DOLLAR GENERAL CORP (DG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DG - US2566771059 - Common Stock
147.23 USD
+0.6 (+0.41%)
Taking everything into account, DG scores 5 out of 10 in our fundamental rating. DG was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. DG has only an average score on both its financial health and profitability. DG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year DG was profitable.
- In the past year DG had a positive cash flow from operations.
- 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.
1.2 Ratios
- DG has a Return On Assets of 4.03%. This is comparable to the rest of the industry: DG outperforms 55.26% 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 63.16% 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 28.30%.
| Industry Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 3.03%, DG is in the better half of 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.
- Looking at the Gross Margin, with a value of 30.41%, DG belongs to the top of the industry, outperforming 81.58% 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 | 4.49% | ||
| 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%
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.
- 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.
2.2 Solvency
- DG has an Altman-Z score of 2.57. 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.
- With a Altman-Z score value of 2.57, DG is not doing good in the industry: 65.79% of the companies in the same industry are doing better.
- 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.
- With a decent Debt to FCF ratio value of 2.20, DG is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- A Debt/Equity ratio of 0.63 indicates that DG is somewhat dependend on debt financing.
- The Debt to Equity ratio of DG (0.63) 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.2 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.75
WACC8.05%
2.3 Liquidity
- A Current Ratio of 1.17 indicates that DG should not have too much problems paying its short term obligations.
- DG has a Current ratio of 1.17. This is comparable to the rest of the industry: DG outperforms 57.89% of its industry peers.
- DG has a Quick Ratio of 1.17. 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 (0.24) than 81.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
- DG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.73%, which is quite good.
- Measured over the past years, DG shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.56% on average per year.
- The Revenue has been growing slightly by 4.86% in the past year.
- DG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.91% yearly.
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 11.15% 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 4.53% yearly.
EPS Next Y13.07%
EPS Next 2Y11.52%
EPS Next 3Y11.08%
EPS Next 5Y11.15%
Revenue Next Year4.93%
Revenue Next 2Y4.55%
Revenue Next 3Y4.43%
Revenue Next 5Y4.53%
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
- DG is valuated rather expensively with a Price/Earnings ratio of 22.31.
- The rest of the industry has a similar Price/Earnings ratio as DG.
- Compared to an average S&P500 Price/Earnings ratio of 26.94, DG is valued at the same level.
- DG is valuated rather expensively with a Price/Forward Earnings ratio of 20.00.
- DG's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. DG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.31 | ||
| Fwd PE | 20 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DG is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, DG is valued a bit cheaper than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.85 | ||
| EV/EBITDA | 12.38 |
4.3 Compensation for Growth
- DG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.71
PEG (5Y)N/A
EPS Next 2Y11.52%
EPS Next 3Y11.08%
5. Dividend
5.1 Amount
- DG has a Yearly Dividend Yield of 1.56%. 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 0.72. DG pays more dividend than 81.58% of the companies in the same industry.
- DG's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
- The dividend of DG is nicely growing with an annual growth rate of 13.01%!
- DG has paid a dividend for at least 10 years, which is 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
- 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 2Y11.52%
EPS Next 3Y11.08%
NYSE:DG (1/21/2026, 10:20:59 AM)
147.23
+0.6 (+0.41%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)12-04 2025-12-04/bmo
Earnings (Next)06-01 2026-06-01
Inst Owners97.52%
Inst Owner Change0.24%
Ins Owners0.24%
Ins Owner Change0.32%
Market Cap32.41B
Revenue(TTM)42.12B
Net Income(TTM)1.28B
Analysts76.84
Price Target138.77 (-5.75%)
Short Float %4.58%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend2.36
Dividend Growth(5Y)13.01%
DP40.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-06 2026-01-06 (0.59)
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)7.84%
PT rev (3m)11.61%
EPS NQ rev (1m)1.49%
EPS NQ rev (3m)0.49%
EPS NY rev (1m)0.3%
EPS NY rev (3m)5.59%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.31 | ||
| Fwd PE | 20 | ||
| P/S | 0.77 | ||
| P/FCF | 13.85 | ||
| P/OCF | 8.95 | ||
| P/B | 3.96 | ||
| P/tB | 12.24 | ||
| EV/EBITDA | 12.38 |
EPS(TTM)6.6
EY4.48%
EPS(NY)7.36
Fwd EY5%
FCF(TTM)10.63
FCFY7.22%
OCF(TTM)16.45
OCFY11.17%
SpS191.35
BVpS37.19
TBVpS12.03
PEG (NY)1.71
PEG (5Y)N/A
Graham Number74.32
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.57 |
F-Score7
WACC8.05%
ROIC/WACC0.75
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 Y13.07%
EPS Next 2Y11.52%
EPS Next 3Y11.08%
EPS Next 5Y11.15%
Revenue 1Y (TTM)4.86%
Revenue growth 3Y5.87%
Revenue growth 5Y7.91%
Sales Q2Q%4.58%
Revenue Next Year4.93%
Revenue Next 2Y4.55%
Revenue Next 3Y4.43%
Revenue Next 5Y4.53%
EBIT growth 1Y-5.4%
EBIT growth 3Y-15.56%
EBIT growth 5Y-3.65%
EBIT Next Year63.97%
EBIT Next 3Y23.23%
EBIT Next 5Y16.62%
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 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 3 / 10 to DOLLAR GENERAL CORP (DG). This can be considered as Overvalued.
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 13.07% 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%.