Dollar General (DG) AI Stock Analysis

• Market Cap: $24.31B
• Dividend Yield: 2.18%
• Average Volume (3M): 2.91M
• Price to Earnings (P/E): 20.4
• Beta (1Y): -0.18
• Revenue Growth: 4.98%
• EPS Growth: -15.98%
• Country: US
• Employees: 194,200
• Sector: Consumer Defensive
• Sector Strength: 48
• Industry: Discount Stores
• EPS (TTM): 1.86
• Shares Outstanding: 220,106,030
• 10 Day Avg. Volume: 3,463,969
• 30 Day Avg. Volume: 2,912,951
• 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: 1.64
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 3.17
• Enterprise Value/Ebitda: 14.20
• 1Y Price Target: $122.76
• Price Target Upside: 13.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22

• Rating: 71 Outperform
• Price Target: $123.00 ▲(13.43% Upside)

Dollar General's overall stock score is driven by its strong earnings performance and strategic initiatives in digital and delivery expansions. However, financial risks from high leverage and declining cash flow generation, along with neutral technical indicators, moderate the score.

Positive Factors

Customer Engagement

Dollar General is benefiting from increased spending by core customers and trade-ins from higher income customers.

Earnings

Dollar General's recent earnings and gross margin performance exceeded expectations, indicating strong operational results.

Guidance

Dollar General has raised its future earnings and comparable sales guidance, reflecting confidence in its growth outlook.

Negative Factors

Long-term Concerns

Long-term concerns exist that Dollar General will struggle to achieve its 6-7% EBIT margin goal.

Market Competition

Dollar General is in a competitive market where Walmart's ability to deliver value and convenience is driving market share gains.

Market Expectations

The stock has performed well, implying increased market expectations, and long-term issues remain, which skews the risk/reward more negative.

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 demonstrates steady revenue growth and stable gross margins, but faces challenges with declining profitability margins and high leverage. The balance sheet's high debt levels and reduced return on equity highlight potential financial risks. Cash flow generation has weakened, impacting the company's ability to fund operations and growth initiatives.

Income Statement

Dollar General's income statement shows a consistent revenue growth trajectory, with a TTM revenue growth rate of 1.26%. The gross profit margin remains stable around 30%, indicating efficient cost management. However, the net profit margin has decreased over time, currently at 2.86% TTM, suggesting pressure on profitability. The EBIT and EBITDA margins have also declined, reflecting potential challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.13 TTM, indicating significant leverage, which could pose risks in a rising interest rate environment. Return on equity has decreased to 15.64% TTM, down from previous years, suggesting reduced profitability from shareholders' equity. The equity ratio is relatively low, highlighting a reliance on debt financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a negative growth rate of -3.67% TTM. The operating cash flow to net income ratio is 0.47 TTM, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.59 TTM, reflecting a decrease in cash available for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.65B	40.61B	38.69B	37.84B	34.22B	33.75B
Gross Profit	12.56B	12.02B	11.72B	11.82B	10.81B	10.72B
EBITDA	2.80B	2.69B	3.30B	4.05B	3.86B	4.13B
Net Income	1.19B	1.13B	1.66B	2.42B	2.40B	2.66B
Balance Sheet
Total Assets	31.65B	31.13B	30.80B	29.08B	26.33B	25.86B
Cash, Cash Equivalents and Short-Term Investments	1.28B	932.58M	537.28M	381.58M	344.83M	1.38B
Total Debt	17.07B	17.46B	18.09B	17.66B	14.25B	13.59B
Total Liabilities	23.64B	23.72B	24.05B	23.54B	20.07B	19.20B
Stockholders Equity	8.01B	7.41B	6.75B	5.54B	6.26B	6.66B
Cash Flow
Free Cash Flow	1.85B	1.69B	691.58M	423.97M	1.80B	2.85B
Operating Cash Flow	3.16B	3.00B	2.39B	1.98B	2.87B	3.88B
Investing Cash Flow	-1.30B	-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: Negative
• Last Price: 108.44
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DG, the sentiment is Negative. The current price of 108.44 is below the 20-day moving average (MA) of 112.64, below the 50-day MA of 111.65, and above the 200-day MA of 90.76, indicating a neutral trend. The MACD of -0.46 indicates Positive momentum. The RSI at 41.61 is Neutral, neither overbought nor oversold. The STOCH value of 39.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DG.

Dollar General Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLLI	73 Outperform	$7.75B	37.29	12.63%	―	10.14%	5.01%
TGT	72 Outperform	$42.00B	10.78	26.32%	4.85%	-1.55%	-11.41%
DG	71 Outperform	$24.31B	20.43	15.60%	2.18%	4.98%	-15.98%
KR	70 Outperform	$44.85B	18.66	24.06%	1.93%	-2.11%	25.03%
Sector *	63 Neutral	$20.49B	14.78	-2.98%	3.11%	1.86%	-5.76%
ACI	61 Neutral	$10.78B	11.74	31.10%	2.95%	1.96%	-14.99%
DLTR	53 Neutral	$23.24B	―	20.07%	―	-29.67%	-178.03%

Dollar General Corporate Events

Dollar General Declares Quarterly Cash Dividend

On August 27, 2025, Dollar General‘s Board of Directors declared a quarterly cash dividend of $0.59 per share, payable by October 21, 2025, to shareholders recorded by October 7, 2025. This announcement reflects the company’s financial strategy and commitment to returning value to its shareholders, potentially impacting investor confidence and market perception.

Dollar General Appoints New CFO Amid Leadership Changes

On August 19, 2025, Dollar General announced the appointment of Donny H. Lau as the new Executive Vice President and Chief Financial Officer, effective October 20, 2025, following the resignation of Kelly M. Dilts. Todd J. Vasos, the CEO, will temporarily assume the role of principal financial officer until Mr. Lau’s commencement. Mr. Lau, who has extensive experience within the company and other organizations, will receive a comprehensive compensation package, including a base salary, bonuses, and equity awards. This leadership change is expected to maintain the company’s strategic financial direction and stability.

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.

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.