Dollar General (DG) AI Stock Analysis

• Market Cap: $33.46B
• Dividend Yield: 1.88%
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): 26.2
• Beta (1Y): -0.13
• Revenue Growth: 4.86%
• EPS Growth: -4.51%
• Country: US
• Employees: 194,200
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 1.28
• Shares Outstanding: 220,118,870
• 10 Day Avg. Volume: 2,336,752
• 30 Day Avg. Volume: 2,720,913
• PEG Ratio: -0.43
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 9.27
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 3.84
• Enterprise Value/Ebitda: 16.83
• 1Y Price Target: $149.35
• Price Target Upside: -2.32% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $168.00 ▲(9.88% Upside)
• Action: Upgraded Date: 12/09/25
• Date: Action: Upgraded 12/09/25

Dollar General's stock score is driven by strong earnings performance and positive technical indicators. While financial performance shows consistent growth, challenges with profitability margins and high leverage are notable risks. The stock's valuation is fair, and recent corporate events support a positive outlook.

Positive Factors

Extensive store footprint

A large, growing store base and systematic remodel program provide durable distribution and local market share advantages. New openings and remodels that lift first-year sales support steady revenue expansion, improve unit economics, and deepen presence in underserved rural markets over months to years.

Strong cash generation & debt paydown

Robust operating cash flow and active debt reduction improve financial flexibility and fund growth capex without dilutive financing. Continued free cash flow strength supports store investment, remodels, and modest shareholder returns while helping reduce interest burden over the medium term.

Low-cost, private-label model

A focused low-cost assortment and private-label penetration create a structural margin and inventory-turn advantage versus full-assortment grocers. This model sustains recurring traffic, enables price competitiveness in downcycles, and supports steady gross margins and cash conversion over multiple quarters.

Negative Factors

High leverage

Significant leverage raises refinancing and interest-rate sensitivity risks, constraining capital allocation during economic stress. Even with healthy ROE, high debt limits flexibility for opportunistic investments, increases fixed costs, and could pressure credit metrics if cash generation softens.

Declining operating profitability

Compression in operating margins suggests rising structural costs or reduced pricing power. If SG&A and other operating expenses outpace sales growth, margin recovery may be slow, pressuring medium-term earnings power despite stable gross margin performance.

Rising SG&A & pressured core customer

Higher SG&A (incentive comp and other costs) combined with a customer base facing spending pressure can persistently limit basket size and margin expansion. Management may need sustained promotional or service investments to retain traffic, eroding operating leverage over several quarters.

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 a diverse array of products at its retail locations. The company's core revenue streams include the sale of consumables (such as food, cleaning supplies, and personal care items), seasonal products, and home goods. By maintaining a low-cost business model that focuses on efficiency and a limited assortment of products, Dollar General achieves high inventory turnover. The company also benefits from its private-label brands, which typically yield higher margins compared to national brands. Additionally, Dollar General's strategic partnerships with suppliers and manufacturers enable it to negotiate favorable pricing, further enhancing profitability. The company's growth strategy includes expanding its store footprint, optimizing supply chain operations, and leveraging digital initiatives, all contributing to its overall revenue growth.

Dollar General Financial Statement Overview

Summary

Dollar General demonstrates consistent revenue growth and strong cash flow generation, but faces challenges with declining profitability margins and high leverage. The company effectively utilizes equity to generate returns, yet relies heavily on debt financing. While the financial position is stable, there are areas for improvement in profitability and leverage management.

Income Statement

Dollar General's revenue growth has been consistent, with a notable increase in the TTM period. However, the company has experienced a decline in profitability margins, such as EBIT and EBITDA margins, compared to previous years. The gross profit margin remains stable, indicating efficient cost management. Overall, the income statement reflects moderate growth with some pressure on profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. However, the return on equity remains healthy, reflecting effective use of equity to generate profits. The equity ratio is relatively low, suggesting a higher reliance on debt financing. Overall, the balance sheet highlights a leveraged position with strong equity returns.

Cash Flow

Cash flow analysis reveals strong free cash flow growth in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is stable, suggesting efficient cash conversion. However, the free cash flow to net income ratio is moderate, indicating room for improvement in cash flow efficiency. Overall, the cash flow statement reflects solid cash generation with potential for enhanced efficiency.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	42.12B	40.61B	38.69B	37.84B	34.22B	33.75B
Gross Profit	12.81B	12.02B	11.72B	11.82B	10.81B	10.72B
EBITDA	2.92B	2.69B	3.30B	4.05B	3.86B	4.13B
Net Income	1.28B	1.13B	1.66B	2.42B	2.40B	2.66B
Balance Sheet
Total Assets	31.72B	31.13B	30.80B	29.08B	26.33B	25.86B
Cash, Cash Equivalents and Short-Term Investments	1.24B	932.58M	537.28M	381.58M	344.83M	1.38B
Total Debt	16.51B	17.46B	18.09B	17.66B	14.25B	13.59B
Total Liabilities	23.53B	23.72B	24.05B	23.54B	20.07B	19.20B
Stockholders Equity	8.19B	7.41B	6.75B	5.54B	6.26B	6.66B
Cash Flow
Free Cash Flow	2.34B	1.69B	691.58M	423.97M	1.80B	2.85B
Operating Cash Flow	3.62B	3.00B	2.39B	1.98B	2.87B	3.88B
Investing Cash Flow	-1.28B	-1.31B	-1.69B	-1.56B	-1.07B	-1.02B
Financing Cash Flow	-1.64B	-1.29B	-542.07M	-392.46M	-2.83B	-1.71B

Dollar General Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 152.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 152.9 is above the 20-day moving average (MA) of 148.04, above the 50-day MA of 143.20, and above the 200-day MA of 115.01, indicating a bullish trend. The MACD of 2.78 indicates Negative momentum. The RSI at 60.62 is Neutral, neither overbought nor oversold. The STOCH value of 69.85 is Neutral, 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
FIVE	73 Outperform	$11.82B	38.78	17.27%	―	15.78%	14.99%
OLLI	73 Outperform	$6.79B	30.28	12.96%	―	12.58%	7.80%
DG	73 Outperform	$33.46B	26.25	16.45%	1.88%	4.86%	-4.51%
TGT	72 Outperform	$52.37B	14.03	25.09%	4.79%	-2.16%	-12.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLTR	61 Neutral	$26.36B	-9.92	20.07%	―	-39.27%	-182.36%
KR	59 Neutral	$43.58B	63.07	7.75%	2.15%	-1.77%	-70.83%

Dollar General Corporate Events

Dollar General appoints David Rowland as new chairman

On January 28, 2026, Dollar General announced that longtime director Warren F. Bryant will retire from its board at the end of his current term, concluding with the company’s 2026 annual meeting of shareholders, with the company noting that his departure does not stem from any disagreement. In a concurrent leadership shift, the board appointed current independent director David P. Rowland as chairman effective February 4, 2026, succeeding Michael M. Calbert, who will remain on the board as an independent director, signaling continuity in governance while refreshing the company’s board leadership.

The most recent analyst rating on (DG) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Dollar General stock, see the DG Stock Forecast page.

Dollar General Declares Quarterly Dividend of $0.59

On December 2, 2025, Dollar General‘s Board of Directors declared a quarterly cash dividend of $0.59 per share, payable on or before January 20, 2026, to shareholders of record on January 6, 2026. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment and stock performance.

The most recent analyst rating on (DG) stock is a Hold with a $105.00 price target. To see the full list of analyst forecasts on Dollar General stock, see the DG Stock Forecast page.