Added to YB: 2025-09-02
Pitch date: 2025-08-29
DG [bullish]
Dollar General Corporation
+15.08%
current return
Author Info
RM Capital Partnership studies great businesses and long-term investors like Buffett and Munger. This Substack shares my investment theses, lessons learned, and journey to becoming a better thinker and capital allocator. Sign up for the newsletter.
Company Info
Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States.
Market Cap
$26.0B
Pitch Price
$108.11
Price Target
N/A
Dividend
2.00%
EV/EBITDA
7.10
P/E
17.20
EV/Sales
0.95
Sector
Consumer Staples Distribution and Retail
Category
value
Dollar General — Can Small Boxes Keep Delivering Big Returns?
DG: Discount retailer w/ 20,500 small stores serving low-income households. Trading at 12x FCF despite margin recovery potential from 5% to 7% (adding $1B FCF by 2030). Sticky 80% consumables model, 2-year store paybacks, room to grow to 30k locations. 12-13% annual returns base case, 20%+ bull case.
Read full article (12 min)