Dollar General Corporation (DG) AI Stock Analysis

Dollar General Corporation is a discount retailer operating across the southern, southwestern, Midwestern, and eastern United States. Headquartered in Goodlettsville, Tennessee, the company offers a broad merchandise assortment centered on consumables, including paper products, cleaning supplies, packaged foods, perishables, beverages, snacks, health and beauty items, pet supplies, and tobacco. It also sells seasonal goods such as holiday decorations, toys, and gardening supplies, along with home products like kitchenware and storage solutions. In addition, the retailer provides everyday apparel, socks, underwear, and shoes for all ages, focusing on value and convenience for shoppers across its markets.

Dollar General's revenue expanded at a 5-year CAGR of 4.8% from FY2021 to FY2026. Annual revenue grew from $34.22B in FY2022 to $42.72B in FY2026, delivering 5.2% revenue growth in FY2026. However, net income fell from $2.40B in FY2022 to $1.13B in FY2025 before recovering to $1.51B in FY2026, while gross margin moved from 31.6% to 30.7%. Over the trailing twelve months, revenue reached $43.64B with a profit margin of 3.9% and an operating margin of 6.8%. In the latest quarter ended July 31, 2026, quarterly revenue grew 5.2% year-over-year and quarterly earnings rose 33.3%.

As of July 31, 2026, Dollar General held $1.59B in cash and short-term investments against $15.61B in total debt, resulting in net debt of $14.02B. Total assets stood at $32.17B and shareholders' equity was $9.29B, reflecting a debt-to-equity ratio of 1.68 and a current ratio of 1.21. In FY2026, the company generated $3.63B in operating cash flow and $2.39B in free cash flow. Capital expenditures totaled $1.24B and dividends paid were $519.5M, while share count fell 5.4% over five years.

At a last close of $134.36 on October 16, 2026, Dollar General trades at a market cap of $29.64B and an enterprise value of $40.79B. Its trailing P/E of 17.4x sits below the 23.5x median of its S&P 500 Consumer Defensive peers, while its forward P/E of 15.3x aligns closely with the peer median of 15.2x. The stock trades at an EV/EBITDA of 11.6x, compared to the peer median of 14.8x. Over the past year, Dollar General delivered a 31.8% return, outperforming the S&P 500 return of 16.8%, but its 5-year return of -31.1% trails the S&P 500 5-year gain of 83.0%.

Dollar General pays a forward annual dividend of $2.36 per share, yielding 1.76% with a payout ratio of 31.7%. The company has paid quarterly dividends for 12 consecutive years and achieved a 5-year annualized dividend growth rate of 11.0%. Its last ex-dividend date was October 6, 2026.

Wall Street analysts maintain 10 Strong Buy, 3 Buy, 17 Hold, 0 Sell, and 1 Strong Sell ratings on Dollar General. The mean price target is $142.83, implying a 6.3% upside compared to the last close of $134.36. For the current fiscal year ending January 31, 2027, consensus estimates project revenue of $44.55B and EPS of $7.91, representing 15.4% EPS growth. The company beat EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for December 3, 2026.

This page is an AI-written research summary of Dollar General Corporation (DG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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