Dollar General (DG) AI Stock Analysis

• Market Cap: $25.21B
• Dividend Yield: 2.06%
• Average Volume (3M): 2.63M
• Price to Earnings (P/E): 21.8
• Beta (1Y): -0.17
• Revenue Growth: 4.77%
• EPS Growth: -23.73%
• Country: US
• Employees: 194,200
• Sector: Consumer Defensive
• Sector Strength: 69
• Industry: Discount Stores
• EPS (TTM): 1.78
• Shares Outstanding: 220,070,620
• 10 Day Avg. Volume: 2,940,411
• 30 Day Avg. Volume: 2,625,703
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 2.94
• Enterprise Value/Ebitda: 13.17
• 1Y Price Target: $119.27
• Price Target Upside: 3.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23

• Rating: 77 Outperform
• Price Target: $126.00 ▲(9.38% Upside)

Dollar General's overall stock score is bolstered by strong technical momentum and a robust earnings call performance, highlighting market share growth and strategic expansions. Financial performance is stable with solid profitability, though high leverage and modest revenue growth are concerns. Valuation suggests the stock may be slightly overvalued, but the dividend yield provides some offset.

Positive Factors

Market Performance

DG closed up 15.9% after its 1Q top-line and EPS beat, along with raising FY25 guidance.

Market Share Growth

The company grew market share in both dollars and units in consumables, along with growing market share in non-consumables.

Strategic Initiatives

Dollar General's Back to Basics initiatives, including SKU rationalization and inventory reduction, are working effectively, driving efficiencies.

Negative Factors

Competitive Environment

There are concerns about Dollar General's ability to compete with Walmart in delivering value and convenience long-term.

Financial Headwinds

The expected increase in incentive compensation is seen as a financial headwind for the company.

Market Comparison

DG has decreased 37% compared to +110% for the S&P 500.

Dollar General Business Overview & Revenue Model

Company Description

Dollar General (DG) is a leading discount retailer in the United States, specializing in providing a wide range of everyday essentials at low prices. Founded in 1939, the company operates thousands of stores across rural and suburban areas, offering products that include groceries, cleaning supplies, health and beauty items, and household goods. Dollar General is known for its convenient locations and a no-frills shopping experience, catering primarily to budget-conscious consumers.

How the Company Makes Money

Dollar General generates revenue primarily through the sale of a diverse array of consumer products. The company's revenue model is based on offering a broad selection of goods at competitive prices, which attracts price-sensitive customers. Key revenue streams include grocery items, consumables, seasonal merchandise, and apparel. Dollar General's strategy often revolves around maintaining low operational costs, which allows them to keep prices down while still achieving healthy margins. Additionally, the company has engaged in partnerships with suppliers and manufacturers to optimize its supply chain and enhance product offerings. The success of its private label brands also contributes significantly to its earnings, as these products typically have higher profit margins compared to national brands.

Dollar General Financial Statement Overview

Summary

Dollar General shows stable financial performance with solid profitability and cash flow metrics, albeit with modest revenue growth. High leverage is a potential risk, but efficient equity utilization and cash generation provide a counterbalance. The company is well-positioned in the discount retail sector, but strategic measures to enhance revenue growth and reduce leverage could strengthen its financial standing further.

Income Statement

Dollar General exhibits decent profitability with a gross profit margin of 29.79% and a net profit margin of 2.80% for TTM. The EBIT margin stands at 4.24% and EBITDA margin at 5.44%, indicating stable operational efficiency. However, the revenue growth rate of 1.28% from the previous annual period is modest, suggesting limited top-line expansion.

Balance Sheet

The company's debt-to-equity ratio is 2.21, indicating a relatively high leverage position, which could pose financial risks. Return on Equity (ROE) is strong at 14.98%, showcasing effective use of equity to generate profit. Equity ratio is 24.86%, reflecting a moderate level of equity financing in the asset base.

