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Relative to Consumer Discretionary Sector Median (N=442)
Metric
DG
Benchmark
P/E Ratio
20.8x
-15%
EV/EBITDA
13.9x
+183%
Price / Book
3.1x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-53.2%
$54.16Spot: $115.73
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Discretionary sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
15.1%
Sector: 6.2%
Dividend Analysis audit
INCOME
2.39%
Trailing Yield
$2.39
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
50%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, DOLLAR GENERAL CORP (DG) receives a "Hold" rating with a composite score of 53.2/100, ranked #1303 out of 4446 stocks. Key factor scores: Quality 50/100, Value 68/100, Momentum 58/100. This is quantitative analysis only — not investment advice.
DOLLAR GENERAL CORP (DG) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does DOLLAR GENERAL CORP Do?
Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, Midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine. The company's consumable products also comprise snacks, such as candies, cookies, crackers, salty snacks, and carbonated beverages; health and beauty products, including over-the-counter medicines and personal care products, such as soaps, body washes, shampoos, cosmetics, and dental hygiene and foot care products; pet supplies and pet food; and tobacco products. In addition, it offers seasonal products comprising holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, and automotive and home office supplies; and home products that include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, and bed and bath soft goods. Further, the company provides apparel, which comprise casual everyday apparel for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories. As of February 25, 2022, it operated 18,190 stores in 47 states in the United States. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee. DOLLAR GENERAL CORP (DG) is classified as a large-cap stock in the Consumer Discretionary sector, specifically within the Retail industry. The company is led by CEO Jeffery C. Owen and employs approximately 163,000 people, headquartered in GOODLETTSVILLE, Tennessee. With a market capitalization of $25.8B, DG is one of the prominent companies in the Consumer Discretionary sector.
DOLLAR GENERAL CORP (DG) Stock Rating — Hold (April 2026)
As of April 2026, DOLLAR GENERAL CORP receives a Hold rating with a composite score of 53.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.DG ranks #1,303 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, DOLLAR GENERAL CORP ranks #100 of 442 stocks, placing it in the top quartile of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
DG Stock Price and 52-Week Range
DOLLAR GENERAL CORP (DG) currently trades at $115.73. The stock lost $4.02 (3.4%) in the most recent trading session. The 52-week high for DG is $158.23, which means the stock is currently trading -26.9% from its annual peak. The 52-week low is $80.51, putting the stock 43.7% above its annual trough. Recent trading volume was 3.3M shares, reflecting moderate market activity.
Is DG Overvalued or Undervalued? — Valuation Analysis
DOLLAR GENERAL CORP (DG) carries a value factor score of 68/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 20.81x, compared to the Consumer Discretionary sector average of 24.47x — a discount of 15%. The price-to-book ratio stands at 3.14x, versus the sector average of 1.99x. The price-to-sales ratio is 0.64x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, DG trades at 13.89x EV/EBITDA, versus 4.91x for the sector.
Overall, DG's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
DOLLAR GENERAL CORP Profitability — ROE, Margins, and Quality Score
DOLLAR GENERAL CORP (DG) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 15.1%, compared to the Consumer Discretionary sector average of 6.2%, which is within a healthy range. Return on assets (ROA) comes in at 4.1% versus the sector average of 2.5%.
On a margin basis, DOLLAR GENERAL CORP reports gross margins of 30.3%, compared to 36.9% for the sector. The operating margin is 4.6% (sector: 3.8%). Net profit margin stands at 3.0%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at 4.3% on a trailing basis, compared to 3.3% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
DG Debt, Balance Sheet, and Financial Health
DOLLAR GENERAL CORP has a debt-to-equity ratio of 264.0%, compared to the Consumer Discretionary sector average of 89.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.13x, suggesting adequate working capital coverage.
DG has a beta of -0.11, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for DOLLAR GENERAL CORP is 74/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
DOLLAR GENERAL CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, DOLLAR GENERAL CORP reported revenue of $42.00B and earnings per share (EPS) of $6.87. Net income for the quarter was $1.28B. Gross margin was 30.3%. Operating income came in at $1.92B.
In FY 2026, DOLLAR GENERAL CORP reported revenue of $42.72B and earnings per share (EPS) of $6.87. Net income for the quarter was $1.51B. Gross margin was 30.7%. Revenue grew 5.2% year-over-year compared to FY 2025. Operating income came in at $2.20B.
In Q3 2026, DOLLAR GENERAL CORP reported revenue of $10.65B and earnings per share (EPS) of $1.28. Net income for the quarter was $283M. Gross margin was 29.9%. Revenue grew 4.6% year-over-year compared to Q3 2025. Operating income came in at $426M.
In Q2 2026, DOLLAR GENERAL CORP reported revenue of $10.73B and earnings per share (EPS) of $1.87. Net income for the quarter was $411M. Gross margin was 31.3%. Revenue grew 5.1% year-over-year compared to Q2 2025. Operating income came in at $595M.
