No. of Recommendations: 5
Sub $73 today, based on a reaction to Target's earnings and guidance. Now at roughly 12.5 estimated 2024 earnings.
I haven't seen any news of DG rolling out debt. My assumption is they aren't, and are paying off the Sep 2024 notes with cash on hand (note was at $750 million) -- which had grown from $353 million to $1.22 billion from Aug 29 2023 to Aug 29 2024. Has anyone seen news on this?
Even still, given the cash continuing to come in, I imagine DG is getting close to resuming buybacks, if store profitability isn't degrading further (analysts are still projecting in increase in EPS next year, not a decrease, FWIW).
I don't think the dividend is in trouble, but using all or most of the cash rolling in to buyback shares would sure be a better use of funds at the moment.
Notes outstanding as of the last 10-Q (end of August):
4.250% Senior Notes due September 20, 2024 (net of discount of $58 and $230) 749,942 749,770
4.150% Senior Notes due November 1, 2025 (net of discount of $117 and $162) 499,883 499,838
3.875% Senior Notes due April 15, 2027 (net of discount of $136 and $160) 599,864 599,840
4.625% Senior Notes due November 1, 2027 (net of discount of $351 and $400) 549,649 549,600
4.125% Senior Notes due May 1, 2028 (net of discount of $210 and $237) 499,790 499,763
5.200% Senior Notes due July 5, 2028 (net of discount of $112 and $124) 499,888 499,876
3.500% Senior Notes due April 3, 2030 (net of discount of $409 and $441) 960,485 951,240
5.000% Senior Notes due November 1, 2032 (net of discount of $2,057 and $2,155) 697,943 697,845
5.450% Senior Notes due July 5, 2033 (net of discount of $1,459 and $1,521) 998,541 998,479
4.125% Senior Notes due April 3, 2050 (net of discount of $4,621 and $4,670) 495,379 495,330
5.500% Senior Notes due November 1, 2052 (net of discount of $286 and $288) 299,714 299,712
