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Stock XNYS Rating as of
$145.62 +0.70(0.48%)
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Company Report
Company Report
Financial Recovery Likely to Take Time at Dollar General Amid Soft Demand From Low-Income Shoppers
Noah Rohr
Dollar General’s over 20,000 small-box locations make the retailer an omnipresent force in rural communities that lack national retail chains. The firm provides low-income households (a typical Dollar General customer earns around $40,000 per year) with a convenient fill-in shopping destination and reasonable price points on merchandise, which we view as the crux of its value proposition. Since thinly populated and less affluent towns cannot economically support an abundance of retailers, Dollar General thrives by leaning into areas with minimal competition. Furthermore, its impressive scale and proximity to consumers, product mix that is 80% consumables, and small basket size (usually around $15) help insulate the retailer from e-commerce competition.
DG is trading at a 0% discount.
Price
$144.99
Fair Value
$589.00
Uncertainty
Medium
- 1-Star Price
- $179.92
- 5-Star Price
- $295.30
- Economic Moat
- Hpqyrc
- Capital Allocation
- Nwmlcslfp
Bulls Say, Bears Say
Bulls Say, Bears Say
Bulls
Dollar General is insulated from intense retail competition by its positioning in thinly populated rural towns, which are largely unattractive for most competing retail banners.
Bears
The dollar store footprint looks crowded today—Dollar General, Dollar Tree, and Family Dollar account for over 37,000 storefronts—which could weigh on opportunities to drive growth via store expansion.
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News
News
- Costco, Lowe's, Five Below, Dollar Tree downgraded due to 'extreme' valuations
- Five Below is backing away from self-checkout to limit theft after hit to profits
- Dollar General's stock turns lower as inflation is still a problem for customers
- Dollar General Corporation Reports Fourth Quarter and Fiscal Year 2023 Results
- Despite fears, retailers have so far avoided impact of Red Sea disruption
- Customers still piling into Dollar Tree and Dollar General stores, research says
Trading Information
Trading Information
- Previous Close Price
- $144.92
- Day Range
$143.75–146.40
- 52-Week Range
$101.10–222.95
- Bid/Ask
- $145.47/$145.67
- Market Cap
- $31.97 Bil
- Volume/Avg
- 1.1 Mil/2.5 Mil
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 19.18
- Price/Sales
- 0.82
- Dividend Yield (Trailing)
- 1.63%
- Dividend Yield (Forward)
- 1.63%
- Total Yield
- 1.53%
Company Profile
Company Profile
With over 20,000 locations, Dollar General’s banner is nearly ubiquitous across the rural United States. Dollar General serves as a convenient shopping destination for fill-in store trips, with its value proposition most relevant to consumers in small communities with a dearth of shopping options. The retailer operates a frugal store of about 7,500 square feet and primarily offers an assortment of branded and private-label consumable items (80% of net sales) such as paper and cleaning products, packaged and perishable food, tobacco, and health and beauty items at low prices. Dollar General also offers a limited assortment of seasonal merchandise, home products, and apparel. The firm sells most items at a price point of $10 or lower.
- Sector
- Consumer Defensive
- Industry
- Discount Stores
- Stock Style Box
- Mid Core
- Total Number of Employees
- 170,000
- Website
- https://www.dollargeneral.com
Competitors
Competitors
- Dollar Tree Inc DLTR
- Target Corp TGT
- Walmart Inc WMT
Valuation
Valuation
| Metric | DG | DLTR | TGT |
|---|---|---|---|
Price/Earnings (Normalized) | 19.18 | 21.02 | 18.29 |
Price/Book Value | 4.72 | 3.70 | 5.61 |
Price/Sales | 0.82 | 0.89 | 0.70 |
Price/Cash Flow | 11.71 | 12.20 | 9.97 |
Price/Earnings
DG
DLTR
TGT
Financial Strength
Financial Strength
| Metric | DG | DLTR | TGT |
|---|---|---|---|
Quick Ratio | 0.10 | 0.15 | 0.27 |
Current Ratio | 1.19 | 1.31 | 0.91 |
Interest Coverage | 7.49 | −8.26 | 11.55 |
Quick Ratio
DG
DLTR
TGT
Profitability
Profitability
| Metric | DG | DLTR | TGT |
|---|---|---|---|
Return on Assets (Normalized) | 5.65% | 5.59% | 8.02% |
Return on Equity (Normalized) | 27.47% | 15.04% | 35.66% |
Return on Invested Capital (Normalized) | 8.10% | 7.27% | 15.13% |
Return on Assets
DG
DLTR
TGT
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Discount Stores Industry Comparables
Discount Stores Industry Comparables
| Ticker | Name | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|
| WMT | Walmart Inc | Hdmsvrqt | Jzdgz | $482.2 Bil | |
| COST | Costco Wholesale Corp | Kykcszcsbs | Mlkqc | $317.5 Bil | |
| TGT | Target Corp | Hvbzsqnpz | Stbl | $75.4 Bil | |
| WMMVY | Wal - Mart de Mexico SAB de CV ADR | — | Swd | $66.1 Bil | |
| WMMVF | Wal - Mart de Mexico SAB de CV | — | Xcdc | $66.1 Bil | |
| DLTR | Dollar Tree Inc | Ldggkqzkq | Bphb | $27.0 Bil | |
| DLMAF | Dollarama Inc | — | Ynxz | $22.6 Bil | |
| DQJCF | Pan Pacific International Holdings Corp | — | Tvyl | $14.6 Bil | |
| DQJCY | Pan Pacific International Holdings Corp ADR | — | Vnzn | $14.6 Bil |