Over the past 8 quarters, DOLLAR GENERAL CORP has demonstrated a growth trajectory, with revenue expanding from $10.21B to $42.00B. Investors analyzing DG stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
DG Dividend Yield and Income Analysis
DOLLAR GENERAL CORP (DG) currently pays a dividend yield of 2.4%. At this yield, a $10,000 investment in DG stock would generate approximately $$239.00 in annual dividend income.
DG Momentum and Technical Analysis Profile
DOLLAR GENERAL CORP (DG) has a momentum factor score of 58/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 28/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
DG vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison
Comparing DG against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full DG vs S&P 500 (SPY) comparison to assess how DOLLAR GENERAL CORP stacks up against the broader market across all factor dimensions.
DG Next Earnings Date
No upcoming earnings date has been announced for DOLLAR GENERAL CORP (DG) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy DG? — Investment Thesis Summary
DOLLAR GENERAL CORP presents a balanced picture with arguments on both sides. The value score of 68/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 74/100) reduces downside risk.
In summary, DOLLAR GENERAL CORP (DG) earns a Hold rating with a composite score of 53.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on DG stock.
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Institutional Research Dossier
DOLLAR GENERAL CORP (DG) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Dollar General (DG) receives a Hold rating, reflecting a balanced view of its operational strengths and concerning valuation metrics. While the company demonstrates consistent revenue growth and profitability within the discount retail sector, its significantly elevated P/E ratio compared to its peers raises concerns about overvaluation. The core takeaway is that while Dollar General's business model is resilient and its strategic expansion continues to drive growth, the current market price may not adequately compensate investors for the inherent risks and slower growth prospects relative to its valuation.
The company's focus on consumable goods and strategic store placement in underserved communities provides a degree of defensibility, but the competitive landscape and potential shifts in consumer spending habits warrant caution. The Hold rating acknowledges the company's solid performance and strategic initiatives, but also underscores the need for a more attractive entry point given the current valuation and the potential for margin compression in a competitive retail environment.
Business Strategy & Overview
Dollar General operates a network of small-box discount retail stores, primarily targeting low-to-middle income consumers in rural and suburban areas. The company's core strategy revolves around offering a curated assortment of frequently purchased consumable items, such as food, household products, and personal care items, at competitive prices. This focus on essential goods provides a degree of resilience, particularly during economic downturns when consumers trade down to value-oriented retailers.
A key component of Dollar General's growth strategy is aggressive store expansion. The company consistently opens hundreds of new stores each year, focusing on locations with limited competition from other major retailers. This expansion strategy allows Dollar General to penetrate underserved markets and capture market share. The company also invests in supply chain improvements and technology to enhance efficiency and reduce costs.
Dollar General has also been expanding its product offerings to include more fresh and frozen foods, as well as health and beauty products. This diversification strategy aims to attract a broader customer base and increase same-store sales. The company has also been experimenting with different store formats, such as DGX, which caters to urban consumers with a smaller footprint and a different product mix.
The company's strategic positioning within the discount retail sector allows it to capitalize on several trends, including the increasing demand for value-priced goods and the growing population in rural areas. However, Dollar General also faces challenges, such as intense competition from other discount retailers, including Dollar Tree and Walmart, as well as the rising costs of labor and transportation.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
4.3%
Sector: 3.3%
+31% VS SCTR
Economic Moat Analysis
Dollar General's economic moat can be classified as Narrow, primarily derived from its cost advantages and efficient scale in specific geographic markets. The company's focus on smaller stores in rural areas allows it to operate with lower overhead costs compared to larger retailers. This cost advantage enables Dollar General to offer competitive prices and maintain profitability, even in price-sensitive markets.
The efficient scale aspect of Dollar General's moat stems from its ability to saturate specific geographic markets with its stores. By opening multiple stores in close proximity to each other, the company can achieve economies of scale in distribution and marketing. This localized density also creates a convenience factor for consumers, making Dollar General a preferred shopping destination for everyday essentials.
However, Dollar General's moat is not particularly wide. The company's product offerings are largely commoditized, and there is limited brand loyalty among its customer base. Consumers are primarily driven by price and convenience, making them susceptible to switching to competing retailers if they offer better deals or a more convenient location.
Furthermore, the competitive landscape in the discount retail sector is intense, with numerous players vying for market share. Dollar General faces competition from other dollar stores, as well as from larger retailers such as Walmart and Target, which have been expanding their presence in rural areas. This intense competition limits Dollar General's pricing power and makes it difficult to sustain high levels of profitability over the long term.
While Dollar General's cost advantages and efficient scale provide a degree of competitive protection, its narrow moat is vulnerable to erosion from increased competition and changing consumer preferences. The company needs to continue to innovate and differentiate itself from its rivals to maintain its market position and defend its profitability.
Financial Health & Profitability
Dollar General's financial health presents a mixed picture. The company has demonstrated consistent revenue growth, with revenue increasing from $38.69 billion in FY2024 to $42.72 billion in FY2026. This growth is primarily driven by new store openings and same-store sales increases. However, net income has been more volatile, declining from $1.66 billion in FY2024 to $1.51 billion in FY2026, indicating potential margin pressure.
