📊 DG Key Takeaways
Is Dollar General Corp. (DG) a Good Investment?
Dollar General demonstrates strong earnings acceleration (34.4% net income growth) and positive free cash flow generation, but concerning liquidity metrics and dangerously low interest coverage (2.0x) create material financial stress despite operational efficiency gains. The discount retail model generates adequate cash flow but leaves minimal room for adverse conditions.
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.
Dollar General Corp. Key Strengths (DG)
- Strong net income growth (34.4% YoY) significantly exceeding revenue growth (5.2%) indicates improving operational efficiency and margin expansion
- Positive free cash flow of $364.6M demonstrates cash generation capability for debt service and reinvestment
- Reasonable debt-to-equity ratio (0.52x) and moderate leverage relative to retail peers
- 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
- Critical interest coverage ratio of 2.0x leaves minimal cushion for operational deterioration or debt service stress
- Weak liquidity indicators: quick ratio of 0.25x and current ratio of 1.17x suggest heavy inventory dependence and near-term cash constraints
- Thin net margin (4.1%) and operating margin (5.9%) with low returns on equity (5.0%) and assets (1.4%) provide negligible flexibility for adverse business changes
- 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
- Interest coverage ratio trend - critical given 2.0x current level
- Free cash flow sustainability and conversion rate relative to operating cash flow
- Gross margin trajectory given competitive discount retail environment
- Operating margin trend
- Free cash flow consistency
Dollar General Corp. (DG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.4% FCF margin may limit capital allocation flexibility.
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 |
|---|---|---|---|
| Q1 2026 | $10.4B | $391.9M | $1.78 |
| 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 |
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 Grade of B from Claude (B) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DG's key strengths?
Claude: Strong net income growth (34.4% YoY) significantly exceeding revenue growth (5.2%) indicates improving operational efficiency and margin expansion. Positive free cash flow of $364.6M demonstrates cash generation capability for debt service and reinvestment. 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: Critical interest coverage ratio of 2.0x leaves minimal cushion for operational deterioration or debt service stress. Weak liquidity indicators: quick ratio of 0.25x and current ratio of 1.17x suggest heavy inventory dependence and near-term cash constraints. 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 $10.8B.
Does DG pay dividends?
Dollar General Corp. pays dividends, with $130.1M 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 $2.00.
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 grade reflects both perspectives for balanced insights.
What is DG's fundamental grade?
Based on our AI fundamental analysis in June 2026, Dollar General Corp. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DG stock overvalued or undervalued?
Valuation metrics for DG: ROE of 5.0% (sector avg: 18%), net margin of 4.1% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is DG's AI grade for 2026?
Our dual AI analysis gives Dollar General Corp. a combined B grade 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 $716.2M, with capital expenditures of $351.6M. FCF margin is 3.4%.
How does DG compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 4.1% (avg: 8%), ROE 5.0% (avg: 18%), current ratio 1.17 (avg: 1.5).