Morningstar Rating
Stock XNYS Rating as of
$128.77 +1.27(1.00%)
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Company Report
Company Report
Dollar General's Results Likely to Remain Pressured as Low-Income Shoppers Reduce Spending
Noah Rohr
Dollar General’s more than 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 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.
Price vs Fair Value
Price vs Fair Value
DG is trading at a 85% premium.
Price
$128.77
Fair Value
$186.00
Uncertainty
Medium
- 1-Star Price
- $121.32
- 5-Star Price
- $752.50
- Economic Moat
- Qswqmx
- Capital Allocation
- Smqnbqn
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
- Dollar General Extends American Red Cross Partnership
- Dollar General Selects Criteo to Enhance its Retail Media Offering
- Dollar General sees more people in its stores, but they are buying less
- Dollar General Corporation Reports First Quarter 2024 Results
- Some buzzy AI names highlight this week's earnings slate - along with Costco
- Dollar General Literacy Foundation Awards More Than $10.6 Million
- Dollar General Corporation Announces Webcast of its First Quarter 2024 Earnings Conference Call
Trading Information
Trading Information
- Previous Close Price
- $127.50
- Day Range
$127.50–129.89
- 52-Week Range
$101.09–173.47
- Bid/Ask
- $128.50/$129.20
- Market Cap
- $28.32 Bil
- Volume/Avg
- 3.3 Mil/2.4 Mil
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 18.74
- Price/Sales
- 0.72
- Dividend Yield (Trailing)
- 1.83%
- Dividend Yield (Forward)
- 1.83%
- Total Yield
- 1.83%
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 less.
- Sector
- Consumer Defensive
- Industry
- Discount Stores
- Stock Style Box
- Mid Value
- Total Number of Employees
- 170,000
- Website
- https://www.dollargeneral.com
Competitors
Competitors
- Target Corp TGT
- Walmart Inc WMT
- Dollar Tree Inc DLTR
Valuation
Valuation
| Metric | DG | TGT | WMT |
|---|---|---|---|
Price/Earnings (Normalized) | 18.74 | 16.40 | 29.25 |
Price/Book Value | 4.04 | 4.88 | 6.72 |
Price/Sales | 0.72 | 0.63 | 0.84 |
Price/Cash Flow | 11.06 | 8.90 | 15.78 |
Price/Earnings
DG
TGT
WMT
Financial Strength
Financial Strength
| Metric | DG | TGT | WMT |
|---|---|---|---|
Quick Ratio | 0.11 | 0.18 | 0.19 |
Current Ratio | 1.22 | 0.86 | 0.80 |
Interest Coverage | 7.12 | 12.52 | 10.38 |
Quick Ratio
DG
TGT
WMT
Profitability
Profitability
| Metric | DG | TGT | WMT |
|---|---|---|---|
Return on Assets (Normalized) | 5.07% | 7.99% | 7.77% |
Return on Equity (Normalized) | 23.87% | 34.30% | 24.81% |
Return on Invested Capital (Normalized) | 7.31% | 14.78% | 14.14% |
Return on Assets
DG
TGT
WMT
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Discount Stores Industry Comparables
Discount Stores Industry Comparables
| 1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| Walmart Inc WMT | Nrlctzc | Sns | $546.2 Bil | |||
| Costco Wholesale Corp COST | Xxfpflqx | Rnt | $376.1 Bil | |||
| Target Corp TGT | Dhgchnwtt | Qrpkb | $67.6 Bil | |||
| Wal - Mart de Mexico SAB de CV ADR WMMVY | — | Vgmg | $59.0 Bil | |||
| Wal - Mart de Mexico SAB de CV WMMVF | — | Hlwd | $59.0 Bil | |||
| Dollarama Inc DLMAF | — | Bbcm | $25.7 Bil | |||
| Dollar Tree Inc DLTR | Yskjrdgnj | Szd | $23.0 Bil | |||
| Pan Pacific International Holdings Corp ADR DQJCY | — | Mjd | $14.1 Bil | |||
| BJ's Wholesale Club Holdings Inc BJ | — | Mqwczx | $11.7 Bil |