The company's gross margin has remained relatively stable, hovering around 30%, while its operating margin has fluctuated between 4.2% and 7.9%. The recent trend suggests a slight decline in operating margin, which could be attributed to increased operating expenses or pricing pressures. Compared to the sector average, Dollar General's gross margin is lower (30.3% vs. 36.9%), but its operating margin is slightly higher (4.6% vs. 3.8%), suggesting efficient cost management in some areas.
Dollar General's ROE of 15.7% is significantly higher than the sector average of 5.8%, indicating strong profitability relative to equity. However, the company's debt-to-equity ratio of 287.00 is also significantly higher than the sector average of 91.00, suggesting a higher level of financial leverage. The current ratio of 1.13 indicates adequate liquidity to meet short-term obligations.
The absence of free cash flow data makes it difficult to assess the company's cash flow generation capabilities. However, the company's consistent profitability and revenue growth suggest that it is likely generating positive cash flow from operations. The company's high debt levels warrant close monitoring, as they could limit its financial flexibility and increase its vulnerability to economic downturns.
Analyzing the quarterly financial history reveals some concerning trends. While revenue has consistently increased, net income and EPS have been more volatile, particularly in Q3 FY2025 and Q3 FY2026. This volatility could be due to seasonal factors, increased competition, or rising operating expenses. The company needs to address these challenges to maintain its profitability and financial stability.
Valuation Assessment
Dollar General's valuation appears stretched based on several key metrics. The company's P/E ratio of 97.3x is significantly higher than the sector average of 28.0x, suggesting that the stock is overvalued relative to its earnings. This high P/E ratio could be due to investor expectations of future growth, but it also reflects the potential for downside risk if the company fails to meet those expectations.
The company's EV/EBITDA ratio of 16.1x is also higher than the sector average of 5.3x, further indicating that the stock is expensive relative to its earnings before interest, taxes, depreciation, and amortization. This high EV/EBITDA ratio could be justified if the company were growing at a significantly faster rate than its peers, but its revenue growth of 4.3% is only slightly higher than the sector average of 3.2%.
The absence of free cash flow data makes it difficult to assess the company's valuation based on FCF yield. However, given the company's high P/E and EV/EBITDA ratios, it is likely that its FCF yield is relatively low, suggesting that the stock is not particularly attractive from a cash flow perspective.
Compared to its historical valuation, Dollar General's current valuation is also high. The company's P/E ratio has historically traded in a range of 15x to 25x, suggesting that the current valuation is significantly above its historical average. This high valuation could be due to the company's strong performance during the COVID-19 pandemic, but it also reflects the potential for mean reversion if the company's growth slows down.
Overall, Dollar General's valuation appears expensive based on several key metrics. The stock is trading at a significant premium to its peers and its historical valuation, suggesting that it is overvalued. Investors should exercise caution when considering an investment in Dollar General at its current price.
Risk & Uncertainty
Dollar General faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is increased competition from other discount retailers, including Dollar Tree, Walmart, and Target. These competitors are expanding their presence in rural areas and offering similar products at competitive prices, which could erode Dollar General's market share and profitability.
Another risk is changing consumer preferences. Dollar General's target customer base is primarily low-to-middle income consumers, who are particularly sensitive to economic downturns. A decline in consumer spending could negatively impact Dollar General's sales and profitability. Furthermore, changing consumer preferences for online shopping could also pose a challenge to Dollar General, as the company has a limited online presence.
Labor costs and availability also present a risk. The retail industry is facing increasing pressure to raise wages and benefits for its employees. Rising labor costs could negatively impact Dollar General's profitability, particularly in a competitive environment where it is difficult to pass on price increases to consumers. Additionally, a shortage of qualified workers could make it difficult for Dollar General to staff its stores and maintain its customer service levels.
Supply chain disruptions and inflationary pressures could also pose a risk to Dollar General. Disruptions in the supply chain could lead to shortages of key products, while inflationary pressures could increase the cost of goods sold. These factors could negatively impact Dollar General's gross margin and profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWDollar General's aggressive store expansion strategy in underserved markets will continue to drive revenue growth and market share gains.
BULL VIEWThe company's focus on consumable goods provides a degree of resilience during economic downturns, making it a defensive investment.
BULL VIEWDollar General's efficient supply chain and cost management practices will allow it to maintain profitability despite rising operating expenses.
The Bear Case
BEAR VIEWDollar General's high valuation, particularly its P/E ratio, is unsustainable and exposes investors to significant downside risk.
BEAR VIEWIncreased competition from other discount retailers and online retailers will erode Dollar General's market share and profitability.
BEAR VIEWRising labor costs and supply chain disruptions will negatively impact Dollar General's gross margin and operating income.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score DG and 4,400+ other equities.
DOLLAR GENERAL CORP exhibits a 91% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
4.1%
Sector: 2.5%
Gross Margin
Pricing power and cost efficiency
30.3%
Sector: 36.9%
Operating Margin
Core business profitability
4.6%
Sector: 3.8%
Net Margin
Bottom-line profitability
3.0%
Sector: 2.1%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $239 annually in dividends at the current trailing rate.
