DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
NYSE:DG - New York Stock Exchange, Inc. - US2566771059 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to DG. 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
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.
1.2 Ratios
With a Return On Assets value of 3.72%, DG perfoms like the industry average, outperforming 57.50% of the companies in the same industry.
DG has a better Return On Equity (14.98%) than 70.00% of its industry peers.
DG has a Return On Invested Capital of 5.55%. This is comparable to the rest of the industry: DG outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DG 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
DG has a better Profit Margin (2.81%) than 77.50% of its industry peers.
In the last couple of years the Profit Margin of DG has declined.
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.
Looking at the Gross Margin, with a value of 29.80%, DG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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
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.
DG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DG has been reduced compared to a year ago.
2.2 Solvency
DG has an Altman-Z score of 2.39. 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.
DG has a Altman-Z score of 2.39. This is in the lower half of the industry: DG underperforms 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.
With a decent Debt to FCF ratio value of 2.99, DG is doing good in the industry, outperforming 72.50% of the companies in the same industry.
A Debt/Equity ratio of 0.74 indicates that 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 | 2.39 |
ROIC/WACC0.69
WACC8.01%
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.
With a Quick ratio value of 0.20, DG is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
| 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.
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 4.77% in the past year.
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
DG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.21% yearly.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.72 indicates a rather expensive valuation of DG.
65.00% of the companies in the same industry are more expensive than DG, based on the Price/Earnings ratio.
DG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.51.
The Price/Forward Earnings ratio is 17.13, which indicates a rather expensive current valuation of DG.
DG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DG is cheaper than 72.50% of the companies in the same industry.
DG is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 17.13 |
4.2 Price Multiples
DG's Enterprise Value to EBITDA is on the same level as the industry average.
DG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DG is cheaper than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.98 | ||
| EV/EBITDA | 10.99 |
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
DG has a Yearly Dividend Yield of 2.10%. 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 2.03. DG pays more dividend than 85.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, DG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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 (7/15/2025, 2:49:52 PM)
113.245
-1.14 (-1%)
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 Change0.02%
Ins Owners0.27%
Ins Owner Change22.48%
Market Cap24.92B
Analysts74.74
Price Target117.71 (3.94%)
Short Float %3.52%
Short Ratio2.15
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)21.2%
PT rev (3m)34.28%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-0.63%
EPS NY rev (1m)3.25%
EPS NY rev (3m)3.17%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 17.13 | ||
| P/S | 0.61 | ||
| P/FCF | 12.98 | ||
| P/OCF | 7.84 | ||
| P/B | 3.24 | ||
| P/tB | 11.51 | ||
| EV/EBITDA | 10.99 |
EPS(TTM)6.05
EY5.34%
EPS(NY)6.61
Fwd EY5.84%
FCF(TTM)8.73
FCFY7.71%
OCF(TTM)14.45
OCFY12.76%
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 | 2.39 |
F-Score6
WACC8.01%
ROIC/WACC0.69
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 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%