DOLLAR GENERAL CORP (DG) Fundamental Analysis & Valuation

NYSE:DG • US2566771059

Current stock price

120.875 USD
+1.28 (+1.07%)
Last:

This DG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. DG Profitability Analysis

1.1 Basic Checks

  • In the past year DG was profitable.
  • DG had a positive operating cash flow in the past year.
  • In the past 5 years DG has always been profitable.
  • In the past 5 years DG always reported a positive cash flow from operatings.
DG Yearly Net Income VS EBIT VS OCF VS FCFDG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B

1.2 Ratios

  • DG has a Return On Assets (4.88%) which is in line with its industry peers.
  • DG has a Return On Equity of 17.77%. This is in the better half of the industry: DG outperforms 67.57% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.12%, DG is in line with its industry, outperforming 56.76% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for DG is significantly below the industry average of 34.78%.
  • The 3 year average ROIC (7.08%) for DG is below the current ROIC(7.12%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.88%
ROE 17.77%
ROIC 7.12%
ROA(3y)4.63%
ROA(5y)6.26%
ROE(3y)19.19%
ROE(5y)27.89%
ROIC(3y)7.08%
ROIC(5y)8.93%
DG Yearly ROA, ROE, ROICDG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30 40

1.3 Margins

  • DG has a better Profit Margin (3.54%) than 78.38% of its industry peers.
  • In the last couple of years the Profit Margin of DG has declined.
  • DG's Operating Margin of 5.16% is amongst the best of the industry. DG outperforms 81.08% of its industry peers.
  • In the last couple of years the Operating Margin of DG has declined.
  • DG's Gross Margin of 30.66% is amongst the best of the industry. DG outperforms 81.08% 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 RankSector Rank
OM 5.16%
PM (TTM) 3.54%
GM 30.66%
OM growth 3Y-16.31%
OM growth 5Y-13.32%
PM growth 3Y-17.85%
PM growth 5Y-14.76%
GM growth 3Y-0.61%
GM growth 5Y-0.7%
DG Yearly Profit, Operating, Gross MarginsDG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30

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5

2. DG Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DG is destroying value.
  • The number of shares outstanding for DG remains at a similar level compared to 1 year ago.
  • The number of shares outstanding for DG has been reduced compared to 5 years ago.
  • The debt/assets ratio for DG has been reduced compared to a year ago.
DG Yearly Shares OutstandingDG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M 250M
DG Yearly Total Debt VS Total AssetsDG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B

2.2 Solvency

  • An Altman-Z score of 2.55 indicates that DG is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • DG has a Altman-Z score of 2.55. This is in the lower half of the industry: DG underperforms 70.27% of its industry peers.
  • The Debt to FCF ratio of DG is 1.91, which is an excellent value as it means it would take DG, only 1.91 years of fcf income to pay off all of its debts.
  • DG's Debt to FCF ratio of 1.91 is fine compared to the rest of the industry. DG outperforms 72.97% of its industry peers.
  • DG has a Debt/Equity ratio of 0.54. This is a neutral value indicating DG is somewhat dependend on debt financing.
  • The Debt to Equity ratio of DG (0.54) is comparable to the rest of the industry.
  • Even though the debt/equity ratio score it not favorable for DG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 1.91
Altman-Z 2.55
ROIC/WACC0.88
WACC8.13%
DG Yearly LT Debt VS Equity VS FCFDG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B

2.3 Liquidity

  • DG has a Current Ratio of 1.13. This is a normal value and indicates that DG is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of DG (1.13) is comparable to the rest of the industry.
  • A Quick Ratio of 0.22 indicates that DG may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.22, DG is doing worse than 89.19% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 0.22
DG Yearly Current Assets VS Current LiabilitesDG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B

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4

3. DG Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 15.71% over the past year.
  • DG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.38% yearly.
  • DG shows a small growth in Revenue. In the last year, the Revenue has grown by 5.20%.
  • Measured over the past years, DG shows a small growth in Revenue. The Revenue has been growing by 4.83% on average per year.
EPS 1Y (TTM)15.71%
EPS 3Y-13.76%
EPS 5Y-8.38%
EPS Q2Q%14.88%
Revenue 1Y (TTM)5.2%
Revenue growth 3Y4.13%
Revenue growth 5Y4.83%
Sales Q2Q%5.89%

