Want to see DG full AI Analyst Report?
Top Page
Dollar General
(NYSE:DG)
Select Model
Select Model
Rating:62Neutral
Price Target:
$127.00
▲(0.25% Upside)
Action:Reiterated
Date:06/02/26
Overall score reflects stable but margin-pressured financial performance with solid cash flow and meaningful leverage, partially offset by a constructive earnings call (guidance raise and margin/shrink momentum). Technicals remain a headwind due to the stock trading below key medium/long-term moving averages despite neutral momentum indicators, while valuation and dividend provide moderate support.
Positive Factors
Cash generation
Sustained operating cash flow (~$4.5B TTM) and healthy free cash flow (~$2.9B TTM) provide durable internal funding for remodels, store growth, dividends and debt service. Reliable cash conversion supports capital allocation flexibility even if FCF growth moderates.
Negative Factors
Elevated leverage
A sizable absolute debt load and meaningful leverage limit financial flexibility for buybacks or aggressive investment. Interest and refinancing exposure raise sensitivity to cash-flow swings and could constrain pace of deleveraging if margins face pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained operating cash flow (~$4.5B TTM) and healthy free cash flow (~$2.9B TTM) provide durable internal funding for remodels, store growth, dividends and debt service. Reliable cash conversion supports capital allocation flexibility even if FCF growth moderates.
Read all positive factors
Dollar General Key Performance Indicators (KPIs)
Any
Store Count
Indicates the total number of stores in operation, providing insight into the company's market reach and expansion strategy.
Indicates the total number of stores in operation, providing insight into the company's market reach and expansion strategy.
Data provided by:
The Fly
The FlyDollar General (DG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.07B
Dividend Yield1.88%
Average Volume (3M)4.24M
Price to Earnings (P/E)16.6
Beta (1Y)0.07
Revenue Growth4.72%
EPS Growth35.43%
CountryUS
Employees194,200
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)7.11
Shares Outstanding220,586,640
10 Day Avg. Volume3,503,955
30 Day Avg. Volume4,237,474
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)3.71
Price to Sales (P/S)0.74
P/FCF Ratio13.19
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue0.89
Enterprise Value/Gross Profit2.89
Enterprise Value/Ebitda11.57
Forecast
1Y Price Target
$138.00Price Target Upside8.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)7.36
Revenue Forecast (FY)$44.40B
Dollar General Business Overview & Revenue Model
Company Description
Dollar General Corporation is a prominent discount retail chain that offers a wide array of merchandise across the southern, southwestern, Midwestern, and eastern regions of the United States. Its extensive product assortment primarily features co...
How the Company Makes Money
Dollar General makes money primarily by selling merchandise to customers through its retail stores. Its main revenue stream is net sales generated at the register, with a significant portion typically coming from high-frequency consumable categori...
Dollar General Earnings Call Summary
Earnings Call Date:Jun 02, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 27, 2026
Earnings Call Sentiment Positive
The call presented a largely positive picture: solid top-line growth (3.4% sales lift), strong margin expansion (65 bps gross margin improvement), an EPS beat (+12.4% to $2.00) and an upward revision to full-year EPS guidance. Execution highlights include meaningful shrink and damage improvements, strong Value Valley ($1) performance (+18.4% comp), delivery scaling (~70 bps comp contribution) and progress on remodels and new-store expansion. Headwinds include elevated fuel and transportation costs, modest SG&A deleverage, SNAP reductions pressuring low-income customers, uncertainty around tariff refunds, and the need to carefully manage increased promotional activity. Overall, the positive financial results, margin momentum, guidance raise and strategic progress outweigh the operational and macro risks discussed.Positive Updates
Top-Line Growth
Net sales increased 3.4% to $10.8 billion (from $10.4 billion) and same-store sales rose 2.0%, driven by customer traffic growth of 1.4% and average basket growth of 0.5 points.
Negative Updates
Higher Fuel and Field Costs
Severe weather and elevated fuel prices caused temporary store closures early in the quarter and contributed to higher-than-anticipated field and transportation costs; fuel costs expected to remain elevated vs prior year for the balance of 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-Line Growth
Net sales increased 3.4% to $10.8 billion (from $10.4 billion) and same-store sales rose 2.0%, driven by customer traffic growth of 1.4% and average basket growth of 0.5 points.
