📊 DG Key Takeaways
Is Dollar General Corp. (DG) a Good Investment?
Dollar General demonstrates solid operational fundamentals with steady revenue growth of 5.2% and strong free cash flow generation of $2.4B, supported by healthy interest coverage of 6.7x and manageable leverage. The company's 17.8% ROE and 3.5% net margin reflect efficient capital deployment typical of mature retailers, though modest operating leverage and liquidity concerns present structural challenges.
Dollar General shows resilient fundamentals with positive revenue growth, solid free cash flow generation, and moderate leverage supported by healthy interest coverage. However, flat net income alongside a low operating margin suggests growth quality is only moderate, and the large EPS increase appears driven more by share count effects than underlying profit expansion. The business looks financially stable, but profitability needs to improve meaningfully to justify a more bullish view.
Why Buy Dollar General Corp. Stock? DG Key Strengths
- Strong free cash flow generation ($2.4B) with 5.6% FCF margin supports capital returns and debt reduction
- Solid profitability with 30.7% gross margin and 17.8% ROE indicating efficient asset utilization
- Consistent revenue growth of 5.2% YoY and manageable debt-to-equity ratio of 0.55x
- Adequate interest coverage ratio of 6.7x demonstrates debt service capability
- Consistent top-line growth with revenue up 5.2% year over year
- Strong cash generation with $3.63B operating cash flow and $2.39B free cash flow
- Moderate balance sheet leverage with 0.55x debt-to-equity and 6.7x interest coverage
DG Stock Risks: Dollar General Corp. Investment Risks
- Weak liquidity position with quick ratio of 0.22x and current ratio of only 1.13x raises short-term solvency concerns
- Low operating margins of 5.2% indicate limited pricing power and high cost structure vulnerability in inflationary environments
- Net income flat YoY (+0.0%) despite revenue growth suggests margin compression and operational challenges
- High leverage with $4.6B long-term debt and total liabilities of $22.5B relative to $8.5B equity creates financial risk
- Net income was flat year over year, indicating weak earnings momentum despite higher sales
- Low quick ratio of 0.22x leaves limited near-term liquidity cushion outside inventory
- Operating margin of 5.2% and net margin of 3.5% leave limited room for cost pressure or execution mistakes
Key Metrics to Watch
- Operating margin trends - any further compression signals structural cost issues
- Free cash flow sustainability and capital allocation efficiency
- Gross margin maintenance amid competitive and inflationary pressures
- Debt reduction progress and liquidity improvement initiatives
- Operating margin trend
- Free cash flow consistency
Dollar General Corp. (DG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Dollar General Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DG Profit Margin, ROE & Profitability Analysis
DG vs Consumer Sector: How Dollar General Corp. Compares
How Dollar General Corp. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Dollar General Corp. Stock Overvalued? DG Valuation Analysis 2026
Based on fundamental analysis, Dollar General Corp. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Dollar General Corp. Balance Sheet: DG Debt, Cash & Liquidity
DG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Dollar General Corp.'s revenue has grown significantly by 25% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.55 reflects profitable operations.
DG Revenue Growth, EPS Growth & YoY Performance
DG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $10.2B | $196.5M | $0.89 |
| Q2 2025 | $10.2B | $374.2M | $1.70 |
| Q1 2025 | $9.9B | $363.3M | $1.65 |
| Q3 2024 | $9.7B | $196.5M | $0.89 |
| Q2 2024 | $9.8B | $374.2M | $1.70 |
| Q1 2024 | $9.3B | $363.3M | $1.65 |
| Q3 2023 | $9.5B | $276.2M | $1.26 |
| Q2 2023 | $9.4B | $468.8M | $2.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Dollar General Corp. Dividends, Buybacks & Capital Allocation
DG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Dollar General Corp. (CIK: 0000029534)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DG
What is the AI rating for DG?
Dollar General Corp. (DG) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DG's key strengths?
Claude: Strong free cash flow generation ($2.4B) with 5.6% FCF margin supports capital returns and debt reduction. Solid profitability with 30.7% gross margin and 17.8% ROE indicating efficient asset utilization. ChatGPT: Consistent top-line growth with revenue up 5.2% year over year. Strong cash generation with $3.63B operating cash flow and $2.39B free cash flow.
What are the risks of investing in DG?
Claude: Weak liquidity position with quick ratio of 0.22x and current ratio of only 1.13x raises short-term solvency concerns. Low operating margins of 5.2% indicate limited pricing power and high cost structure vulnerability in inflationary environments. ChatGPT: Net income was flat year over year, indicating weak earnings momentum despite higher sales. Low quick ratio of 0.22x leaves limited near-term liquidity cushion outside inventory.
What is DG's revenue and growth?
Dollar General Corp. reported revenue of $42.7B.
Does DG pay dividends?
Dollar General Corp. pays dividends, with $519.5M distributed to shareholders in the trailing twelve months.
Where can I find DG SEC filings?
Official SEC filings for Dollar General Corp. (CIK: 0000029534) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DG's EPS?
Dollar General Corp. has a diluted EPS of $6.85.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DG a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Dollar General Corp. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DG stock overvalued or undervalued?
Valuation metrics for DG: ROE of 17.8% (sector avg: 18%), net margin of 3.5% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy DG stock in 2026?
Our dual AI analysis gives Dollar General Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DG's free cash flow?
Dollar General Corp.'s operating cash flow is $3.6B, with capital expenditures of $1.2B. FCF margin is 5.6%.
How does DG compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 3.5% (avg: 8%), ROE 17.8% (avg: 18%), current ratio 1.13 (avg: 1.5).