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Dollar General (DG) Stock Analysis

Here is a fundamental analysis of Dollar General (DG), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

DG
GSPC
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Dollar General (DG) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Dollar General (DG) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Dollar General (DG) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: DGIndustry group median
1-Year Return4.73%16.68%

Risk

Drawdown

DG
GSPC
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Dollar General (DG) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Dollar General (DG) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: DGIndustry group median
1-Year Volatility34.84%32.49%
Beta0.250.64

Company Profile

Company profile fields for Dollar General (DG)
Profile ItemDG
NameDollar General Corporation
Country/RegionUnited States
GICS SectorConsumer Staples
GICS Industry GroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
GICS Sub-IndustryConsumer Staples Merchandise Retail
Market Capitalization25.32 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateNovember 13, 2009
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Dollar General (DG) trades at P/E ratio of 16.24, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

DG

Consumer Staples Distribution & Retail industry group

16.24

Group distribution
Max
49.59
Q3
40.27
Median
21.91
Q1
17.31
DG
16.24
Min
11.33
Largest peers
COST
49.51
CASY
46.72
WMT
42.62
KR
42.02
SYY
22.00
TGT
17.86
DG
16.24
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Where Dollar General (DG) stands on P/E ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Dollar General (DG) trades at 0.59 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

DG

Consumer Staples Distribution & Retail industry group

0.59

Group distribution
Max
1.89
Q3
0.91
DG
0.59
Median
0.52
Q1
0.26
Min
0.02
Largest peers
CASY
1.89
COST
1.48
WMT
1.33
DG
0.59
TGT
0.58
SYY
0.45
KR
0.27
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Where Dollar General (DG) stands on P/S ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Dollar General (DG) trades at 2.86 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

DG

Consumer Staples Distribution & Retail industry group

2.86

Group distribution
Max
9.68
Q3
6.23
Median
4.10
DG
2.86
Q1
2.15
Min
0.76
Largest peers
COST
26.35
SYY
16.61
WMT
9.68
CASY
8.37
KR
6.99
TGT
3.75
DG
2.86
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Where Dollar General (DG) stands on P/B ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Dollar General (DG) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: DGIndustry group median
Price-to-Earnings Ratio (TTM)16.2421.91
Price-to-Sales Ratio (TTM)0.590.52
Price-to-Book Ratio (MRQ)2.864.10
Free Cash Flow Yield7.43%4.72%

Profitability

Return on Equity (TTM)

Dollar General (DG) posts ROE of 18.91%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

DG

Consumer Staples Distribution & Retail industry group

18.91%

Group distribution
Max
37.28%
Q3
22.55%
DG
18.91%
Median
14.81%
Q1
8.71%
Min
-2.30%
Largest peers
SYY
81.90%
COST
29.15%
WMT
24.13%
TGT
22.02%
CASY
19.15%
DG
18.91%
KR
14.41%
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Where Dollar General (DG) stands on ROE within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Dollar General (DG) keeps 3.63% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

DG

Consumer Staples Distribution & Retail industry group

3.63%

Group distribution
Max
6.51%
DG
3.63%
Q3
3.51%
Median
2.17%
Q1
1.27%
Min
-0.12%
Largest peers
CASY
4.07%
DG
3.63%
TGT
3.24%
WMT
3.14%
COST
3.01%
SYY
2.08%
KR
0.69%
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Where Dollar General (DG) stands on net margin within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Dollar General (DG) turns 5.92% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

DG

Consumer Staples Distribution & Retail industry group

5.92%

Group distribution
Max
9.24%
DG
5.92%
Q3
5.12%
Median
3.55%
Q1
1.19%
Min
-0.11%
Largest peers
DG
5.92%
CASY
5.14%
TGT
4.52%
WMT
4.22%
SYY
3.75%
COST
3.67%
KR
3.44%
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Where Dollar General (DG) stands on operating margin within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Dollar General (DG) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: DGIndustry group median
Return on Equity (TTM)18.91%14.81%
Return on Assets (TTM)4.63%5.63%
Net Profit Margin (TTM)3.63%2.17%
Operating Profit Margin (TTM)5.92%3.55%
Gross Profit Margin (TTM)30.83%24.79%

Financial Strength

Current Ratio (MRQ)

Dollar General (DG) has current ratio of 1.17, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

DG

Consumer Staples Distribution & Retail industry group

1.17

Group distribution
Max
1.52
Q3
1.36
DG
1.17
Median
1.17
Q1
0.95
Min
0.60
Largest peers
SYY
1.33
DG
1.17
COST
1.07
CASY
1.01
TGT
0.93
KR
0.80
WMT
0.77
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Where Dollar General (DG) stands on current ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

Dollar General (DG) has debt-to-equity ratio of 1.79, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

DG

Consumer Staples Distribution & Retail industry group

1.79

Group distribution
Max
3.40
Q3
1.93
DG
1.79
Median
1.29
Q1
0.65
Min
0.00
Largest peers
SYY
6.70
KR
4.16
DG
1.79
TGT
1.18
WMT
0.75
CASY
0.73
COST
0.60
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Where Dollar General (DG) stands on debt-to-equity ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Dollar General (DG) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: DGIndustry group median
Current Ratio (MRQ)1.171.17
Debt-to-Equity Ratio (MRQ)1.791.29
Net Debt / EBITDA4.262.59

Dividends

Dividend Yield (TTM)

Dollar General (DG) has dividend yield of 2.06%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

DG

Consumer Staples Distribution & Retail industry group

2.06%

Group distribution
Max
4.41%
DG
2.06%
Q3
2.02%
Median
0.66%
Q1
0.00%
Min
0.00%
Largest peers
TGT
3.43%
SYY
2.78%
KR
2.16%
DG
2.06%
WMT
0.82%
COST
0.60%
CASY
0.26%
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Where Dollar General (DG) stands on dividend yield within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Dollar General (DG) has payout ratio of 33.38%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

DG

Consumer Staples Distribution & Retail industry group

33.38%

Group distribution
Max
60.00%
DG
33.38%
Q3
31.85%
Median
16.54%
Q1
0.00%
Min
0.00%
Largest peers
KR
87.01%
SYY
60.00%
TGT
59.97%
WMT
33.54%
DG
33.38%
COST
27.01%
CASY
11.90%
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Where Dollar General (DG) stands on payout ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Dollar General (DG) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: DGIndustry group median
Dividend Yield (TTM)2.06%0.66%
Dividend Payout Ratio (TTM)33.38%16.54%