New Lifetime High Reached By Dollar General Corporation (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 Dollar General Corporation ( DG) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Dollar General Corporation 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 $257.8 million.
  • DG has traded 11.0 million shares today.
  • DG is trading at a new lifetime high.

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More details on DG:

Dollar General Corporation, a discount retailer, engages in the provision of various merchandise products in the United States. DG has a PE ratio of 18.8. Currently there are 9 analysts that rate Dollar General Corporation a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Dollar General Corporation has been 2.5 million shares per day over the past 30 days. Dollar General has a market cap of $18.3 billion and is part of the services sector and retail industry. The stock has a beta of 0.05 and a short float of 2% with 1.38 days to cover. Shares are up 28.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Dollar General Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, 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:
  • The revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 11.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • DOLLAR GENERAL CORP has improved earnings per share by 17.2% 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 $2.86 versus $2.22 in the prior year. This year, the market expects an improvement in earnings ($3.22 versus $2.86).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Multiline Retail industry average, but is less than that of the S&P 500. The net income increased by 14.6% when compared to the same quarter one year prior, going from $214.14 million to $245.48 million.
  • Net operating cash flow has significantly increased by 86.27% to $336.89 million when compared to the same quarter last year. In addition, DOLLAR GENERAL CORP has also vastly surpassed the industry average cash flow growth rate of -12.85%.
  • The current debt-to-equity ratio, 0.55, 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 0.10 is very weak and demonstrates a lack of ability to pay short-term obligations.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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