Dollar General Corp. (DG, Financial), a low-cost retail chain, will release its first-quarter 2017 financial results on June 1.
Dollar General sells a wide range of low-priced household goods in its stores across the U.S.
For the first quarter, analysts forecast Dollar General will report EPS ranging between a low of 95 cents and a high of $1.07, for an average of $1.
Source: Yahoo Finance
The forecasted EPS represents a 2.9% decline from the same quarter one year ago.Ă‚
Analysts estimate Dollar General will close the quarter with an average revenue of $5.59 billion. Estimates range between a low of $5.5 billion and a high of $5.65 billion. The average revenue forecast represents 6.10% growth from first-quarter 2016 revenue.Ă‚
Source: Yahoo Finance
The company had approximately $187.91 million in cash and securities at year-end 2016. The quick ratio of 0.16 is below the industry average of 0.59. The current ratio of 1.40 exceeds the industry average of 1.20.
Total debt amounts to $3.21 billion as of the final quarter of 2016, for a debt-equity ratio of 59.40, which is higher than the industry average of 47.87. The company has an interest coverage ratio of 22.39, which – even though it is much lower than the industry average of 254.47 – indicates Dollar General does not have any trouble paying interest expenses on outstanding debt.
The stock is currently trading around $72.66 per share with a price-earnings (P/E) ratio of 16.47, a price-book (P/B) ratio of 3.71 and a price-sales (P/S) ratio of 0.91.
The forward P/E ratio of 14.80 combined with the earnings forecast of $4.45 per share for the full year suggests the stock is currently slightly overvalued. The stock, however, is trading slightly above its 52-week low of $66.50 per share. The 52-week high price is $96.88 per share.
The analysts’ average target price for Dollar General is $79.80 per share, which represents an upside of 10.11% from the current share price.
As of today, the recommendation rating sits between buy and hold at 2.5 out of 5.
Annually, the stock rose more than 11% over the last five years. For next year, analysts forecast an annual growth of 6.8%.
Disclosure: I have no positions in Dollar General Corp.
