DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
NYSE:DG - New York Stock Exchange, Inc. - US2566771059 - Common Stock - Currency: USD
Overall DG gets a fundamental rating of 4 out of 10. We evaluated DG against 40 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of DG get a neutral evaluation. Nothing too spectacular is happening here. DG has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DG was profitable.
In the past year DG had a positive cash flow from operations.
In the past 5 years DG has always been profitable.
In the past 5 years DG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.72%, DG is in line with its industry, outperforming 57.50% of the companies in the same industry.
DG has a Return On Equity of 14.98%. This is in the better half of the industry: DG outperforms 70.00% of its industry peers.
The Return On Invested Capital of DG (5.55%) is comparable to the rest of the industry.
DG had an Average Return On Invested Capital over the past 3 years of 8.49%. This is in line with the industry average of 8.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 14.98% | ||
| ROIC | 5.55% |
ROA(3y)5.77%
ROA(5y)7.34%
ROE(3y)27.8%
ROE(5y)32.31%
ROIC(3y)8.49%
ROIC(5y)10.34%
1.3 Margins
With a decent Profit Margin value of 2.81%, DG is doing good in the industry, outperforming 77.50% of the companies in the same industry.
DG's Profit Margin has declined in the last couple of years.
DG's Operating Margin of 4.24% is fine compared to the rest of the industry. DG outperforms 77.50% of its industry peers.
In the last couple of years the Operating Margin of DG has declined.
DG's Gross Margin of 29.80% is fine compared to the rest of the industry. DG outperforms 75.00% of its industry peers.
DG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.24% | ||
| PM (TTM) | 2.81% | ||
| GM | 29.8% |
OM growth 3Y-20.24%
OM growth 5Y-10.71%
PM growth 3Y-26.62%
PM growth 5Y-14.8%
GM growth 3Y-2.16%
GM growth 5Y-0.66%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DG is creating some value.
DG has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for DG has been reduced compared to 5 years ago.
DG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.39 indicates that DG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.39, DG is not doing good in the industry: 72.50% of the companies in the same industry are doing better.
The Debt to FCF ratio of DG is 2.99, which is a good value as it means it would take DG, 2.99 years of fcf income to pay off all of its debts.
DG has a Debt to FCF ratio of 2.99. This is in the better half of the industry: DG outperforms 72.50% of its industry peers.
DG has a Debt/Equity ratio of 0.74. This is a neutral value indicating DG is somewhat dependend on debt financing.
The Debt to Equity ratio of DG (0.74) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.7
WACC7.9%
2.3 Liquidity
DG has a Current Ratio of 1.23. This is a normal value and indicates that DG is financially healthy and should not expect problems in meeting its short term obligations.
DG has a better Current ratio (1.23) than 62.50% of its industry peers.
A Quick Ratio of 0.20 indicates that DG may have some problems paying its short term obligations.
DG has a Quick ratio of 0.20. This is amonst the worse of the industry: DG underperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
The earnings per share for DG have decreased strongly by -11.94% in the last year.
The Earnings Per Share has been decreasing by -2.56% on average over the past years.
Looking at the last year, DG shows a small growth in Revenue. The Revenue has grown by 4.77% in the last year.
The Revenue has been growing slightly by 7.91% on average over the past years.
EPS 1Y (TTM)-11.94%
EPS 3Y-16.48%
EPS 5Y-2.56%
EPS Q2Q%7.88%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%5.26%
3.2 Future
The Earnings Per Share is expected to grow by 9.21% on average over the next years. This is quite good.
DG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.29% yearly.
EPS Next Y-0.05%
EPS Next 2Y5.65%
EPS Next 3Y7.67%
EPS Next 5Y9.21%
Revenue Next Year4.55%
Revenue Next 2Y4.37%
Revenue Next 3Y4.35%
Revenue Next 5Y4.29%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DG is valuated rather expensively with a Price/Earnings ratio of 18.84.
Based on the Price/Earnings ratio, DG is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.98. DG is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.25, DG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, DG is valued a bit cheaper than 67.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DG to the average of the S&P500 Index (21.49), we can say DG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.84 | ||
| Fwd PE | 17.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DG is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DG indicates a rather cheap valuation: DG is cheaper than 82.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.05 | ||
| EV/EBITDA | 10.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.65%
EPS Next 3Y7.67%
5. Dividend
5.1 Amount
DG has a Yearly Dividend Yield of 2.10%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.08, DG pays a better dividend. On top of this DG pays more dividend than 82.50% of the companies listed in the same industry.
DG's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
On average, the dividend of DG grows each year by 13.01%, which is quite nice.
