Dollar General (DG) AI Stock Analysis

• Market Cap: $25.19B
• Dividend Yield: 2.06%
• Average Volume (3M): 3.80M
• Price to Earnings (P/E): 21.8
• Beta (1Y): -0.19
• Revenue Growth: 4.77%
• EPS Growth: -23.73%
• Country: US
• Employees: 194,200
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Discount Stores
• EPS (TTM): 1.78
• Shares Outstanding: 220,070,620
• 10 Day Avg. Volume: 3,222,493
• 30 Day Avg. Volume: 3,798,475
• PEG Ratio: 8.36
• Price to Book (P/B): 3.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.78
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 3.32
• Enterprise Value/Ebitda: 3.92
• 1Y Price Target: $116.18
• Price Target Upside: 0.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23

• Rating: 77 Outperform
• Price Target: $126.00 ▲(9.28%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

Earnings Performance

DG delivered an encouraging Q1 beat; momentum inflected after a long run of weakness.

Market Share

Dollar General is gaining market share from traditional grocery and drug stores, indicating competitive strength.

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 Positioning

A still intense competitive environment which could impact the strength of SSS.

Dollar General Business Overview & Revenue Model

Company Description

Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, Midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine. The company's consumable products also comprise snacks, such as candies, cookies, crackers, salty snacks, and carbonated beverages; health and beauty products, including over-the-counter medicines and personal care products, such as soaps, body washes, shampoos, cosmetics, and dental hygiene and foot care products; pet supplies and pet food; and tobacco products. In addition, it offers seasonal products comprising holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, and automotive and home office supplies; and home products that include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, and bed and bath soft goods. Further, the company provides apparel, which comprise casual everyday apparel for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories. As of February 25, 2022, it operated 18,190 stores in 47 states in the United States. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.

How the Company Makes Money

Dollar General generates revenue primarily through the sale of general merchandise and consumables at its retail locations. The company's revenue model is largely based on high-volume sales of low-cost goods, which include categories such as food, cleaning supplies, paper products, health and beauty aids, pet supplies, and basic apparel. A significant contributor to Dollar General's earnings is its expansive network of over 17,000 stores, strategically located to maximize accessibility for underserved communities. The company also benefits from efficient supply chain management and strategic partnerships with suppliers, enabling it to maintain competitive pricing and attractive product margins. Additionally, Dollar General has been expanding its private label offerings, which tend to have higher profit margins compared to national brands, further enhancing its profitability.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	2.24B	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: 115.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 115.3 is above the 20-day moving average (MA) of 112.99, above the 50-day MA of 102.03, and above the 200-day MA of 84.54, indicating a bullish trend. The MACD of 3.65 indicates Positive momentum. The RSI at 67.48 is Neutral, neither overbought nor oversold. The STOCH value of 87.91 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
WMT	78 Outperform	$784.00B	42.15	22.80%	0.96%	4.22%	-0.17%
OLLI	78 Outperform	$8.00B	40.13	12.32%	―	8.70%	2.54%
DG	77 Outperform	$25.19B	21.83	15.69%	2.06%	4.77%	-23.73%
BJ	75 Outperform	$14.13B	24.89	32.76%	―	2.84%	11.25%
Sector *	67 Neutral	¥251.03B	12.88	6.57%	2.80%	5.06%	-11.39%
TGT	66 Neutral	$45.09B	10.91	29.08%	4.54%	-0.69%	2.03%
DLTR	58 Neutral	$20.60B	―	19.25%	―	-20.46%	-202.26%

Dollar General Corporate Events

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.