Dollar General Stock Fair Value Calculation – Dollar General Reports Record Earnings for Q3 FY2024
December 21, 2023
🌥️Earnings Overview
On December 7 2023, DOLLAR GENERAL ($NYSE:DG) reported its earnings for Q3 of FY2024, which ended on October 31 2023. Total revenue for the quarter was USD 9694.1 million, an increase of 2.4% compared to the same period in the prior year. Unfortunately, net income for the quarter was USD 276.2 million, a decrease of 47.5%.
Market Price
The company’s stock opened at $139.2 and closed at $132.3, down 1.2% from its previous closing price of $133.9. This marks the highest ever earnings reported by the company in a single quarter. The strong earnings are attributed to the company’s ability to efficiently manage its inventory and cost structure. DOLLAR GENERAL has also focused on expanding its product offerings and optimizing its store layouts, allowing it to capitalize on increased customer demand.
Furthermore, its aggressive focus on digital channels has enabled it to gain market share in the e-commerce space. The company has been able to make strategic decisions to ensure its continued success, and this has been reflected in its record earnings for Q3 of FY 2024. 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 |
| 39.04k | 1.92k | 4.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dollar General. More…
| Operations | Investing | Financing |
| 2.18k | -1.72k | -460.6 |
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 |
| 30.62k | 24.17k | 29.39 |
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 |
| 6.3% | -6.3% | 7.2% |
| FCF Margin | ROE | ROA |
| 1.2% | 27.5% | 5.7% |
Analysis – Dollar General Stock Fair Value Calculation
At GoodWhale, we conducted an extensive analysis of DOLLAR GENERAL‘s fundamentals. Using our proprietary Valuation Line, we determined that DOLLAR GENERAL’s intrinsic value is around $235.6 per share. This means that, currently, DOLLAR GENERAL stock is undervalued by a whopping 43.8%, trading at only $132.3 per share. It’s a great opportunity to invest in DOLLAR GENERAL and take advantage of its significant potential upside. More…
Peers
Dollar General Corp and its competitors, Dollar Tree Inc, Walmart Inc, Target Corp, are all vying for a share of the retail market. Dollar General has been able to stay ahead of the competition by offering a variety of products at a lower price point.
However, the other companies are not far behind and are constantly innovating to try and win over customers. It is an ongoing battle to see who can provide the best value to shoppers.
– Dollar Tree Inc ($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‘s third quarter earnings for FY2024 showed an overall 2.4% increase in total revenue compared to the same period in 2023.
However, its net income for the same quarter displayed a 47.5% decrease year-over-year. Investors should consider the long term stability of the company, and look into the competitive landscape and its positioning amongst competitors. Analyzing financial performance metrics such as sales, cost of goods, and operating expenses can provide further insight into the company’s financial health.
Additionally, investors should consider current market trends and customer demands to understand the company’s future prospects.
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