📊 DG Key Takeaways
Investment Thesis
Dollar General demonstrates solid operational fundamentals with steady revenue growth of 5.2% and strong free cash flow generation of $2.4B, supported by healthy interest coverage of 6.7x and manageable leverage. The company's 17.8% ROE and 3.5% net margin reflect efficient capital deployment typical of mature retailers, though modest operating leverage and liquidity concerns present structural challenges.
DG Strengths
- Strong free cash flow generation ($2.4B) with 5.6% FCF margin supports capital returns and debt reduction
- Solid profitability with 30.7% gross margin and 17.8% ROE indicating efficient asset utilization
- Consistent revenue growth of 5.2% YoY and manageable debt-to-equity ratio of 0.55x
- Adequate interest coverage ratio of 6.7x demonstrates debt service capability
DG Risks
- Weak liquidity position with quick ratio of 0.22x and current ratio of only 1.13x raises short-term solvency concerns
- Low operating margins of 5.2% indicate limited pricing power and high cost structure vulnerability in inflationary environments
- Net income flat YoY (+0.0%) despite revenue growth suggests margin compression and operational challenges
- High leverage with $4.6B long-term debt and total liabilities of $22.5B relative to $8.5B equity creates financial risk
Key Metrics to Watch
- Operating margin trends - any further compression signals structural cost issues
- Free cash flow sustainability and capital allocation efficiency
- Gross margin maintenance amid competitive and inflationary pressures
- Debt reduction progress and liquidity improvement initiatives
DG Financial Metrics
💡 AI Analyst Insight
DOLLAR GENERAL CORP presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DG Profitability Ratios
DG vs Consumer Sector
How DOLLAR GENERAL CORP compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DG Balance Sheet & Liquidity
DG 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 Growth Metrics (YoY)
DG Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $9.4B | $468.8M | $2.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DG Capital Allocation
DG SEC Filings
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 an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DG's key strengths?
Claude: Strong free cash flow generation ($2.4B) with 5.6% FCF margin supports capital returns and debt reduction. Solid profitability with 30.7% gross margin and 17.8% ROE indicating efficient asset utilization.
What are the risks of investing in DG?
Claude: Weak liquidity position with quick ratio of 0.22x and current ratio of only 1.13x raises short-term solvency concerns. Low operating margins of 5.2% indicate limited pricing power and high cost structure vulnerability in inflationary environments.
What is DG's revenue and growth?
DOLLAR GENERAL CORP reported revenue of $42.7B.
Does DG pay dividends?
DOLLAR GENERAL CORP pays dividends, with $519.5M 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 $6.85.
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 rating reflects both perspectives for balanced insights.