Added to YB: 2025-01-27
Pitch date: 2025-01-24
DG [bullish]
Dollar General Corporation
+86.25%
current return
Author Info
The Value Road is a deep value investor that's interested in post bankruptcy, NAV, and undervalued micro and nano-cap stocks. I only invest in companies that have layers of value behind them, usually with little or no debt. 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
$29.1B
Pitch Price
$71.52
Price Target
107.95 (-19%)
Dividend
1.78%
EV/EBITDA
8.08
P/E
22.86
EV/Sales
1.05
Sector
Consumer Staples Distribution and Retail
Category
turnaround
Dollar General Shares Currently Priced at a 10 Year Low
DG: Trading at decade low. Margins slipped post-COVID, stock fell excessively. If EBIT margins return to 9% (pre-COVID) & capex stays at 3.6% of revenue, $108 price target. Focusing on inventory reduction to improve shrink, transport costs, markdowns. Slowing store openings. DCF shows $90-$108 potential if margins recover. Overly bearish sentiment may flip.
Read full article (3 min)