Name: Dollar General Corp. (NYSE:DG) | Price to FCFE (P/FCFE)
Creator: Stock Analysis on Net

Free Cash Flow to Equity (FCFE)
P to FCFE Ratio, Current
P to FCFE Ratio, Historical

Dollar General Corp., FCFE calculation

US$ in thousands

12 months ended:	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Net income	1,661,274)	2,415,989)	2,399,232)	2,655,050)	1,712,555)	1,589,472)
Net noncash charges	1,062,513)	1,563,418)	1,024,893)	689,392)	617,093)	590,208)
Change in operating assets and liabilities	(331,989)	(1,994,852)	(558,314)	531,717)	(91,650)	(36,130)
Net cash provided by operating activities	2,391,798)	1,984,555)	2,865,811)	3,876,159)	2,237,998)	2,143,550)
Purchases of property and equipment	(1,700,222)	(1,560,582)	(1,070,460)	(1,027,963)	(784,843)	(734,380)
Proceeds from sales of property and equipment	6,199)	5,236)	4,903)	3,053)	2,358)	2,777)
Issuance of long-term obligations	1,498,260)	2,296,053)	—)	1,494,315)	—)	499,495)
Repayments of long-term obligations	(19,723)	(911,330)	(6,402)	(4,640)	(1,465)	(577,321)
Net increase (decrease) in commercial paper outstanding	(1,501,900)	1,447,600)	54,300)	(425,200)	58,300)	(63,300)
Borrowings under revolving credit facilities	500,000)	—)	—)	300,000)	—)	—)
Repayments of borrowings under revolving credit facilities	(500,000)	—)	—)	(300,000)	—)	—)
Costs associated with issuance of debt	(12,438)	(16,925)	(2,268)	(13,574)	(1,675)	(4,384)
Free cash flow to equity (FCFE)	661,974)	3,244,607)	1,845,884)	3,902,150)	1,510,673)	1,266,437)

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).

An analysis of the cash flow dynamics reveals significant volatility in Free Cash Flow to Equity (FCFE) relative to Net Cash provided by operating activities over the six-year period ending February 2, 2024. While operating cash flows exhibited a growth peak in 2021 followed by a period of contraction and subsequent stabilization, FCFE demonstrated more erratic fluctuations, indicating shifting capital expenditure requirements or changes in financing activities.

Operating Cash Flow Performance: Net cash provided by operating activities showed a steady upward trajectory from 2019 to 2021, peaking at 3,876,159 thousand US dollars. A subsequent decline occurred over the next two years, reaching a low of 1,984,555 thousand US dollars in 2023, before recovering to 2,391,798 thousand US dollars by February 2, 2024.
FCFE Volatility and Financing Anomalies: FCFE experienced extreme variance, notably in 2021 and 2023. In 2021, FCFE reached its highest point at 3,902,150 thousand US dollars, actually exceeding the net cash provided by operating activities for that period. A similar pattern occurred in 2023, where FCFE rose to 3,244,607 thousand US dollars despite a decline in operating cash flows to 1,984,555 thousand US dollars. These instances suggest that the equity cash flow was bolstered by significant net borrowing or the divestment of assets during those fiscal years.
Recent Cash Flow Divergence: A sharp divergence is observed in the most recent period ending February 2, 2024. Despite a recovery in operating cash flows to 2,391,798 thousand US dollars, FCFE plummeted to 661,974 thousand US dollars, the lowest level in the analyzed period. This contraction indicates a substantial increase in capital expenditures or significant repayments of debt, which severely constrained the cash available to equity holders.

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Dollar General Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	219,915,184
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	661,974)
FCFE per share	3.01
Current share price (P)	84.03
Valuation Ratio
P/FCFE	27.92
Benchmarks
P/FCFE, Competitors¹
Costco Wholesale Corp.	53.11
Target Corp.	22.31
Walmart Inc.	41.55
P/FCFE, Sector
Consumer Staples Distribution & Retail	49.56
P/FCFE, Industry
Consumer Staples	37.82

Based on: 10-K (reporting date: 2024-02-02).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

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Dollar General Corp., historical P/FCFE calculation, comparison to benchmarks

	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
No. shares of common stock outstanding¹	219,671,316	219,108,477	228,868,368	239,264,252	251,941,312	259,518,801
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	661,974)	3,244,607)	1,845,884)	3,902,150)	1,510,673)	1,266,437)
FCFE per share³	3.01	14.81	8.07	16.31	6.00	4.88
Share price^1, 4	150.78	205.81	229.63	187.78	143.00	117.47
Valuation Ratio
P/FCFE⁵	50.04	13.90	28.47	11.51	23.85	24.07
Benchmarks
P/FCFE, Competitors⁶
Costco Wholesale Corp.	66.49	37.64	77.36	37.34	23.41	—
Target Corp.	20.98	79.07	16.91	11.21	—	—
Walmart Inc.	29.40	25.97	122.02	18.26	—	—
P/FCFE, Sector
Consumer Staples Distribution & Retail	36.75	31.77	59.72	19.62	—	—
P/FCFE, Industry
Consumer Staples	32.08	24.17	25.27	24.83	—	—

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).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 661,974,000 ÷ 219,671,316 = 3.01

⁴ Closing price as at the filing date of Dollar General Corp. Annual Report.

⁵ 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 150.78 ÷ 3.01 = 50.04

⁶ Click competitor name to see calculations.

The financial data from February 2019 to February 2024 reveals a period of significant volatility in cash flow generation and a subsequent divergence in valuation multiples. While the share price followed a growth-and-contraction cycle, the Free Cash Flow to Equity (FCFE) per share exhibited erratic movements, leading to unstable P/FCFE ratios.

Share Price Trend: An upward trajectory was observed from 2019 through 2022, with the share price increasing from 117.47 to a peak of 229.63. Following this peak, a downward trend emerged, with the price declining to 150.78 by February 2024.
FCFE per Share Performance: Cash flow to equity has been characterized by high volatility. A significant spike to 16.31 occurred in 2021, followed by a decline to 8.07 in 2022 and a recovery to 14.81 in 2023. However, a sharp contraction was recorded in 2024, with FCFE per share dropping to 3.01, the lowest level within the analyzed period.
P/FCFE Ratio Interpretation: The P/FCFE ratio demonstrates extreme fluctuations, moving from a relative stability around 24.00 in 2019-2020 to a low of 11.51 in 2021. The most notable shift occurred in 2024, where the ratio expanded to 50.04. This expansion is not driven by a rise in share price, but rather by the precipitous decline in FCFE per share, indicating a substantial weakening in the company's ability to generate free cash flow relative to its market valuation.

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Dollar General Corp. (NYSE:DG)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical