DG
Dollar General Corporation
Consumer
11/27/2013
Presented
| Date | 11/22/2013 |
| Price | $57.94 |
| Market Cap | $18.70B |
| Ent Value | $21.46B |
| P/E Ratio | 21.52x |
| Book Value | $17.61 |
| Div Yield | N/A |
| Shares O/S | 323.61M |
| Ave Daily Vol | 255,000 |
| Short Int | 1.67% |
Current
| Price | $80.57 |
| Market Cap | $17.72B |
| Dollar General Corporation, a discount retailer, engages in the provision of various merchandise products in the United States. The company offers various consumable products, including paper and cleaning products, such as paper towels, bath tissue, paper dinnerware, trash and storage bags, laundry, and other home cleaning supplies; packaged food, comprising cereals, canned soups and vegetables, condiments, spices, sugar, and flour; perishables consisting of milk, eggs, bread, frozen meals, beer, and wine; snacks that include candies, cookies, crackers, salty snacks, and carbonated beverages; over-the-counter medicines and personal care products, such as soap, body wash, shampoo, dental hygiene and foot care products; and pet supplies and pet food products. It also provides seasonal products, including decorations, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, automotive, and home office supplies; and home products comprising kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, bed, and bath soft goods. In addition, the company offers casual everyday apparel for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories. As of October 5, 2013, it operated 11,000 stores in 40 states. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee. |
Highlights
The presenter views dollar stores as a retail format in continued transition. Once viewed largely as liquidation centers, dollar stores today have become part of a landscape of neighborhood stores that consumers frequent on an increasingly regular basis. With operating margins already at 10% and fully adjusted returns on capital of 12-13%, some wonder how much more efficiently and profitably Dollar General can be run. The presenter, however, believes shares still have meaningful upside potential from here on a standalone basis, and look potentially even more promising in the event of a long-speculated merger with competitor Family Dollar (FDO).
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