DG has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of DG decreased recently.
Dividend Growth(5Y)13.01%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DG pays out 44.99% of its income as dividend. This is a bit on the high side, but may be sustainable.
DG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.99%
EPS Next 2Y5.65%
EPS Next 3Y7.67%
NYSE:DG (6/30/2025, 12:16:06 PM)
113.96
-0.49 (-0.43%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.9%
Inst Owner Change1.4%
Ins Owners0.27%
Ins Owner Change22.48%
Market Cap25.07B
Analysts72.31
Price Target117.71 (3.29%)
Short Float %3.58%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend2.36
Dividend Growth(5Y)13.01%
DP44.99%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.5%
Min EPS beat(2)8.39%
Max EPS beat(2)16.62%
EPS beat(4)2
Avg EPS beat(4)2.39%
Min EPS beat(4)-7.78%
Max EPS beat(4)16.62%
EPS beat(8)5
Avg EPS beat(8)0.03%
EPS beat(12)5
Avg EPS beat(12)-1.63%
EPS beat(16)8
Avg EPS beat(16)-1.25%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-2.53%
Max Revenue beat(2)-1.73%
Revenue beat(4)0
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-4.39%
Max Revenue beat(4)-1.73%
Revenue beat(8)0
Avg Revenue beat(8)-2.83%
Revenue beat(12)0
Avg Revenue beat(12)-2.94%
Revenue beat(16)0
Avg Revenue beat(16)-2.89%
PT rev (1m)29.06%
PT rev (3m)34.79%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-4.91%
EPS NY rev (1m)3.29%
EPS NY rev (3m)-2.73%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.84 | ||
| Fwd PE | 17.25 | ||
| P/S | 0.61 | ||
| P/FCF | 13.05 | ||
| P/OCF | 7.88 | ||
| P/B | 3.25 | ||
| P/tB | 11.58 | ||
| EV/EBITDA | 10.99 |
EPS(TTM)6.05
EY5.31%
EPS(NY)6.61
Fwd EY5.8%
FCF(TTM)8.73
FCFY7.66%
OCF(TTM)14.46
OCFY12.68%
SpS187.02
BVpS35.02
TBVpS9.84
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 14.98% | ||
| ROCE | 7.09% | ||
| ROIC | 5.55% | ||
| ROICexc | 5.75% | ||
| ROICexgc | 7.5% | ||
| OM | 4.24% | ||
| PM (TTM) | 2.81% | ||
| GM | 29.8% | ||
| FCFM | 4.67% |
ROA(3y)5.77%
ROA(5y)7.34%
ROE(3y)27.8%
ROE(5y)32.31%
ROIC(3y)8.49%
ROIC(5y)10.34%
ROICexc(3y)8.7%
ROICexc(5y)10.71%
ROICexgc(3y)11.43%
ROICexgc(5y)14.55%
ROCE(3y)10.85%
ROCE(5y)13.21%
ROICexcg growth 3Y-21.19%
ROICexcg growth 5Y-10.21%
ROICexc growth 3Y-19.78%
ROICexc growth 5Y-8.48%
OM growth 3Y-20.24%
OM growth 5Y-10.71%
PM growth 3Y-26.62%
PM growth 5Y-14.8%
GM growth 3Y-2.16%
GM growth 5Y-0.66%
F-Score6
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.99 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 126.87% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.19% | ||
| Profit Quality | 166.45% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.2 | ||
| Altman-Z | 2.39 |
F-Score6
WACC7.9%
ROIC/WACC0.7
Cap/Depr(3y)183.47%
Cap/Depr(5y)179.27%
Cap/Sales(3y)3.91%
Cap/Sales(5y)3.58%
Profit Quality(3y)69.68%
Profit Quality(5y)78.23%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.94%
EPS 3Y-16.48%
EPS 5Y-2.56%
EPS Q2Q%7.88%
EPS Next Y-0.05%
EPS Next 2Y5.65%
EPS Next 3Y7.67%
EPS Next 5Y9.21%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%5.26%
Revenue Next Year4.55%
Revenue Next 2Y4.37%
Revenue Next 3Y4.35%
Revenue Next 5Y4.29%
EBIT growth 1Y-22.54%
EBIT growth 3Y-15.56%
EBIT growth 5Y-3.65%
EBIT Next Year51.57%
EBIT Next 3Y20.7%
EBIT Next 5Y15.93%
FCF growth 1Y2186.1%
FCF growth 3Y-2.07%
FCF growth 5Y3.02%
OCF growth 1Y84.19%
OCF growth 3Y1.49%
OCF growth 5Y6.01%