Should you buy Dollar General stock? (December 2023)

See more of my work at https://www.3minutebreakdowns.com Dollar General stock analysis. Ticker $DG Dollar General stock has crashed 50% this year. That’s not only the company’s worst ever performance since its 2009 IPO, it will be the stock’s first ever year of negative returns. At the current price, the company has a market cap of 27 billion dollars. It’s got 7 billion of long term debt taking the enterprise value to 34 billion. Revenue over the last 12 months totals 39 billion with almost 2 billion of net income and 3.6 billion of ebitda. So the stock looks cheap at only 14 times earnings. Historically, Dollar General has been an excellent investment. Shares have returned over 600% since the IPO, that’s even including this year’s dreadful performance. But that poor performance appears justified. Same-store sales in the latest quarter declined 1.3% and are now flat over the last 9 months. Net income is down almost 20% from the same time last year and management expects more declines to come. A key question then, is why growth has slowed so dramatically for a business that went over a decade without an issue? The answer is a combination of execution missteps and inflation. #investing #stocks #stockstobuy #3mb