Dollar General Corp (DG) (2024)

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$128.54 −0.99(0.76%)

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Company Report

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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.

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DG is trading at a 497% premium.

Price

$128.54

Fair Value

$796.00

Uncertainty

Medium

1-Star Price
$932.12

5-Star Price
$143.40

Economic Moat
Qlfjc

Capital Allocation
Xjmclssz

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

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  • Dollar General Announces New Dolly Parton Kitchen and Housewares Collection in Stores Nationwide
  • 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

Previous Close Price
$129.53
Day Range

$127.26129.47

52-Week Range

$101.09173.47

Bid/Ask
$125.69/$132.80

Market Cap
$28.27 Bil

Volume/Avg
1.6 Mil/2.5 Mil

Key Statistics

Price/Earnings (Normalized)
18.71

Price/Sales
0.72

Dividend Yield (Trailing)
1.84%

Dividend Yield (Forward)
1.84%

Total Yield
1.84%

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

Competitors

  • Dollar Tree Inc DLTR
  • Target Corp TGT
  • Walmart Inc WMT

Valuation

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Metric

DG

DLTR

TGT

Price/Earnings (Normalized)

18.7117.7516.57

Price/Book Value

4.033.104.93

Price/Sales

0.720.740.64

Price/Cash Flow

11.049.918.99

Price/Earnings

DG

DLTR

TGT

Financial Strength

Metric

DG

DLTR

TGT

Quick Ratio

0.110.130.18

Current Ratio

1.221.280.86

Interest Coverage

7.12−8.3712.52

Quick Ratio

DG

DLTR

TGT

Profitability

Metric

DG

DLTR

TGT

Return on Assets (Normalized)

5.07%5.58%7.99%

Return on Equity (Normalized)

23.87%15.40%34.30%

Return on Invested Capital (Normalized)

7.31%7.29%14.78%

Return on Assets

DG

DLTR

TGT

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Price

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Capital Allocation

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Market Cap

Walmart Inc

WMT

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Costco Wholesale Corp

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Target Corp

TGT

RvqztlsztSwrk$68.3 Bil
Wal - Mart de Mexico SAB de CV ADR

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Zzb$62.1 Bil
Wal - Mart de Mexico SAB de CV

WMMVF

Vpr$62.1 Bil
Dollarama Inc

DLMAF

Ltqh$27.1 Bil
Dollar Tree Inc

DLTR

KhyhmtblNpn$22.4 Bil
Pan Pacific International Holdings Corp ADR

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BJ's Wholesale Club Holdings Inc

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Cpjkls$11.7 Bil

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Dollar General Corp (DG) (2024)

FAQs

Is DG the same as Dollar General? ›

Dollar General has used its abbreviation, the letters "DG", as a store brand for "inexpensive" household products sold through its stores; the brand is in the process of being phased out for most products as of the early 2020s. DG is also the company's NYSE ticker symbol.

Is DG stock a good buy? ›

Out of 12 analysts, 3 (25%) are recommending DG as a Strong Buy, 2 (16.67%) are recommending DG as a Buy, 7 (58.33%) are recommending DG as a Hold, 0 (0%) are recommending DG as a Sell, and 0 (0%) are recommending DG as a Strong Sell. If you're new to stock investing, here's how to buy Dollar General stock.

What is the target price for DG stock? ›

Stock Price Targets
High$170.00
Median$149.25
Low$118.00
Average$149.58
Current Price$128.54

Who is the biggest shareholder of Dollar General? ›

FAQ. Vanguard owns the most shares of Dollar General (DG).

What is Dollar General changing their name to? ›

In an effort to cater to customers who want a more upscale shopping experience, Dollar General is opening retail locations that operate under a different brand. These stores are called pOpshelf, and they're meant to appeal to wealthier and more suburban customers.

Who bought out Dollar General? ›

In 2007, private equity firm Kohlberg Kravis Roberts & Co. (KKR) acquired Dollar General in a leveraged buyout transaction for approximately $6.9 billion. During this period, the company faced significant financial challenges due to a heavy debt burden, declining sales, and increasing competition in the retail sector.

Why invest in Dollar General? ›

The good news for shareholders is that Dollar General is still growing revenue, it's still profitable, and its profits could start rebounding in 2024. When the profit rebound happens, this stock has plenty of upside, and that's why I believe it's a buy today.

Is Dollar General a dividend stock? ›

How much is Dollar General's dividend? DG pays a dividend of $0.59 per share. DG's annual dividend yield is 1.78%.

What is the Dollar General stock price forecast for 2025? ›

Dollar General stock forecast for 2025: $ 142.04 (10.50%) Dollar General stock prediction for 2030: $ 233.99 (82.04%)

Is DG owned by Walmart? ›

No Walmart does not own Dollar General. They are both two separate and independent retail companies. Both trade their stock publicly. Walmart has the ticker symbol WMT.

Should I sell my DG stock? ›

Based on analyst ratings, Dollar General's 12-month average price target is $149.40. Dollar General has 14.82% upside potential, based on the analysts' average price target. Dollar General has a consensus rating of Moderate Buy which is based on 7 buy ratings, 9 hold ratings and 1 sell ratings.

What is the fair value of Dollar General stock? ›

DG Intrinsic Value - Valuation Summary
RangeSelected
Fair Value34.34 - 34.3434.34
P/E90.52 - 120.74105.70
EV/EBITDA65.74 - 123.399.11
EPV68.57 - 96.0982.33
7 more rows

Who is bigger Walmart or Dollar General? ›

Walmart stores are far bigger, but there are fewer of them. There are far more Dollar General stores, but they're much smaller. Both companies sell the same basic consumer goods, though, even if Walmart offers more bigger-ticket items. And yet, the two discounters are performing very differently.

How much did the CEO of Dollar General make? ›

Dollar General's CEO is Todd Vasos, appointed in Oct 2023, has a tenure of less than a year. total yearly compensation is $8.98M, comprised of 7.3% salary and 92.7% bonuses, including company stock and options. directly owns 0.062% of the company's shares, worth $17.59M.

How many employees does DG have? ›

As of February 3, 2023, Dollar General employed approximately 170,000 people throughout the United States. Meanwhile, its main competitor, Dollar Tree, employed roughly 200,000 thousand people in the United States and Canada as of 2021.

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