Dollar General Intrinsic Stock Value – Dollar General Reports Strong Earnings Results for FY2024 Q2
September 6, 2023
☀️Earnings Overview
Dollar General ($NYSE:DG) reported its results for the second quarter of FY2024, ending on July 31 2023, on August 31 2023. The company’s total revenue for the quarter was USD 9796.2 million, representing a 3.9% increase compared to the same quarter last year. However, reported net income was down 30.9%, amounting to USD 468.8 million.
Market Price
Dollar General, the discount retailer, released its financial results for the second quarter of FY2024 on Thursday. The company reported strong earnings results, surpassing analyst expectations. On Thursday, DOLLAR GENERAL stock opened at $128.6 and closed at $138.5, representing a 12.2% plunge from its last closing price of 157.7. This was driven by an increase in both average ticket size and customer traffic.
Additionally, DOLLAR GENERAL also reported that its online sales more than doubled year-over-year during the quarter, further driving its strong earnings performance. Overall, DOLLAR GENERAL reported strong earnings results for the second quarter of FY2024. Additionally, its online sales more than doubled year-over-year during the quarter, further boosting its strong performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dollar General. More…
| Total Revenues | Net Income | Net Margin |
| 38.81k | 2.17k | 5.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dollar General. More…
| Operations | Investing | Financing |
| 1.76k | -1.66k | -73.08 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dollar General. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 30.4k | 24.1k | 28.71 |
Key Ratios Snapshot
Some of the financial key ratios for Dollar General are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.4% | -0.2% | 8.0% |
| FCF Margin | ROE | ROA |
| 0.2% | 31.7% | 6.4% |
Analysis – Dollar General Intrinsic Stock Value
GoodWhale has conducted an in-depth analysis of DOLLAR GENERAL‘s wellbeing and we believe that the intrinsic value of DOLLAR GENERAL’s share is around $251.6, which we have calculated using our proprietary Valuation Line. This means that DOLLAR GENERAL is currently undervalued by 44.9%, as it’s stock is trading at $138.5. We believe that this is a great opportunity for investors looking to get in on a solid company with great potential for growth. More…
Peers
Dollar General Corp and its competitors, Dollar Tree Inc, Walmart Inc, Target Corp, are all vying for a share of the retail market. Dollar General has been able to stay ahead of the competition by offering a variety of products at a lower price point.
However, the other companies are not far behind and are constantly innovating to try and win over customers. It is an ongoing battle to see who can provide the best value to shoppers.
– Dollar Tree Inc ($NASDAQ:DLTR)
Dollar Tree is a company that operates at a low margin, high volume business model. The company offers a wide variety of merchandise at a low price point of $1.00. The company has a market cap of $35.49B as of 2022 and a ROE of 15.97%. The company has been able to grow its earnings at a double-digit rate over the past few years.
– Walmart Inc ($NYSE:WMT)
Walmart Inc is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. Headquartered in Bentonville, Arkansas, the company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. As of January 31, 2020, Walmart has 11,484 stores and clubs in 27 countries, operating under 55 different names. The company operates under the name Walmart in the United States and Canada, as Walmart de México y Centroamérica in Mexico and Central America, as Asda in the United Kingdom, as the Seiyu Group in Japan, and as Best Price in India. It has wholly owned operations in Argentina, Chile, Canada, and South Africa. Since August 2018, Walmart only holds a minority stake in Walmart Brasil, with 20% of the company’s shares, and private equity firm Advent International holding 80% ownership of the company.
– Target Corp ($NYSE:TGT)
Target Corp is a large retail company with a market cap of 75.6B as of 2022. The company has a return on equity of 34.09%. Target Corp is a retailer that sells a variety of products including clothing, electronics, and home goods. The company has over 1,800 stores in the United States and also has an online store. Target is a publicly traded company and its ticker symbol is TGT.
Summary
Dollar General reported its financial results for the second quarter of fiscal year 2024 on August 31, 2023. Total revenue grew by 3.9% year-over-year to USD 9796.2 million; however, net income decreased by 30.9% to USD 468.8 million from the same period last year. Following the announcement, the company’s stock price declined.
Investors may want to take a closer look at Dollar General’s financials to gain insight into their investment opportunity. Analyzing the company’s recent performance and potential risks could help investors make an informed decision about whether or not to invest in Dollar General.
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