Added to YB: 2023-09-25
Pitch date: 2023-09-24
DG [bullish]
Dollar General Corporation
+3.4%
current return
Author Info
Under the Hood is a private investor (ex-NYSE, Bridgewater, Alliance Bernstein) writing about stocks. Sign up for their newsletter.
Company Info
Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States.
Market Cap
$23.1B
Pitch Price
$101.65
Price Target
N/A
Dividend
2.25%
EV/EBITDA
6.61
P/E
15.34
EV/Sales
0.88
Sector
Consumer Staples Distribution and Retail
Category
value
Dollar General: a 20% CAGR Earnings Compounder priced at 11x LTM P/E
DG: 20% EPS CAGR '09-'22 ($1.05→$10.73), now 11x P/E after giving back 150% gain since mid-'22. Serves <$50k income households in rural areas (<20k pop), 80% of 18k stores. Unit economics: $2M avg sales, 9% op margin. Growth levers: 7.5% store expansion (slowing), 7-8% SSS, 3.8% buyback. Risk: nearing 25k store ceiling, margin pressure as Dreiling (architect CEO '08-'15) now runs competitor Dollar Tree/Family Dollar.
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