Fundamental analysis: Dollar General Corporation (DG)

Awarener score: 7.3

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Superb) and growth (Average), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 8.0

Business has been growing at a low pace. It's been similar to peer companies.
Dollar General Corporation business trend is extremely stable, which is best. It looks slightly worse than rivals.

Margins score: 6.3

DG profit margins -on goods and services sold- are usually hardly sufficient. They stand well ranked against rival companies.
Business profit on sales tends to be good. It's great when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain excellent in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still better than most similar companies.
Profits -before income taxes- are usually good considering total sales, and remain great when measured against rivals.
Total net profit tends to be good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 5.1

Dollar General Corporation profit -on goods and services sold- has been growing at a low pace. It's been excellent in relation to competitors.
In recent years, earnings -on operations- have been growing at a low step, which has been somewhat better than comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a low pace, which compares encouraging in relation to peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at a slow tempo. It turns to be in good shape compared to similar stocks.
In past years, profits -before income taxes- grew at a low speed. It was slightly better than rivals.
In the previous years, growth on total net profit has been low, and below average when measured against peer companies.
Earnings per share have grown at a normal rhythm in past years. It's been close to average when compared to industry peers.

Miscellaneous score: 5.0

DG had to pay some income taxes in relation to profits made in the past years. It's been well ranked against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.0

Dollar General Corporation usually gets excellent returns on the resources it controls. It proves great when measured against peer firms.
The company normally gets very good proceeds -on the resources directly invested in the business-. They remain lacking compared to similar companies.
Profitability -in relation to owned resources- is usually paramount. It ranks great when measured against competitors.
In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 6.4

DG usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands great when measured against rival firms.
The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is more than average in relation to industry peers.
In the past twelve months it paid somewhat low dividends, considering the current stock price. It came somewhat worse than competitors.
Has increased dividend payments in the past years. Business prospects may have improved. The company has behaved close to average when compared to similar firms.
Dividend payments usually represent a modest portion of genuine funds generation and should be reasonable safe. Sustainability looks somewhat better than comparable companies.
The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in good shape compared to rivals.
The company uses somewhat more funds to reward investors than it can genuinely generate, so some part of them is paid out of existing cash or by borrowing money, both of which will eventually reach a limit. Either business somewhat improves, or rewards will probably not be sustained at this pace. It still looks weak when measured against competitors.

Balance Sheet score: 4.9

Dollar General Corporation intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be rather normal in relation to similar firms.
Most resources controlled were provided for with financial debt. Creditors have more claims on the company than shareholders. Unless the company is a financial institution that takes deposits, the situation might be very risky. It remains worse than most rival firms.
Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks substantially worse when measured against rivals.
For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's in a very weak position compared to peer firms.
For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is worse than most similar enterprises.
Usually, sales are mostly on cash. It still ranks almost average when measured against peers.
Normally has approximately three months of sales worth in inventory. It comes up as in a very weak position compared to competitors.
On average, it takes higher than four months from the purchase to charging customers. It happens to be mediocre against peers.
On average pays suppliers two months after the purchase. It ranks great when measured against industry peers.
The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's close to average when compared to similar companies.
Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands somewhat worse than rival firms.
Business earnings have usually been reasonable when measured against loans taken. Cutting back reinvesting in the business, it could take more than five years to repay the obligations with current profitability. It ranks substantially worse when measured against comparable enterprises.
Revenues are somewhat low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a weak position compared to similar firms.
Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 5.5

Dollar General Corporation looks expensive in relation to profits and financial position. It happens to be encouraging in relation to competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
In the past twelve months, the company generated some free funds in relation to the stock price, which stands better than most similar companies.
The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still encouraging in relation to industry firms.
In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up a slight improvement compared to peer ventures.
The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks worse than most similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be more or less reasonable, but hardly cheap. It ranks great when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
The relation between the stock price and accounting book value is really high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be more than average in relation to industry peers.
In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still rather normal in relation to peer companies.

Total score: 6.3

Company at a glance: Dollar General Corporation (DG)

Sector, industry: Consumer Defensive, Discount Stores

Market Cap: 36.40 billions

Revenues TTM: 38.44 billions

Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, Midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine. The company's consumable products also comprise snacks, such as candies, cookies, crackers, salty snacks, and carbonated beverages; health and beauty products, including over-the-counter medicines and personal care products, such as soaps, body washes, shampoos, cosmetics, and dental hygiene and foot care products; pet supplies and pet food; and tobacco products. In addition, it offers seasonal products comprising holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, and automotive and home office supplies; and home products that include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, and bed and bath soft goods. Further, the company provides apparel, which comprise casual everyday apparel for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories. As of February 25, 2022, it operated 18,190 stores in 47 states in the United States. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.