Dollar General Intrinsic Value Calculation – Dollar General Reports Strong Second Quarter Earnings for 2024 Fiscal Year
September 3, 2023
☀️Earnings Overview
On August 31 2023, DOLLAR GENERAL ($NYSE:DG) announced their second quarter of FY2024 earnings results, which ended on July 31 2023. Despite a 3.9% year-over-year rise in total revenue to USD 9796.2 million, the company reported a significant drop of 30.9% in net income to USD 468.8 million year-over-year.
Market Price
On Thursday, DOLLAR GENERAL reported their strong second quarter earnings for 2024 fiscal year. The stock opened at $128.6 and closed at $138.5, representing a plunge of 12.2% from the prior closing price of $157.7. These impressive numbers were mainly due to DOLLAR GENERAL’s investments in digital capabilities, which allowed them to reach more customers and provide more convenience for shoppers. These results reflect the company’s ongoing commitment to providing value for customers and investing in digital capabilities. 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 Value Calculation
At GoodWhale, we have conducted an analysis of Dollar General‘s financials and our proprietary Valuation Line has determined that the intrinsic value of a Dollar General share is approximately $251.8. Currently, Dollar General shares are trading at $138.5 – a 45.0% discount from their true intrinsic value. This indicates that Dollar General stock is currently undervalued and presents investors with the opportunity to invest in a strong company at a discounted rate. More…
Peers
Dollar General Corp and its competitors, Dollar Tree Inc, Walmart Inc, Target Corp, are all vying for a share of the retail market. Dollar General has been able to stay ahead of the competition by offering a variety of products at a lower price point.
However, the other companies are not far behind and are constantly innovating to try and win over customers. It is an ongoing battle to see who can provide the best value to shoppers.
– Dollar Tree Inc ($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
Investors in Dollar General were not happy with the company’s second quarter of FY2024 earnings results. Total revenue was reported as USD 9796.2 million, a 3.9% year-over-year increase, but net income decreased by 30.9% to USD 468.8 million. This news caused the stock price to drop the same day.
While Dollar General may have seen an increase in revenue, investors were disappointed that the company was not able to increase their net income accordingly. As a result, investors should proceed carefully when considering an investment in Dollar General.
Related Posts
Recent Posts
