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Dollar General
(NYSE:DG)
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Rating:68Neutral
Price Target:
$134.00
▲(9.32% Upside)
Action:Reiterated
Date:08/27/26
Overall score reflects a solid near-term fundamental catalyst from the earnings call (raised FY2026 guidance and margin improvement) combined with steady cash generation. These positives are tempered by still-elevated leverage and profitability that remains below prior-cycle highs, while technical signals are largely neutral and valuation is moderate with a modest dividend yield.
Positive Factors
Sales Growth and Guidance
Positive comparable sales, traffic growth and higher full-year targets indicate sustained demand for low-priced essentials. Dollar General’s broad store base and value positioning support medium-term revenue visibility if execution remains consistent.
Negative Factors
Elevated Leverage
Although leverage has improved from prior years, the debt load remains material relative to equity. This can constrain financial flexibility, increase sensitivity to operating setbacks and compete with store investment or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Sales Growth and Guidance
Positive comparable sales, traffic growth and higher full-year targets indicate sustained demand for low-priced essentials. Dollar General’s broad store base and value positioning support medium-term revenue visibility if execution remains consistent.
Read all positive factors
Dollar General Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, highlighting which areas drive growth and profitability.
Breaks down revenue across different business segments, highlighting which areas drive growth and profitability.
Data provided by:
The Fly
The FlyDollar General (DG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.96B
Dividend Yield1.8%
Average Volume (3M)2.25M
Price to Earnings (P/E)17.0
Beta (1Y)<0.01
Revenue Growth4.77%
EPS Growth42.79%
CountryUS
Employees194,000
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)7.73
Shares Outstanding220,616,790
10 Day Avg. Volume2,926,244
30 Day Avg. Volume2,252,775
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$144.56Price Target Upside17.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)7.83
Revenue Forecast (FY)$44.51B
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:Dec 03, 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
64
Positive
Balance Sheet
58
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 43.64B | 42.72B | 40.61B | 38.69B | 37.84B | 34.22B |
| Gross Profit | 13.60B | 13.10B | 12.02B | 11.72B | 11.82B | 10.81B |
| EBITDA | 3.24B | 3.24B | 2.69B | 3.30B | 4.05B | 3.86B |
| Net Income | 1.70B | 1.51B | 1.13B | 1.66B | 2.42B | 2.40B |
Balance Sheet | ||||||
| Total Assets | 32.17B | 30.96B | 31.13B | 30.80B | 29.08B | 26.33B |
| Cash, Cash Equivalents and Short-Term Investments | 1.59B | 1.14B | 932.58M | 537.28M | 381.58M | 344.83M |
| Total Debt | 15.61B | 15.72B | 17.46B | 18.09B | 17.66B | 14.25B |
| Total Liabilities | 22.88B | 22.45B | 23.72B | 24.05B | 23.54B | 20.07B |
| Stockholders Equity | 9.29B | 8.51B | 7.41B | 6.75B | 5.54B | 6.26B |
Cash Flow | ||||||
| Free Cash Flow | 2.70B | 2.39B | 1.69B | 691.58M | 423.97M | 1.80B |
| Operating Cash Flow | 4.32B | 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 | -2.45B | -2.19B | -1.29B | -542.07M | -392.46M | -2.83B |
Dollar General Technical Analysis
Positive
122.58
Price Trends
121.83
Positive
116.80
Positive
124.77
Positive
Market Momentum
1.31
Negative
62.59
Neutral
62.71
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 122.58 is below the 20-day moving average (MA) of 123.65, above the 50-day MA of 121.83, and below the 200-day MA of 124.77, indicating a bullish trend. The MACD of 1.31 indicates Negative momentum. The RSI at 62.59 is Neutral, neither overbought nor oversold. The STOCH value of 62.71 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $27.96B | 16.96 | 19.56% | 2.01% | 4.77% | 42.79% | |
68 Neutral | $73.09B | 16.92 | 26.66% | 3.33% | 1.95% | 12.49% | |
67 Neutral | $23.75B | 16.06 | 45.58% | ― | -7.85% | ― | |
67 Neutral | $832.01B | 38.24 | 22.74% | 0.88% | 6.16% | 4.00% | |
66 Neutral | $4.56B | 17.73 | 13.49% | ― | 16.74% | 24.35% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
53 Neutral | $35.25B | 33.49 | 14.66% | 2.46% | 1.14% | -53.47% |
* Consumer Defensive Sector Average
DG
Dollar General
130.89
23.38
21.75%
DLTR
Dollar Tree
131.91
29.88
29.29%
KR
Kroger Company
58.22
-8.47
-12.70%
TGT
Target
163.36
74.61
84.06%
WMT
Walmart
106.09
7.48
7.58%
OLLI
Ollie's Bargain Outlet Holding
73.87
-54.70
-42.54%
Dollar General Corporate Events
Stock BuybackDividends
Dollar General Declares Dividend, Plans Share Repurchases
Positive
Aug 27, 2026
Dollar General announced that its Board of Directors declared a quarterly cash dividend of $0.59 per share on August 26, 2026, payable on or before October 20, 2026, to shareholders of record as of October 6, 2026. The company also indicated it ex...
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.