Dollar General Corporation (DG) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Dollar General Corporation

Updated on October 15, 2026 · accounts published on August 27, 2026

Earnings are rebounding

Dollar General trades at a P/E of 16.9 over the last 12 months, 25 % below its sector median and 16 % below its own ten-year median.

• Is Dollar General expensive or cheap? At 16.9× earnings, Dollar General trades 25 % below its sector median and 16 % below its own ten-year median P/E.
• How is the business doing? EPS grew 34 % over the last 12 months, but the 5.6 % operating margin is still below the 8.2 % average of 2014-2025.
• How strong is the balance sheet? Net debt is 4.5× EBITDA in fiscal 2025, far above the 2.5× the sector treats as healthy; the dividend yields 1.9 %.
• What to expect from the next earnings? On December 3, 2026 analysts expect EPS of $1.39; Dollar General has beaten estimates in 7 of the last 8 quarters.
• Is it as stable as the sector promises? Gross margin of 30.7 % in fiscal 2025 falls short of the 35 % that signals stability in consumer defensive.

Is Dollar General expensive or cheap?

Over the last 12 months Dollar General trades at a P/E of 16.9. Its ten-year median is 20.1, and the median for its sector, across 138 consumer defensive companies, is 22.5. Over the last decade the multiple ranged from 9.0 to 33.2, and the stock has been cheaper than today only 25 % of the time. The free cash flow yield is 9.9 %, roughly double the 4.8 % earnings yield, so the business generates more cash than its accounting profit shows. The discount remains even after the shares rose 32 % over the last 12 months. They are still 16 % below their 52-week high of $156.24.

How is the business doing?

Revenue rose 5.2 % over the last 12 months while EPS jumped 34.1 %, a sign that profitability is recovering. The operating margin has climbed to 5.6 % from 5.2 % in fiscal 2025, but it is still well short of the 8.2 % average for fiscal 2014-2025. Returns tell the same story. ROIC of 7.0 % over the last 12 months sits 2.1 points below the sector median of 9.1 %. It was above 10 % in 6 of the last 10 fiscal years and hit its low of 5.1 % in 2024. ROE of 19.6 % looks healthy, but leverage accounts for part of it.

How strong is the balance sheet?

Net debt reached $67.29 per share in fiscal 2025. That equals 52 % of the current share price and 4.5× EBITDA, while the healthy ceiling for consumer defensive companies is 2.5×. Over the last 12 months debt to equity is 1.68 and the current ratio is 1.21. An Altman Z of 2.7 puts the company in the grey zone, while a Piotroski score of 7 out of 9 points to solid underlying fundamentals. The dividend is well covered: the 1.9 % yield comes with a payout of 34 % of fiscal 2025 earnings, comfortably below the 75 % limit.

What to expect from the next earnings?

Dollar General next reports on December 3, 2026, and the consensus expects EPS of $1.39 for the quarter. Its track record is strong: the company beat EPS estimates in 7 of the last 8 quarters. On August 27, 2026 it reported $2.48 against $2.01 expected, a 23 % surprise. Expectations for 2027 are steady. Over the last 30 days the EPS consensus from 23 analysts moved only from $7.90 to $7.91, and revenue estimates barely changed. Of the 52 analysts covering the company, 28 recommend buying, 21 holding and 2 selling.

Is it as stable as the sector promises?

Investors buy consumer defensive companies for steady cash and a growing dividend, not rapid growth. That is why the sector focuses on gross margin, cash conversion and dividend growth. Dollar General passes several of these tests. Free cash flow was 158 % of net income in fiscal 2025, above the 90 % healthy mark. The dividend grew 10.4 % a year over 2015-2025, ahead of the 6 % threshold. The weak points are a gross margin of 30.7 % in fiscal 2025, below the 35 % benchmark, and EPS growth of 5.7 % a year over 2015-2025, just under the 6 % threshold.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.