This Score-Card analysis of Dollar General Corp (DG) attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.
In summary, a company to have an overall score close to 100% must have the following characteristics:
- Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Gross Profit, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
- Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
- The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.
The overall score ranges from 0% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +70% can be considered good.
The purpose of this analysis is purely informative.
Score-Card analysis of Dollar General Corp (DG)
- Overall Score: +70,2%
- DG has outperformed the S&P 500 index since the beginning of the year.
- The excellent score is due to continuous growth in recent years with Revenue up 33.8% compared to 3 years ago (Quarterly Revenue + 8.9% compared to 12 months ago).
- Despite a decline in the Operating Margin over the past 3 years, the Net Margin improved by 5.7%, leading to a 41.5% increase in Net Income in the same period (Quarterly Net Income + 9.4% compared to 12 months ago).
- Analysts expect growth to continue in the coming years, estimating an annual EPS growth of 10.8% for the next 5 years. Furthermore, they consider DG undervalued by 7.8% at current prices.
Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee.
The overall score of DG is 70% .
In the last 6 months, DG has overperformed the S&P500 index by 8,0% and analysts believe the company is undervalued by 7,8% .
In the last quarter, the company reported revenue of 6991,4 million, up by 8,9% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 27246,2 million, up by 33,8% in the last 3 years.
DG reported an operating income of 491,4 million in the last quarter, an improvement of 11,2% compared to the same quarter 12 months earlier, also reporting an improvement of 2,0% in the operating margin. Considering the sum of the last four quarters (TTM), DG reports an operating income of 2219,9 Million , a growth of 14,4% compared to three years ago and a reduction of -14,5% in the operating margin.
DG reported a net income of 365,5 million in the last quarter, an improvement of 9,4% compared to the same quarter 12 months earlier, also reporting an improvement of 0,4% in the net margin. The TTM net income is 1648,1 million , a growth of 41,5% compared to three years ago and the net margin has improved by 5,7% .
In the next quarter, analysts expect growth in EPS (Earnings Per Share) of 9,2% and a growth in revenue of 7,5% . Furthermore, they expect an annual growth of DG EPS by 10,8% for the next 5 years.
In the last quarter, DG reported better EPS than analysts’ expectations and the stock price reacted by increasing by 1,0% .
Finally, in the last quarter the Hedge Funds have decreased their positions by 18.6k shares.
Want to know what other types of analysis are available on BullDude.com?
Click here to find out !!!
This analysis considers numerical data to understand whether a company is good or not based on business growth and whether analysts are positive about it.
If you are interested in identifying a potential entry point, I am waiting for you here to discover the best “buy the dip”, the best companies that follow the “Buy High, Sell Higher” theory or the best chart patterns of the day.
Alternatively, if you are interested in statistical analysis before the publication of the earnings report, an analysis of the quarterly report results released or an analysis of the top 20 companies that release the earnings report during the week, I am waiting for you here.
Do you want to stay updated on all the analysis published?Follow @BulldudeC
Sources & additional info
*The comparison with the S&P 500 index (black line) is visible inside the graph.
*Information updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com
*Company information from wikipedia.com
DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment. Stocks trading involves substantial risk of loss and is not suitable for every investor. Trade responsibly.