Dollar General Corp (DG) – Growing rural connections

Dollar General Corp (DG) (Q2FY24)

Stock Performance: Dollar General stock gave returns of -27.5% and -51.6% in the period of three months and one year. The stock has a 52-week high of $260.07 and a 52-week low of $101.09. The stock gave returns of -43.2% and CAGR of -17.2% over a period of three years. The stock had a 200-Day Moving Average of $175.97 and a 50-Day Moving Average of $115.99.

Quarter Performance: In Q2FY24, net sales increased by 3.9% to $9.8bn, compared to $9.43bn in Q2FY23. The net sales increase was primarily driven by positive sales contributions from new stores, partially offset by the slight decline in same-store sales and the impact of store closures.

Guidance: For FY24, DG expects its net sales growth in the range of approximately 1.3% to 3.3%. Diluted EPS growth is expected to be in the range of approximately $7.10 to $8.30 or a decline of 34% to 22% and the tax rate for FY24 is expected to be 22.5%. Capital expenditures, including those related to investments in the Company’s strategic initiatives, are expected in the range of $1.6bn to $1.7bn.

Highlights

DG continued to experience both higher shrink and inventory damages in H1FY24. In Q2FY24, gross profit decreased by 126bps to 31.1%, compared to 32.3% in Q2FY23, primarily reflecting lower inventory markups and increased shrink, markdowns, and inventory damages.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 39

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