DOLLAR GENERAL CORP (DG) Fundamental Analysis & Valuation

NYSE:DG • US2566771059

Current stock price

123.48 USD
-3.19 (-2.52%)
Last:

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

  • In the past year DG was profitable.
  • DG had a positive operating cash flow in the past year.
  • DG had positive earnings in each of the past 5 years.
  • DG had a positive operating cash flow in each of the past 5 years.
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 of 4.03%. This is comparable to the rest of the industry: DG outperforms 52.63% of its industry peers.
  • 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 comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for DG 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

  • DG has a Profit Margin of 3.03%. This is in the better half of the industry: DG outperforms 76.32% of its industry peers.
  • DG's Profit Margin has declined in the last couple of years.
  • DG has a better Operating Margin (4.49%) than 78.95% of its industry peers.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. DG Health Analysis

2.1 Basic Checks

  • DG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
  • Compared to 1 year ago, DG has an improved debt to assets ratio.
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 2.46. 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 2.46, DG is doing worse than 65.79% of the companies in the same industry.
  • DG has a debt to FCF ratio of 2.20. This is a good value and a sign of high solvency as DG would need 2.20 years to pay back of all of its debts.
  • DG has a better Debt to FCF ratio (2.20) than 73.68% of its industry peers.
  • 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 2.46
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.
  • Looking at the Current ratio, with a value of 1.17, DG is in line with its industry, 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 has a worse Quick ratio (0.24) than 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

More info and screens

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.
  • The Revenue has been growing slightly by 4.86% in the past year.
  • 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.
  • Based on estimates for the next years, DG will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
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

More info and screens

Find the best growth stocksShow best growing peers

5

4. DG Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 18.71 indicates a rather expensive valuation of DG.
  • The rest of the industry has a similar Price/Earnings ratio as DG.
  • DG is valuated rather cheaply when we compare the Price/Earnings ratio to 25.79, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 16.69 indicates a correct valuation of DG.
  • DG's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 23.80. DG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 18.71
Fwd PE 16.69
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DG indicates a somewhat cheap valuation: DG is cheaper than 63.16% of the companies listed in the same industry.
  • 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 11.62
EV/EBITDA 10.88
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)1.37
PEG (5Y)N/A
EPS Next 2Y11.79%
EPS Next 3Y11.12%

More info and screens

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.
  • Compared to an average industry Dividend Yield of 0.70, DG pays a better dividend. On top of this DG pays more dividend than 81.58% of the companies listed in the same industry.
  • DG's Dividend Yield is comparable with the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 1.74%

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
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 40.66% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of DG is growing, but the earnings are growing slower. 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

More info and screens

Find the best dividend stocksShow peers with best dividend

DG Fundamentals: All Metrics, Ratios and Statistics

DOLLAR GENERAL CORP

NYSE:DG (3/19/2026, 1:52:05 PM)

123.48

-3.19 (-2.52%)

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 Cap27.18B
Revenue(TTM)42.12B
Net Income(TTM)1.28B
Analysts75.38
Price Target148.71 (20.43%)
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 18.71
Fwd PE 16.69
P/S 0.65
P/FCF 11.62
P/OCF 7.51
P/B 3.32
P/tB 10.27
EV/EBITDA 10.88
EPS(TTM)6.6
EY5.34%
EPS(NY)7.4
Fwd EY5.99%
FCF(TTM)10.63
FCFY8.61%
OCF(TTM)16.44
OCFY13.32%
SpS191.34
BVpS37.19
TBVpS12.03
PEG (NY)1.37
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 2.46
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%.