DOLLAR GENERAL CORP (DG) Fundamental Analysis & Valuation

NYSE:DG • US2566771059

Current stock price

126.67 USD
-4.26 (-3.25%)
At close:
126.76 USD
+0.09 (+0.07%)
After Hours:

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

5

1. DG Profitability Analysis

1.1 Basic Checks

  • DG had positive earnings in the past year.
  • DG had a positive operating cash flow in the past year.
  • DG had positive earnings in each of the past 5 years.
  • Each year in the past 5 years DG had a positive operating cash flow.
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 1B 2B 3B

1.2 Ratios

  • DG has a Return On Assets (4.03%) which is comparable to the rest of the industry.
  • Looking at the Return On Equity, with a value of 15.60%, DG is in the better half of the industry, outperforming 60.53% of the companies in the same industry.
  • DG has a Return On Invested Capital (6.03%) which is in line with its industry peers.
  • DG had an Average Return On Invested Capital over the past 3 years of 8.49%. This is significantly below the industry average of 29.52%.
Industry RankSector Rank
ROA 4.03%
ROE 15.6%
ROIC 6.03%
ROA(3y)5.77%
ROA(5y)7.34%
ROE(3y)27.8%
ROE(5y)32.31%
ROIC(3y)8.49%
ROIC(5y)10.34%
DG Yearly ROA, ROE, ROICDG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • With a decent Profit Margin value of 3.03%, DG is doing good in the industry, outperforming 76.32% of the companies in the same industry.
  • DG's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 4.49%, DG is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
  • DG's Operating Margin has declined in the last couple of years.
  • DG has a Gross Margin of 30.41%. This is amongst the best in the industry. DG outperforms 81.58% 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 4.49%
PM (TTM) 3.03%
GM 30.41%
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%
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 10 20 30

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5

2. DG Health Analysis

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.
  • Compared to 1 year ago, DG has about the same amount of shares outstanding.
  • 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.
DG Yearly Shares OutstandingDG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 10B 20B 30B

2.2 Solvency

  • DG has an Altman-Z score of 2.49. 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.
  • Looking at the Altman-Z score, with a value of 2.49, DG is doing worse than 65.79% of the companies in the same industry.
  • The Debt to FCF ratio of DG is 2.20, which is a good value as it means it would take DG, 2.20 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.20, DG is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
  • DG has a Debt/Equity ratio of 0.63. This is a neutral value indicating DG is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.63, DG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • Although DG's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 2.2
Altman-Z 2.49
ROIC/WACC0.76
WACC7.91%
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 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 1.17 indicates that DG should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.17, DG perfoms like the industry average, outperforming 55.26% of the companies in the same industry.
  • A Quick Ratio of 0.24 indicates that DG may have some problems paying its short term obligations.
  • DG's Quick ratio of 0.24 is on the low side compared to the rest of the industry. DG is outperformed by 86.84% of its industry peers.
Industry RankSector Rank
Current Ratio 1.17
Quick Ratio 0.24
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 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. DG Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 8.73% over the past year.
  • DG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.56% yearly.
  • DG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.86%.
  • The Revenue has been growing slightly by 7.91% on average over the past years.
EPS 1Y (TTM)8.73%
EPS 3Y-16.48%
EPS 5Y-2.56%
EPS Q2Q%43.82%
Revenue 1Y (TTM)4.86%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%4.58%

3.2 Future

  • The Earnings Per Share is expected to grow by 11.22% 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 4.55% yearly.
EPS Next Y13.63%
EPS Next 2Y11.79%
EPS Next 3Y11.12%
EPS Next 5Y11.22%
Revenue Next Year5.02%
Revenue Next 2Y4.61%
Revenue Next 3Y4.5%
Revenue Next 5Y4.55%

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.
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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4

4. DG Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 19.19, which indicates a rather expensive current valuation of DG.
  • DG's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 26.11, DG is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 17.12, which indicates a rather expensive current valuation of DG.
  • The rest of the industry has a similar Price/Forward Earnings ratio as DG.
  • DG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.19
Fwd PE 17.12
DG Price Earnings VS Forward Price EarningsDG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DG is valued a bit cheaper than the industry average as 60.53% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, DG is valued cheaper than 84.21% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.92
EV/EBITDA 11.2
DG Per share dataDG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.41
PEG (5Y)N/A
EPS Next 2Y11.79%
EPS Next 3Y11.12%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. DG Dividend Analysis

5.1 Amount

  • DG has a Yearly Dividend Yield of 1.74%. Purely for dividend investing, there may be better candidates out there.
  • DG's Dividend Yield is rather good when compared to the industry average which is at 0.70. DG pays more dividend than 81.58% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, DG has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.74%

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
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

  • 40.66% of the earnings are spent on dividend by DG. 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.
DP40.66%
EPS Next 2Y11.79%
EPS Next 3Y11.12%
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 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 (3/18/2026, 6:04:25 PM)

