Is Dollar General Corp (DG) Stock Over or Undervalued? (2024)

FAQs

Is Dollar General stock undervalued? ›

An Intrinsic Calculation For Dollar General Corporation (NYSE:DG) Suggests It's 23% Undervalued.

Dollar General has 9.99% upside potential, based on the analysts' average price target. Is DG a Buy, Sell or Hold? Dollar General has a consensus rating of Moderate Buy which is based on 11 buy ratings, 9 hold ratings and 1 sell ratings.

Based on short-term price targets offered by 24 analysts, the average price target for Dollar General comes to $151.54. The forecasts range from a low of $96.00 to a high of $175.00. The average price target represents an increase of 8.93% from the last closing price of $139.12.

Fiscal Year 2024 Second Quarter Financial Guidance

For the 13-week quarter ending August 2, 2024 , the Company currently expects same-store sales growth in the low 2% range, and Diluted EPS in the range of $1.70 to $1.85 .

The company's sales surged early in the COVID-19 pandemic, but have mostly plateaued since. It seems as though Dollar General's management expected sales to continue to surge, which resulted in the company holding too much inventory. Those overstocked shelves have led to lower profits.

According to our current DG stock forecast, the value of Dollar General shares will drop by -2.94% and reach $ 131.96 per share by June 8, 2024. Per our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 39 (Fear).

Largest shareholders include Vanguard Group Inc, Capital International Investors, Price T Rowe Associates Inc /md/, BlackRock Inc., Capital World Investors, State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, ABALX - AMERICAN BALANCED FUND Class A, VFINX - Vanguard 500 Index Fund Investor ...

An investment group consisting of affiliates of Kohlberg Kravis Roberts (KKR), GS Capital Partners (an affiliate of Goldman Sachs), Citigroup Private Equity, and other co-investors completed an acquisition of Dollar General Corporation for $6.9 billion.

Is Dollar General in debt? ›

Total debt on the balance sheet as of January 2024 : $18.09 B. According to Dollar General's latest financial reports the company's total debt is $18.09 B. A company's total debt is the sum of all current and non-current debts.

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 $18.75M.

Dollar General forecast 2024 sales to grow between 6.0% and 6.7%, above analysts' estimate of 4.4% growth to $40.33 billion, according to LSEG data.

Dollar General Balance Sheet Health

Dollar General has a total shareholder equity of $6.7B and total debt of $7.0B, which brings its debt-to-equity ratio to 103.7%. Its total assets and total liabilities are $30.8B and $24.0B respectively. Dollar General's EBIT is $2.5B making its interest coverage ratio 7.5.

Today's price represents a nicer-than-normal valuation on this very high-quality name. Reverse engineering the projected $2.44 annual dividend for 2024 to a normalized 1.04% return suggests DG could rebound to as high as $234 by this time next winter.

Berkshire Hathaway's Dollar General Stake

Warren Buffett started to build up the position in Dollar General in Q2 2011 and continued to invest until Q3 2011. Since then they sold 4.5 Million shares.