Dollar General Stock Fair Value – Morgan Stanley Pulls Bull Rating on Dollar General, Stocks Dip
June 25, 2023
🌥️Trending News
Morgan Stanley’s recent withdrawal of its bullish rating on Dollar General ($NYSE:DG) has caused the company’s stock to dip. The company sells a variety of items, from housewares and clothing to food and health & beauty products. Dollar General is known for providing everyday low prices and great value, which makes it popular among budget-conscious shoppers. Morgan Stanley’s decision to pull its bullish rating has caused some concern among investors as it could signal a potential decline in the company’s stock.
However, many analysts remain positive about the future of Dollar General, citing its strong financials and diverse product offerings as key growth drivers.
Stock Price
On Monday, Morgan Stanley downgraded their bull rating on DOLLAR GENERAL, sending the company’s stocks tumbling. DOLLAR GENERAL opened at $163.9 and closed at $158.9, a 4.4% drop from the previous closing price of 166.1. The downgrade reflected Morgan Stanley’s current view of the company.
Investor sentiment towards DOLLAR GENERAL has been low as of late, and the downgrade may have further decreased investor confidence in the company’s potential to generate profits. Despite the drop in stock prices, DOLLAR GENERAL remains committed to providing lower-priced items to shoppers and continuing to grow its market share in the discount retail space. 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 |
| 38.44k | 2.38k | 6.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dollar General. More…
| Operations | Investing | Financing |
| 1.73k | -1.64k | -112.6 |
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 |
| 29.8k | 23.87k | 27.06 |
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 |
| 9.1% | 7.7% | 8.6% |
| FCF Margin | ROE | ROA |
| 0.2% | 36.2% | 7.0% |
Analysis – Dollar General Stock Fair Value
At GoodWhale, we have done an analysis of DOLLAR GENERAL‘s wellbeing. Our proprietary Valuation Line has calculated an intrinsic value of DOLLAR GENERAL share to be around $258.1. However, the current stock price of DOLLAR GENERAL is only $158.9, which is significantly lower than the intrinsic value, resulting in a 38.4% undervaluation. We believe this presents a prime opportunity for investors to capitalize on the current market conditions. More…
Peers
Dollar General Corp and its competitors, Dollar Tree Inc, Walmart Inc, Target Corp, are all vying for a share of the retail market. Dollar General has been able to stay ahead of the competition by offering a variety of products at a lower price point.
However, the other companies are not far behind and are constantly innovating to try and win over customers. It is an ongoing battle to see who can provide the best value to shoppers.
– Dollar Tree Inc ($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 is a popular discount retailer which has experienced recent success in the stock market.
However, this success was recently challenged when Morgan Stanley removed its ‘bull’ rating on the company, leading to a dip in the stock price. This move has caused investors to take a closer look at Dollar General’s prospects and analyse the potential risks and rewards of investing in the company. An important factor to consider is the company’s financial performance, which has seen steady growth in recent years. This, along with a strong market position and a diversified product offering, are all factors that could make Dollar General an attractive option for investors.
Additionally, analysts should consider the current macroeconomic environment and if there are any potential headwinds that could impact the stock in the near future.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
