DG
Dollar General Corporation
Consumer
04/21/2014
Presented
| Date | 04/16/2014 |
| Price | $54.88 |
| Market Cap | $17.00B |
| Ent Value | $19.33B |
| P/E Ratio | 21.34x |
| Book Value | $17.61 |
| Div Yield | N/A |
| Shares O/S | 309.97M |
| Ave Daily Vol | 4,420,000 |
| Short Int | 2.57% |
Current
| Price | $80.57 |
| Market Cap | $17.72B |
| Dollar General Corporation, a discount retailer, provides merchandise products in the United States. The company offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, and laundry and other home cleaning supplies; packaged food products comprising cereals, canned soups and vegetables, condiments, spices, sugar, and flour; perishables consisting of milk, eggs, bread, frozen meals, beer, and wine; snacks, such as candy, cookies, crackers, salty snacks, and carbonated beverages; pet products comprising pet supplies and pet food; tobacco products; and health and beauty products, including over-the-counter medicines, as well as personal care products, such as soap, body wash, shampoo, dental hygiene, and foot care products. It also offers 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 provides apparel for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories. As of February 28, 2014, it operated 11,215 stores located 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 describes shares of Dollar General as stuck in a sort of “deal hell”, with the stock essentially having done nothing over the past nine months since speculation about a potential merger with Family Dollar (FDO) first broke. But with DG - one of the highest quality businesses in the retail space - currently trading at a below market 2015 earnings multiple, the presenter reasons that the situation is likely to come to a head over the next three months. Given their near-rock bottom valuations, he sees shares as a very low-risk play at current levels.
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