Report
Valens Research

DG - Embedded Expectations Analysis - 2020 02 12

 Dollar General Corporation (DG:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 23.8x Uniform P/E At these levels, the market has stable expectations for the firm, and management is confident about their non-consumable initiative expansion, their inventory, and Fast Track
 Specifically, management is confident they plan to accelerate the rollout of their non-consumable initiative to 5,000 stores by the end of 2020 and that their private brands are an important area of focus. In addition, they are confident their inventory gets refreshed multiple times a year and that they are pleased with the adoption of and customer feedback from their Fast Track self-checkout tests
Underlying
Dollar General Corporation

Dollar General is a discount retailer. The company's consumables products includes paper and cleaning products, packaged food, perishables, snacks, health and beauty, pet, and tobacco products. The company's seasonal products include decorations, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, automotive and home office supplies. The company's home products include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, bed and bath soft goods. The company's apparel includes casual everyday apparel, as well as socks, underwear, disposable diapers, shoes and accessories.

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Valens Research
Valens Research

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