After market: 126.76 +0.09 (+0.07%)

126.67

-4.26 (-3.25%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)12-04
Earnings (Next)06-01
Inst Owners99.34%
Inst Owner Change2.18%
Ins Owners0.22%
Ins Owner Change13.75%
Market Cap27.88B
Revenue(TTM)42.12B
Net Income(TTM)1.28B
Analysts75.38
Price Target148.71 (17.4%)
Short Float %3.49%
Short Ratio2.4
Dividend
Industry RankSector Rank
Dividend Yield 1.74%
Yearly Dividend2.36
Dividend Growth(5Y)13.01%
DP40.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.32%
Min EPS beat(2)15.21%
Max EPS beat(2)31.44%
EPS beat(4)4
Avg EPS beat(4)17.91%
Min EPS beat(4)8.39%
Max EPS beat(4)31.44%
EPS beat(8)6
Avg EPS beat(8)7.48%
EPS beat(12)7
Avg EPS beat(12)3.27%
EPS beat(16)8
Avg EPS beat(16)1.59%
Revenue beat(2)0
Avg Revenue beat(2)-2.68%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)-2.54%
Revenue beat(4)0
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-2.82%
Max Revenue beat(4)-1.73%
Revenue beat(8)0
Avg Revenue beat(8)-2.68%
Revenue beat(12)0
Avg Revenue beat(12)-2.95%
Revenue beat(16)0
Avg Revenue beat(16)-2.9%
PT rev (1m)3.91%
PT rev (3m)15.56%
EPS NQ rev (1m)1.94%
EPS NQ rev (3m)4.83%
EPS NY rev (1m)0.41%
EPS NY rev (3m)5.88%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.21%
Valuation
Industry RankSector Rank
PE 19.19
Fwd PE 17.12
P/S 0.66
P/FCF 11.92
P/OCF 7.7
P/B 3.41
P/tB 10.53
EV/EBITDA 11.2
EPS(TTM)6.6
EY5.21%
EPS(NY)7.4
Fwd EY5.84%
FCF(TTM)10.63
FCFY8.39%
OCF(TTM)16.44
OCFY12.98%
SpS191.34
BVpS37.19
TBVpS12.03
PEG (NY)1.41
PEG (5Y)N/A
Graham Number74.31
Profitability
Industry RankSector Rank
ROA 4.03%
ROE 15.6%
ROCE 7.7%
ROIC 6.03%
ROICexc 6.35%
ROICexgc 8.32%
OM 4.49%
PM (TTM) 3.03%
GM 30.41%
FCFM 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%
ROICexc(3y)8.7%
ROICexc(5y)10.71%
ROICexgc(3y)11.43%
ROICexgc(5y)14.55%
ROCE(3y)10.85%
ROCE(5y)13.21%
ROICexgc growth 3Y-21.19%
ROICexgc 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-Score7
Asset Turnover1.33
Health
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 2.2
Debt/EBITDA 1.75
Cap/Depr 124.35%
Cap/Sales 3.04%
Interest Coverage 250
Cash Conversion 123.91%
Profit Quality 183.17%
Current Ratio 1.17
Quick Ratio 0.24
Altman-Z 2.49
F-Score7
WACC7.91%
ROIC/WACC0.76
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)8.73%
EPS 3Y-16.48%
EPS 5Y-2.56%
EPS Q2Q%43.82%
EPS Next Y13.63%
EPS Next 2Y11.79%
EPS Next 3Y11.12%
EPS Next 5Y11.22%
Revenue 1Y (TTM)4.86%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%4.58%
Revenue Next Year5.02%
Revenue Next 2Y4.61%
Revenue Next 3Y4.5%
Revenue Next 5Y4.55%
EBIT growth 1Y-5.4%
EBIT growth 3Y-15.56%
EBIT growth 5Y-3.65%
EBIT Next Year64.73%
EBIT Next 3Y23.48%
EBIT Next 5Y16.66%
FCF growth 1Y413.6%
FCF growth 3Y-2.07%
FCF growth 5Y3.02%
OCF growth 1Y66.17%
OCF growth 3Y1.49%
OCF growth 5Y6.01%

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 4 / 10 to DOLLAR GENERAL CORP (DG). This can be considered as Fairly Valued.


How profitable is DOLLAR GENERAL CORP (DG) stock?

DOLLAR GENERAL CORP (DG) has a profitability rating of 5 / 10.


What is the earnings growth outlook for DOLLAR GENERAL CORP?

The Earnings per Share (EPS) of DOLLAR GENERAL CORP (DG) is expected to grow by 13.63% in the next year.


Can you provide the dividend sustainability for DG stock?

The dividend rating of DOLLAR GENERAL CORP (DG) is 5 / 10 and the dividend payout ratio is 40.66%.