Price to Operating Profit (P/OP)
since 2010
Calculation
Dollar General Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating profit1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 25, 2024 | 13.54 | = | 150.78 | ÷ | 11.14 | 11.14 | = | 2,446,300 | ÷ | 219,671,316 | |
| Mar 24, 2023 | 13.55 | = | 205.81 | ÷ | 15.19 | 15.19 | = | 3,328,302 | ÷ | 219,108,477 | |
| Mar 18, 2022 | 16.32 | = | 229.63 | ÷ | 14.07 | 14.07 | = | 3,220,675 | ÷ | 228,868,368 | |
| Mar 19, 2021 | 12.64 | = | 187.78 | ÷ | 14.86 | 14.86 | = | 3,554,765 | ÷ | 239,264,252 | |
| Mar 19, 2020 | 15.65 | = | 143.00 | ÷ | 9.14 | 9.14 | = | 2,302,304 | ÷ | 251,941,312 | |
| Mar 22, 2019 | 14.41 | = | 117.47 | ÷ | 8.15 | 8.15 | = | 2,116,306 | ÷ | 259,518,801 | |
| Mar 23, 2018 | 12.05 | = | 90.06 | ÷ | 7.47 | 7.47 | = | 2,007,818 | ÷ | 268,741,400 | |
| Mar 24, 2017 | 9.26 | = | 69.48 | ÷ | 7.50 | 7.50 | = | 2,063,449 | ÷ | 275,095,294 | |
| Mar 22, 2016 | 12.39 | = | 83.90 | ÷ | 6.77 | 6.77 | = | 1,940,294 | ÷ | 286,468,872 | |
| Mar 20, 2015 | 13.00 | = | 75.78 | ÷ | 5.83 | 5.83 | = | 1,769,093 | ÷ | 303,415,449 | |
| Mar 20, 2014 | 10.40 | = | 57.58 | ÷ | 5.54 | 5.54 | = | 1,736,185 | ÷ | 313,596,983 | |
| Mar 25, 2013 | 10.09 | = | 51.08 | ÷ | 5.06 | 5.06 | = | 1,655,276 | ÷ | 327,091,344 | |
| Mar 22, 2012 | 10.46 | = | 46.14 | ÷ | 4.41 | 4.41 | = | 1,490,804 | ÷ | 338,091,175 | |
| Mar 22, 2011 | 8.27 | = | 30.84 | ÷ | 3.73 | 3.73 | = | 1,274,065 | ÷ | 341,521,858 | |
| Mar 31, 2010 | 9.03 | = | 25.25 | ÷ | 2.80 | 2.80 | = | 953,258 | ÷ | 340,816,996 |
Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01), 10-K (reporting date: 2018-02-02), 10-K (reporting date: 2017-02-03), 10-K (reporting date: 2016-01-29), 10-K (reporting date: 2015-01-30), 10-K (reporting date: 2014-01-31), 10-K (reporting date: 2013-02-01), 10-K (reporting date: 2012-02-03), 10-K (reporting date: 2011-01-28), 10-K (reporting date: 2010-01-29).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Dollar General Corp. Annual Report.
The financial trajectory between 2010 and 2024 is characterized by a prolonged period of growth in both equity valuation and operational profitability, followed by a recent contraction. A general upward trend in share price and operating profit per share was maintained for over a decade, though the valuation multiple shifted significantly over the observed period.
- Share Price Performance
- An aggressive appreciation in share price is observed from 2010 through 2022, rising from 25.25 USD to a peak of 229.63 USD. This represents a substantial increase in market capitalization before a correction occurred, with the price receding to 150.78 USD by March 2024.
- Operating Profit per Share Growth
- Operating profit per share demonstrated consistent growth for most of the period, increasing from 2.80 USD in 2010 to a peak of 15.19 USD in 2023. A notable acceleration occurred between 2020 and 2021, where profit jumped from 9.14 USD to 14.86 USD. However, a significant decline is noted in the final year, with profit dropping to 11.14 USD in 2024.
- Price to Operating Profit (P/OP) Ratio Trends
- The P/OP ratio remained relatively stable between 8.27 and 10.46 from 2010 to 2014, indicating a consistent valuation baseline. A transition to a higher valuation regime occurred after 2015, with the ratio peaking at 16.32 in 2022. This suggests a period of increased market optimism or a higher premium attributed to the company's operating earnings. In the final two years, the ratio stabilized around 13.54, reflecting a moderation in valuation despite the decline in both share price and operating profit.
The correlation between share price and operating profit remained positive for the majority of the timeline. However, the divergence in 2024, where both metrics declined, indicates a shift in the company's financial momentum. The expansion of the P/OP ratio over the long term suggests that the market became willing to pay a higher multiple for each dollar of operating profit as the company scaled.
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Comparison to Competitors
Dollar General Corp., P/OP, long-term trends, comparison to competitors
| Dollar General Corp. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Mar 25, 2024 | 13.54 | 43.38 | 13.48 | 18.10 |
| Mar 24, 2023 | 13.55 | 30.86 | 19.56 | 18.40 |
| Mar 18, 2022 | 16.32 | 27.28 | 11.17 | 15.43 |
| Mar 19, 2021 | 12.64 | 29.60 | 13.62 | 16.46 |
| Mar 19, 2020 | 15.65 | 29.47 | 11.35 | 15.69 |
| Mar 22, 2019 | 14.41 | 27.62 | 9.69 | 12.70 |
| Mar 23, 2018 | 12.05 | 21.34 | 8.83 | 12.85 |
| Mar 24, 2017 | 9.26 | 16.75 | 6.12 | 9.61 |
| Mar 22, 2016 | 12.39 | 17.91 | 8.88 | 8.97 |
| Mar 20, 2015 | 13.00 | 18.09 | 11.20 | 9.59 |
| Mar 20, 2014 | 10.40 | 16.90 | 8.89 | 9.15 |
| Mar 25, 2013 | 10.09 | 16.80 | 8.18 | 8.85 |
| Mar 22, 2012 | 10.46 | 14.86 | 7.38 | 7.83 |
| Mar 22, 2011 | 8.27 | 14.53 | 6.80 | 7.16 |
| Mar 31, 2010 | 9.03 | 13.16 | 8.40 | 8.78 |
Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01), 10-K (reporting date: 2018-02-02), 10-K (reporting date: 2017-02-03), 10-K (reporting date: 2016-01-29), 10-K (reporting date: 2015-01-30), 10-K (reporting date: 2014-01-31), 10-K (reporting date: 2013-02-01), 10-K (reporting date: 2012-02-03), 10-K (reporting date: 2011-01-28), 10-K (reporting date: 2010-01-29).