DG

Dollar General Corp.

Consumer


Presented:12/05/2023
Price:$133.39
Cap:$29.28B
Current Price:$80.57
Cap:$17.72B

Presented

Date12/05/2023
Price$133.39
Market Cap$29.28B
Ent Value$43.93B
P/E Ratio15.36x
Book Value$29.40
Div Yield1.74%
Shares O/S219.48M
Ave Daily Vol3,809,913
Short Int2.70%

Current

Price$80.57
Market Cap$17.72B
Dollar General Corp. engages in the operation of merchandise stores. Its offerings include food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares, and seasonal items. It sells brands including Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark, Kellogg's, General Mills, and PepsiCo. The company was founded by J. L. Turner and Hurley Calister Turner Sr. in 1939 and is headquartered in Goodlettsville, TN.

Publicly traded companies mentioned herein: Dollar General Corp (DG), Dollar Tree Inc (DLTR), Walmart Inc (WMT)

Highlights

The presenter is long shares of Dollar General Corp (DG), believing that the company is not structurally impaired and can fix recent issues with investments in labor and the supply chain. Going forward, he underwrites 7% EBIT margins (vs. the ~8.3% historically) to account for the necessary investments, as well as slightly slower store growth than the historical average. Based on these assumptions, he models ~$12 of EPS two years out (vs. consensus $8.51) and an earnings multiple just below the historical average given the lower store growth, leading to 50% – 70% upside from the current $134 share price.

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Idea Discussion

Commentor 1 - 2 weeks ago

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