Dollar General Stock Intrinsic Value – Dollar General’s Stock Price Drifting Sideways, Mixed Outlook for Early 2023

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Dollar General Stock Intrinsic Value – The stock price of Dollar General ($NYSE:DG) has been relatively stagnant for the past eight months, settling between $218 and $262. This modest growth has surely not rewarded investors in comparison to its peers. Yet, analysts are looking forward to a mixed outlook for early 2023. On one hand, Dollar General may suffer from margin compression due to a larger portion of lower-margin products. On the other, an increase in consumer spending is projected to offset this effect, potentially leading to improved performance in the future.

Although the effects of the pandemic are still uncertain, there is a chance that the steady stock prices of Dollar General could improve in early 2023. Ultimately, it is essential for investors to consider their long-term objectives when evaluating Dollar General’s stock potential. While the potential for profit is there, the risks associated with market volatility may be a deterrent for some. Furthermore, the effects of the pandemic are still unknown, making it difficult to predict how Dollar General and its competitors will fare in the near future. Nevertheless, despite its lackluster performance in recent months, Dollar General could be a company to watch in the months to come.

Share Price

On Wednesday, the stock opened at $230.7 and closed at $232.2, up by 0.3% from the last closing price of $231.4. Despite the sideways trend, analysts remain divided on direction for the stock, with some predicting the price could move higher while others suggest a more bearish outlook. Regardless, investors should remain aware of the potential risks and rewards associated with investing in DOLLAR GENERAL‘s stock going forward. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Dollar General. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Dollar General. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Dollar General. More…

Key Ratios Snapshot

Some of the financial key ratios for Dollar General are shown below. More…

Analysis – Dollar General Stock Intrinsic Value

GoodWhale’s analysis of DOLLAR GENERAL’s wellbeing has shown that its intrinsic value is around $243.0, as determined by our proprietary Valuation Line. This figure is slightly higher than the current stock price, which is traded at $232.2. This price could be considered fair, but it is slightly undervalued by 4.5%. Given the strong market performance of DOLLAR GENERAL, investors may want to take advantage of this opportunity and buy the stock before the price increases. 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

The company mainly operates discount stores and there is evidence that financial performance has been adversely impacted by increased competition and flat same-store sales growth over the past several quarters. The market is expecting modest margins and earnings growth over the next fiscal year, but investors should monitor the competitive landscape for any changes that may affect Dollar General‘s performance. Long-term investors may want to look for more attractive valuations before making any investments in the company.