3.2 Future

  • The Earnings Per Share is expected to grow by 12.02% 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 4.63% yearly.
EPS Next Y9.61%
EPS Next 2Y9.88%
EPS Next 3Y10.06%
EPS Next 5Y12.02%
Revenue Next Year4.44%
Revenue Next 2Y4.31%
Revenue Next 3Y4.28%
Revenue Next 5Y4.63%

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 stable: in the next years the growth will be about the same than in the last years.
DG Yearly Revenue VS EstimatesDG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B
DG Yearly EPS VS EstimatesDG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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5

4. DG Valuation Analysis

4.1 Price/Earnings Ratio

  • DG is valuated rather expensively with a Price/Earnings ratio of 17.65.
  • 67.57% of the companies in the same industry are more expensive than DG, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of DG to the average of the S&P500 Index (27.33), we can say DG is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 16.10, which indicates a correct valuation of DG.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DG is on the same level as its industry peers.
  • DG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.16.
Industry RankSector Rank
PE 17.65
Fwd PE 16.1
DG Price Earnings VS Forward Price EarningsDG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DG indicates a somewhat cheap valuation: DG is cheaper than 62.16% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, DG is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 11.12
EV/EBITDA 9.16
DG Per share dataDG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of DG may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)N/A
EPS Next 2Y9.88%
EPS Next 3Y10.06%

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6

5. DG Dividend Analysis

5.1 Amount

  • DG has a Yearly Dividend Yield of 1.97%.
  • Compared to an average industry Dividend Yield of 0.76, DG pays a better dividend. On top of this DG pays more dividend than 81.08% of the companies listed in the same industry.
  • DG's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.97%

5.2 History

  • On average, the dividend of DG grows each year by 10.32%, which is quite nice.
  • DG has paid a dividend for at least 10 years, which is a reliable track record.
  • DG has decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.32%
Div Incr Years0
Div Non Decr Years2
DG Yearly Dividends per shareDG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • DG pays out 34.35% of its income as dividend. This is a sustainable payout ratio.
  • DG's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP34.35%
EPS Next 2Y9.88%
EPS Next 3Y10.06%
DG Yearly Income VS Free CF VS DividendDG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B 2.5B
DG Dividend Payout.DG Dividend Payout, showing the Payout Ratio.DG Dividend Payout.PayoutRetained Earnings

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DG Fundamentals: All Metrics, Ratios and Statistics

DOLLAR GENERAL CORP

NYSE:DG (4/15/2026, 12:18:54 PM)

