DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
NYSE:DG - New York Stock Exchange, Inc. - US2566771059 - Common Stock - Currency: USD
Taking everything into account, DG scores 4 out of 10 in our fundamental rating. DG was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. DG has an average financial health and profitability rating. DG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
DG had positive earnings in the past year.
In the past year DG had a positive cash flow from operations.
DG had positive earnings in each of the past 5 years.
In the past 5 years DG always reported a positive cash flow from operatings.
1.2 Ratios
DG's Return On Assets of 3.72% is in line compared to the rest of the industry. DG outperforms 57.50% of its industry peers.
DG's Return On Equity of 14.98% is fine compared to the rest of the industry. DG outperforms 70.00% of its industry peers.
DG's Return On Invested Capital of 5.55% is in line compared to the rest of the industry. DG outperforms 52.50% of its industry peers.
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 8.20%.
| 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
DG has a Profit Margin of 2.81%. This is in the better half of the industry: DG outperforms 77.50% of its industry peers.
DG's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 4.24%, DG is doing good in the industry, outperforming 77.50% of the companies in the same industry.
In the last couple of years the Operating Margin of DG has declined.
DG has a Gross Margin of 29.80%. This is in the better half of the industry: DG outperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of DG has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DG is still creating some value.
DG has about the same amout of shares outstanding than it did 1 year ago.
DG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DG has an improved debt to assets ratio.
2.2 Solvency
DG has an Altman-Z score of 2.40. This is not the best score and indicates that DG is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of DG (2.40) is worse than 70.00% of its industry peers.
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 better Debt to FCF ratio (2.99) than 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.
DG has a Debt to Equity ratio (0.74) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 2.4 |
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 67.50% of its industry peers.
DG has a Quick Ratio of 1.23. This is a bad value and indicates that DG is not financially healthy enough and could expect problems in meeting its short term obligations.
DG has a worse Quick ratio (0.20) than 87.50% 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.
DG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.77%.
Measured over the past years, DG shows a small growth in Revenue. The Revenue has been growing by 7.91% on average per year.
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
Based on estimates for the next years, DG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.21% on average per year.
The Revenue is expected to grow by 4.29% on average over the next years.
EPS Next Y-0.1%
EPS Next 2Y5.68%
EPS Next 3Y7.75%
EPS Next 5Y9.21%
Revenue Next Year4.55%
Revenue Next 2Y4.38%
Revenue Next 3Y4.38%
Revenue Next 5Y4.29%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 19.22, DG is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of DG indicates a somewhat cheap valuation: DG is cheaper than 62.50% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DG to the average of the S&P500 Index (26.51), we can say DG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.59, DG is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DG indicates a somewhat cheap valuation: DG is cheaper than 72.50% of the companies listed in the same industry.
DG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 17.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DG.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DG indicates a rather cheap valuation: DG is cheaper than 85.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.33 | ||
| EV/EBITDA | 11.14 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.68%
EPS Next 3Y7.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.04%, DG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.04, DG pays a better dividend. On top of this DG pays more dividend than 82.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, DG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
The dividend of DG is nicely growing with an annual growth rate of 13.01%!
DG has been paying a dividend for at least 10 years, so it has a reliable track record.
DG has decreased its dividend 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 2Y5.68%
EPS Next 3Y7.75%
NYSE:DG (8/11/2025, 12:58:02 PM)
116.31
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.33%
Inst Owner Change1.72%
Ins Owners0.25%
Ins Owner Change22.25%
Market Cap25.60B
Analysts74.74
Price Target119.6 (2.83%)
Short Float %3.67%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
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)1.61%
PT rev (3m)32.5%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-0.41%
EPS NY rev (1m)0%
EPS NY rev (3m)3.72%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 17.59 | ||
| P/S | 0.62 | ||
| P/FCF | 13.33 | ||
| P/OCF | 8.05 | ||
| P/B | 3.32 | ||
| P/tB | 11.82 | ||
| EV/EBITDA | 11.14 |
EPS(TTM)6.05
EY5.2%
EPS(NY)6.61
Fwd EY5.68%
FCF(TTM)8.73
FCFY7.5%
OCF(TTM)14.45
OCFY12.42%
SpS186.91
BVpS35.01
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 | 2.4 |
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-0.1%
EPS Next 2Y5.68%
EPS Next 3Y7.75%
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 2Y4.38%
Revenue Next 3Y4.38%
Revenue Next 5Y4.29%
EBIT growth 1Y-22.54%
EBIT growth 3Y-15.56%
EBIT growth 5Y-3.65%
EBIT Next Year53.39%
EBIT Next 3Y21.25%
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%