stock under the Base Case scenario is 160.79 USD.

Is DG stock undervalued or overvalued?

Compared to the current market price of 82.49 USD, Dollar General Corp is Undervalued by 49%.

Back to Top