120.875

+1.28 (+1.07%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)03-12
Earnings (Next)06-01
Inst Owners99.73%
Inst Owner Change0.02%
Ins Owners0.34%
Ins Owner Change17.19%
Market Cap26.62B
Revenue(TTM)42.72B
Net Income(TTM)1.51B
Analysts75.38
Price Target149.63 (23.79%)
Short Float %4.09%
Short Ratio2.78
Dividend
Industry RankSector Rank
Dividend Yield 1.97%
Yearly Dividend2.36
Dividend Growth(5Y)10.32%
DP34.35%
Div Incr Years0
Div Non Decr Years2
Ex-Date04-07
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.55%
Min EPS beat(2)13.67%
Max EPS beat(2)31.44%
EPS beat(4)4
Avg EPS beat(4)19.23%
Min EPS beat(4)13.67%
Max EPS beat(4)31.44%
EPS beat(8)6
Avg EPS beat(8)9.02%
EPS beat(12)8
Avg EPS beat(12)4.67%
EPS beat(16)9
Avg EPS beat(16)2.62%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)-2.09%
Revenue beat(4)0
Avg Revenue beat(4)-2.29%
Min Revenue beat(4)-2.82%
Max Revenue beat(4)-1.73%
Revenue beat(8)0
Avg Revenue beat(8)-2.67%
Revenue beat(12)0
Avg Revenue beat(12)-2.85%
Revenue beat(16)0
Avg Revenue beat(16)-2.82%
PT rev (1m)0.62%
PT rev (3m)10.44%
EPS NQ rev (1m)-2.83%
EPS NQ rev (3m)-2.23%
EPS NY rev (1m)1.49%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.22%
Valuation
Industry RankSector Rank
PE 17.65
Fwd PE 16.1
P/S 0.62
P/FCF 11.12
P/OCF 7.32
P/B 3.13
P/tB 8.95
EV/EBITDA 9.16
EPS(TTM)6.85
EY5.67%
EPS(NY)7.51
Fwd EY6.21%
FCF(TTM)10.87
FCFY8.99%
OCF(TTM)16.5
OCFY13.65%
SpS194
BVpS38.65
TBVpS13.5
PEG (NY)1.84
PEG (5Y)N/A
Graham Number77.1815 (-36.15%)
Profitability
Industry RankSector Rank
ROA 4.88%
ROE 17.77%
ROCE 9.18%
ROIC 7.12%
ROICexc 7.48%
ROICexgc 9.87%
OM 5.16%
PM (TTM) 3.54%
GM 30.66%
FCFM 5.6%
ROA(3y)4.63%
ROA(5y)6.26%
ROE(3y)19.19%
ROE(5y)27.89%
ROIC(3y)7.08%
ROIC(5y)8.93%
ROICexc(3y)7.34%
ROICexc(5y)9.17%
ROICexgc(3y)9.63%
ROICexgc(5y)12.23%
ROCE(3y)9.12%
ROCE(5y)11.51%
ROICexgc growth 3Y-12.94%
ROICexgc growth 5Y-13.9%
ROICexc growth 3Y-12.92%
ROICexc growth 5Y-12.65%
OM growth 3Y-16.31%
OM growth 5Y-13.32%
PM growth 3Y-17.85%
PM growth 5Y-14.76%
GM growth 3Y-0.61%
GM growth 5Y-0.7%
F-Score7
Asset Turnover1.38
Health
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 1.91
Debt/EBITDA 1.4
Cap/Depr 118.62%
Cap/Sales 2.91%
Interest Coverage 7.59
Cash Conversion 111.83%
Profit Quality 158.26%
Current Ratio 1.13
Quick Ratio 0.22
Altman-Z 2.55
F-Score7
WACC8.13%
ROIC/WACC0.88
Cap/Depr(3y)151.25%
Cap/Depr(5y)167.19%
Cap/Sales(3y)3.51%
Cap/Sales(5y)3.56%
Profit Quality(3y)116.58%
Profit Quality(5y)88.42%
High Growth Momentum
Growth
EPS 1Y (TTM)15.71%
EPS 3Y-13.76%
EPS 5Y-8.38%
EPS Q2Q%14.88%
EPS Next Y9.61%
EPS Next 2Y9.88%
EPS Next 3Y10.06%
EPS Next 5Y12.02%
Revenue 1Y (TTM)5.2%
Revenue growth 3Y4.13%
Revenue growth 5Y4.83%
Sales Q2Q%5.89%
Revenue Next Year4.44%
Revenue Next 2Y4.31%
Revenue Next 3Y4.28%
Revenue Next 5Y4.63%
EBIT growth 1Y28.56%
EBIT growth 3Y-12.86%
EBIT growth 5Y-9.13%
EBIT Next Year63.31%
EBIT Next 3Y23.19%
EBIT Next 5Y15.85%
FCF growth 1Y41.94%
FCF growth 3Y78.06%
FCF growth 5Y-3.42%
OCF growth 1Y21.31%
OCF growth 3Y22.35%
OCF growth 5Y-1.28%

DOLLAR GENERAL CORP / DG Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for DOLLAR GENERAL CORP?

ChartMill assigns a fundamental rating of 5 / 10 to DG.


Can you provide the valuation status for DOLLAR GENERAL CORP?

ChartMill assigns a valuation rating of 5 / 10 to DOLLAR GENERAL CORP (DG). This can be considered as Fairly Valued.


Can you provide the profitability details for DOLLAR GENERAL CORP?

DOLLAR GENERAL CORP (DG) has a profitability rating of 6 / 10.


What are the PE and PB ratios of DOLLAR GENERAL CORP (DG) stock?

The Price/Earnings (PE) ratio for DOLLAR GENERAL CORP (DG) is 17.65 and the Price/Book (PB) ratio is 3.13.


Can you provide the financial health for DG stock?

The financial health rating of DOLLAR GENERAL CORP (DG) is 5 / 10.