Dollar General (DG) AI Stock Analysis

• Market Cap: $30.15B
• Dividend Yield: 1.88%
• Average Volume (3M): 4.03M
• Price to Earnings (P/E): 23.6
• Beta (1Y): -0.12
• 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: 6,530,241
• 30 Day Avg. Volume: 4,033,409
• 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: 1.23
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 2.89
• Enterprise Value/Ebitda: 12.69
• 1Y Price Target: $139.08
• Price Target Upside: 1.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $138.00 ▲(0.97% Upside)

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

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Digital and Delivery Expansion

Expanding digital and delivery services enhances customer convenience and market reach, driving future sales growth.

Leadership Changes

Strategic leadership appointments can drive operational improvements and support the company's growth and efficiency goals.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting long-term financial stability.

Profitability Margin Decline

Decreasing profitability margins may pressure earnings and indicate challenges in cost management or pricing power.

Consumer Spending Pressure

Increased consumer spending pressure can lead to smaller basket sizes, potentially affecting sales and profitability.

Dollar General Business Overview & Revenue Model

Company Description

Dollar General (DG) is a leading discount retailer in the United States, operating thousands of stores across the country. The company focuses on providing a wide range of everyday essentials, including consumables, seasonal items, home products, and apparel, at low prices. Dollar General caters primarily to low- and middle-income households, emphasizing convenience and value in its product offerings. With a commitment to serving rural and underserved areas, the company has established itself as a trusted shopping destination for budget-conscious consumers.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 136.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 136.68 is above the 20-day moving average (MA) of 119.79, above the 50-day MA of 109.13, and above the 200-day MA of 102.76, indicating a bullish trend. The MACD of 8.56 indicates Negative momentum. The RSI at 77.20 is Negative, neither overbought nor oversold. The STOCH value of 94.07 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
FIVE	76 Outperform	$9.85B	32.69	17.27%	―	15.78%	14.99%
OLLI	73 Outperform	$6.73B	30.24	12.96%	―	12.58%	7.80%
DG	73 Outperform	$30.15B	23.65	16.45%	1.88%	4.86%	-4.51%
TGT	70 Neutral	$44.65B	11.96	25.09%	4.58%	-2.16%	-12.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLTR	61 Neutral	$25.52B	-9.42	20.07%	―	-39.27%	-182.36%
KR	56 Neutral	$40.38B	58.44	7.75%	2.10%	-1.77%	-70.83%

Dollar General Corporate Events

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.

Dollar General Appoints Emily C. Taylor as COO

On November 12, 2025, Dollar General Corporation announced the appointment of Emily C. Taylor as Chief Operating Officer, effective November 16, 2025. Taylor, who has been with the company since 1998, will oversee store operations, global supply chain, merchandising, marketing, and more. Her promotion is accompanied by a salary increase and additional incentives. The company also announced other leadership changes, including the promotion of Bryan Wheeler to Executive Vice President and Chief Merchandising Officer, and the elevation of Pooh Vichidvongsa and Shareeka Meadows to senior vice president roles. These changes are part of Dollar General’s strategic growth and leadership development efforts.