Dollar General Corporation ($DG) Earnings (Q1 FY22)

 Dollar General Corporation ($DG) Earnings and Opinion:


Dollar General Corporation is a company in the Consumer Defensive sector and operates in the Discount Stores industry. The company is a discount retailer that offers merchandise products with locations all across the United States. Dollar General was founded in 1939 and is currently headquartered in Goodlettsville, Tennessee. The company was first traded on the stock market in 2009.

Dollar General EPS and Revenue (Q1 FY22):

  • EPS of $2.41 beating expectations of $2.31
  • Revenue of $8.75B beating expectations of $8.71B
Dollar General Q1 Highlights:
  • Net sales up 4.2% Y/Y
  • Same Store sales decreased by 0.1%
  • EPS was down 14.5% Y/Y
  • Cash flow from operations of $449.5M
  • Operating Profit of $746.2M
Opinion:
Dollar General is currently soaring in todays trading session after reporting earnings before the market opened this morning. The company reported solid earnings, beating expectations in both the EPS and revenue categories by solid margins. Dollar General was able to increase their sales on a year-over-year basis, while the saw same store sales stay pretty much flat. They also reported some upbeat guidance on the future outlook for earnings throughout the rest of the fiscal year. On the worst side of things, Dollar General saw EPS decrease by 14.5% and operating profit decrease by 17.9%. The stock performance has been relatively well compared to the overall market with the stock only being down a little over 1% in the past 6 months. They have seen things turn around since their last earnings report and are making a strong push. The growth seemed to stray away for a while, but according to forward earnings predictions, it looks like the company could be seeing some growth metrics unusual to its kind. If this goes through, it could be a really big win for the company and will definitely correspond with some growth in the stock price. With a P/E ratio of 21.04 and a P/S ratio of 1.48, it is safe to say that this stock is in a reasonable range. It is not necessarily seen as cheap, but it is definitely not expensive. However, I would watch out for the amount of debt they possess. The do have a good current ratio, but look for how they are able to pay off all their long-term debt. ROE is in a very good position currently and I would like to see them bring up ROA a little bit, but can't complain at where its standing right now. I see a little bit of upside from here, especially if the momentum continues to carry the stock. I am not a huge fan of Dollar General, but I don't think it would be a bad investment at all.


*Information from Dollar General, Yahoo Finance, Google, and CMLVIZ

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