New Lifetime High For Dollar General (DG)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Dollar General as such a stock due to the following factors:
- DG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $267.1 million.
- DG has traded 93,936 shares today.
- DG is trading at a new lifetime high.
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More details on DG:
Dollar General Corporation, a discount retailer, provides merchandise products in the United States. DG has a PE ratio of 21.3. Currently there are 9 analysts that rate Dollar General a buy, 1 analyst rates it a sell, and 8 rate it a hold.
The average volume for Dollar General has been 4.6 million shares per day over the past 30 days. Dollar General has a market cap of $21.6 billion and is part of the services sector and retail industry. The stock has a beta of 1.26 and a short float of 1.3% with 1.16 days to cover. Shares are up 1.1% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Dollar General as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- DG's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 7.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- DOLLAR GENERAL CORP has improved earnings per share by 5.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DOLLAR GENERAL CORP increased its bottom line by earning $3.17 versus $2.86 in the prior year. This year, the market expects an improvement in earnings ($3.50 versus $3.17).
- Net operating cash flow has increased to $353.62 million or 27.91% when compared to the same quarter last year. In addition, DOLLAR GENERAL CORP has also modestly surpassed the industry average cash flow growth rate of 27.86%.
- The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.11 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full Dollar General Ratings Report.
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