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
Trailing Returns
Performance at a Glance
| Metric | Current stock: DG | Industry group median |
|---|---|---|
| 1-Year Return | 4.73% | 16.68% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: DG | Industry group median |
|---|---|---|
| 1-Year Volatility | 34.84% | 32.49% |
| Beta | 0.25 | 0.64 |
Company Profile
| Profile Item | DG |
|---|---|
| Name | Dollar General Corporation |
| Country/Region | United States |
| GICS Sector | Consumer Staples |
| GICS Industry Group | Consumer Staples Distribution & Retail |
| GICS Industry | Consumer Staples Distribution & Retail |
| GICS Sub-Industry | Consumer Staples Merchandise Retail |
| Market Capitalization | 25.32 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | November 13, 2009 |
| Security Type | Common 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
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
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
Valuation at a Glance
| Metric | Current stock: DG | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 16.24 | 21.91 |
| Price-to-Sales Ratio (TTM) | 0.59 | 0.52 |
| Price-to-Book Ratio (MRQ) | 2.86 | 4.10 |
| Free Cash Flow Yield | 7.43% | 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%
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%
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%
Profitability at a Glance
| Metric | Current stock: DG | Industry 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
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
Financial Strength at a Glance
| Metric | Current stock: DG | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.17 | 1.17 |
| Debt-to-Equity Ratio (MRQ) | 1.79 | 1.29 |
| Net Debt / EBITDA | 4.26 | 2.59 |
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%
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%
Dividends at a Glance
| Metric | Current stock: DG | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.06% | 0.66% |
| Dividend Payout Ratio (TTM) | 33.38% | 16.54% |