Subject: Re: So 9 years later
(thread should be marked OT or on a different board)

And I'll just take a wild stab and guess we have twice as many stores.

Yup, since the first time this price was seen around spring 2015, DG's store count is up from around 12900 to 20345.
Sales up from about $66/share to over $180/share, 11.7%/year compounded.

Until the profitability dip starting last year, in normal years net profit margin has usually been in the range 5.2% to 7.9%. There is some doubt that the old normal profitability range will be visited again, but if it were, that sales rate would put today's price at a cyclically adjusted trailing P/E of 5.8 to 8.8. A big "if", perhaps. The trailing P/E is 12.9 right now.

For comparison, Walmart's sales per share is up 5.0%/year in the last 10 years, profits up 3.0%/year, and currently trading at a trailing P/E over 40.
I made a whole lot on these guys when they were price attractively, but I don't see a margin of safety at these levels.

Jim
(long DG and DLTR)