Read all positive updates
Company Guidance
Management raised full‑year 2026 guidance off a strong Q1 and now expects net sales growth of 3.7%–4.2%, same‑store sales of 2.2%–2.7% and EPS of $7.20–$7.45 (up from $7.10–$7.35), with an assumed effective tax rate of ~24.5%; capital spending and real estate plans are unchanged, inventory is expected to grow below the sales curve, and the board approved a Q2 cash dividend of $0.59 per share (guidance does not assume share repurchases). They continue to target long‑term operating margin of 6%–7% and a leverage goal of <3x debt to adjusted EBITDAR, expect modest SG&A deleverage while still driving full‑year gross margin expansion, and quantified margin drivers including ~50 bps incremental benefit from shrink/damages (on top of >80 bps delivered in 2025), ~50 bps from the DG Media Network over 3–4 years and ~70 bps from other gross‑margin initiatives.Dollar General Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
54
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 43.08B | 42.72B | 40.61B | 38.69B | 37.84B | 34.22B |
| Gross Profit | 13.28B | 13.10B | 12.02B | 11.72B | 11.82B | 10.81B |
| EBITDA | 3.32B | 3.24B | 2.69B | 3.30B | 4.05B | 3.86B |
| Net Income | 1.56B | 1.51B | 1.13B | 1.66B | 2.42B | 2.40B |
Balance Sheet | ||||||
| Total Assets | 31.70B | 30.96B | 31.13B | 30.80B | 29.08B | 26.33B |
| Cash, Cash Equivalents and Short-Term Investments | 1.35B | 1.14B | 932.58M | 537.28M | 381.58M | 344.83M |
| Total Debt | 15.80B | 15.72B | 17.46B | 18.09B | 17.66B | 14.25B |
| Total Liabilities | 22.86B | 22.45B | 23.72B | 24.05B | 23.54B | 20.07B |
| Stockholders Equity | 8.84B | 8.51B | 7.41B | 6.75B | 5.54B | 6.26B |
Cash Flow | ||||||
| Free Cash Flow | 2.89B | 2.39B | 1.69B | 691.58M | 423.97M | 1.80B |
| Operating Cash Flow | 4.51B | 3.63B | 3.00B | 2.39B | 1.98B | 2.87B |
| Investing Cash Flow | -1.61B | -1.24B | -1.31B | -1.69B | -1.56B | -1.07B |
| Financing Cash Flow | -2.44B | -2.19B | -1.29B | -542.07M | -392.46M | -2.83B |
Dollar General Technical Analysis
Positive
126.68
Price Trends
111.54
Positive
123.03
Negative
120.65
Negative
Market Momentum
1.91
Negative
57.93
Neutral
59.13
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 126.68 is above the 20-day moving average (MA) of 113.20, above the 50-day MA of 111.54, and above the 200-day MA of 120.65, indicating a neutral trend. The MACD of 1.91 indicates Negative momentum. The RSI at 57.93 is Neutral, neither overbought nor oversold. The STOCH value of 59.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DG.
Dollar General Risk Analysis
Dollar General disclosed 25 risk factors in its most recent earnings report. Dollar General reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dollar General Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $59.14B | 17.11 | 21.74% | 4.79% | 0.47% | -16.65% | |
73 Outperform | $23.84B | 19.35 | 35.90% | ― | -19.68% | ― | |
69 Neutral | $10.09B | 22.83 | 21.07% | ― | 25.87% | 66.82% | |
68 Neutral | $4.49B | 18.19 | 13.49% | ― | 16.74% | 24.35% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $26.07B | 16.62 | 18.65% | 1.88% | 4.72% | 35.43% | |
53 Neutral | $35.67B | 33.65 | 13.04% | 2.15% | 1.14% | -53.47% |
* Consumer Defensive Sector Average
DG
Dollar General
118.17
6.33
5.66%
DLTR
Dollar Tree
124.05
22.14
21.73%
KR
Kroger Company
58.22
-10.18
-14.89%
TGT
Target
130.21
30.51
30.61%
FIVE
Five Below
182.43
49.89
37.64%
OLLI
Ollie's Bargain Outlet Holding
74.21
-56.69
-43.31%
Dollar General Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresShareholder Meetings
Dollar General Declares Quarterly Dividend, Affirms 2026 Outlook
Positive
Jun 2, 2026
Dollar General shareholders met on May 28, 2026, electing all nominated directors to serve until the 2027 annual meeting and approving, on an advisory basis, the compensation of named executive officers. Investors also ratified Ernst Young LLP as...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.