Cash Flow

Operating cash flow to net income ratio is 2.76, reflecting strong cash generation relative to net income. Free cash flow growth rate of 13.92% indicates improved liquidity and cash generation capabilities. Free cash flow to net income ratio of 1.66 further underscores robust cash flow performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.13B	40.61B	38.69B	37.84B	34.22B	33.75B
Gross Profit	12.26B	12.02B	11.72B	11.82B	10.81B	10.72B
EBITDA	2.74B	2.69B	3.30B	4.05B	3.86B	4.13B
Net Income	1.15B	1.13B	1.66B	2.42B	2.40B	2.66B
Balance Sheet
Total Assets	30.99B	31.13B	30.80B	29.08B	26.33B	25.86B
Cash, Cash Equivalents and Short-Term Investments	850.02M	932.58M	537.28M	381.58M	344.83M	1.38B
Total Debt	17.02B	17.46B	18.09B	17.66B	14.25B	13.59B
Total Liabilities	23.28B	23.72B	24.05B	23.54B	20.07B	19.20B
Stockholders Equity	7.70B	7.41B	6.75B	5.54B	6.26B	6.66B
Cash Flow
Free Cash Flow	1.92B	1.69B	691.58M	423.97M	1.80B	2.85B
Operating Cash Flow	3.18B	3.00B	2.39B	1.98B	2.87B	3.88B
Investing Cash Flow	-1.26B	-1.31B	-1.69B	-1.56B	-1.07B	-1.02B
Financing Cash Flow	-1.79B	-1.29B	-542.07M	-392.46M	-2.83B	-1.71B

Dollar General Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 115.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DG, the sentiment is Positive. The current price of 115.19 is above the 20-day moving average (MA) of 110.12, above the 50-day MA of 111.39, and above the 200-day MA of 88.02, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 61.10 is Neutral, neither overbought nor oversold. The STOCH value of 80.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DG.

Dollar General Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BJ	80 Outperform	$14.19B	24.98	32.76%	―	2.84%	11.25%
OLLI	78 Outperform	$8.29B	41.56	12.32%	―	8.70%	2.54%
DG	77 Outperform	$25.21B	21.85	15.69%	2.06%	4.77%	-23.73%
WMT	74 Outperform	$829.40B	44.59	22.80%	0.85%	4.22%	-0.17%
TGT	71 Outperform	$47.26B	11.43	29.08%	4.27%	-0.69%	2.03%
Sector *	63 Neutral	$21.00B	13.77	-6.24%	3.09%	3.49%	-6.25%
DLTR	60 Neutral	$23.85B	―	19.25%	―	-20.46%	-202.26%

Dollar General Corporate Events

Dollar General CFO Resignation Announced July 2025

On July 11, 2025, Dollar General Corporation announced that Kelly M. Dilts, their Executive Vice President and Chief Financial Officer, will resign effective August 28, 2025, to pursue another opportunity. The company has initiated a search for her replacement, which could impact its financial leadership and strategic planning.

The most recent analyst rating on (DG) stock is a Buy with a $125.00 price target. To see the full list of analyst forecasts on Dollar General stock, see the DG Stock Forecast page.

Dollar General Holds Annual Shareholders Meeting

Dollar General held its Annual Meeting of Shareholders on May 29, 2025, where several directors were elected to serve until the next annual meeting in 2026. The meeting also saw the approval of the compensation for the company’s named executive officers and the ratification of Ernst & Young LLP as the independent registered public accounting firm for fiscal year 2025. However, several shareholder proposals, including those related to human rights policy, food waste transparency, and employee healthcare, were not approved. Additionally, the Board of Directors declared a quarterly cash dividend of $0.59 per share, payable on July 22, 2025.

The most recent analyst rating on (DG) stock is a Buy with a $170.00 price target. To see the full list of analyst forecasts on Dollar General stock, see the DG Stock Forecast page.