KabuDo

NYSE: DG · Consumer Staples Merchandise Retail

Dollar General

Dollar General is the largest U.S. discount retailer by number of stores: 20,959 stores in 48 states and Mexico as of February 2026, concentrated in the South, Southwest, Midwest and East. Consumables (food, paper and cleaning products, health and beauty, pet supplies) make up 82% of sales. Fiscal 2025 (year ended January 2026) net sales were $42.7 billion, and net income rebounded to $1.51 billion from $1.13 billion. In Q2 2026, same-store sales rose 3.5% and operating profit 29%. CEO Todd Vasos will hand over to Jerry “JJ” Fleeman on January 1, 2027.

Last updated

Analysis last edited: October 15, 2026 · Financial data fetched: October 17, 2026 10:07 (SEC EDGAR) · Source 10-K filed: March 20, 2026

Built on10-K FY2026 · filed 2026-03-2010-Q (quarter ended 2026-07-31) · filed 2026-08-27

Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

01

At a glanceFrom SEC data

Eight headline measures, each placed among the companies covered on this site.

Revenue growth
4.8%

Higher than 23% of 372 non-financial companies

Average yearly growth over the years shown

Operating margin
5.2%

Higher than 14% of 311 non-financial companies

Latest fiscal year (FY2026)

ROIC minus WACC
+6.5 pts

Higher than 63% of 311 non-financial companies

Return on capital above (or below) its estimated cost

Net debt ÷ EBITDA
1.1x

Higher than 37% of 304 non-financial companies

Below 0 means more cash than debt

Cash conversion
2.40x

Higher than 83% of 349 non-financial companies

Operating cash flow ÷ net income

Dividend raises
0 of 5

Years the dividend per share rose, of the last 5

P/E today
17.7x

Latest close 2026-11-04; trailing 12 months to 2026-07-31

Beta
0.37

Above 1 = moves more than the market

Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.

02

Valuation todayFrom SEC data

Price-based measures at the latest close, next to the same measures at the last fiscal year-end.

Share price$137.23close on 2026-11-04

Market cap$30.22B

P/E today
17.7x

At FY2026 year-end: 20.9x

Earnings: trailing 12 months to 2026-07-31

P/B today
3.6x

At FY2026 year-end: 3.7x

Book value at FY2026 year-end

EV/EBITDA today
10.4x

At FY2026 year-end: 10.8x

EBITDA for FY2026

FCF yield today
7.9%

At FY2026 year-end: 7.6%

Free cash flow for FY2026

Dividend yield today
1.7%

Dividends per share for FY2026

“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.

03

What changed since last earningsFrom SEC data

The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.

Quarter ended Jul 31, 2026.

  • Revenue↑ +5.2%$10.73B → $11.29B (vs. a year earlier)
  • Operating margin↑ +1.3 pts5.6% → 6.8% (vs. a year earlier)
  • Net income↑ +33.8%$411M → $550M (vs. a year earlier)
  • Diluted EPS↑ +33.3%$1.86 → $2.48 (vs. a year earlier)
  • Cash↑ +17.5%$1.35B → $1.59B (vs. previous quarter-end)

Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.

From the earnings release of Aug 27, 2026.

Key changes

  • Q2 sales up 5.2% to $11.3B. Source sentence
    sales increased 5.2% to $11.3 billion in the second quarter of fiscal 2026 compared to $10.7 billion in the second quarter of fiscal
  • Same-store sales up 3.5%. Source sentence
    Same-store sales increased 3.5% compared to the second quarter of fiscal 2025, reflecting increases
  • Diluted EPS up 33.3% to $2.48. Source sentence
    Diluted EPS increased 33.3% to $2.48 for the second quarter of fiscal 2026 compared to diluted

Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗

04

Company profileFrom SEC dataShow

Legal name
DOLLAR GENERAL CORP
Headquarters
GOODLETTSVILLE, TN
Incorporated in
Tennessee
Fiscal year end
01/29
Exchange & ticker
NYSE: DG
Industry
Consumer Staples Merchandise Retail
CIK
29534

Workforce (as of FY2026 year-end)

  • Employees

    194,000

Source: Form 10-K (FY2026) cover page and business description

05

Earnings calendarFrom SEC dataShow

When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.

Next report

Q3 FY2027

Quarter end: October 2026. In past years, Q3 results were released 34 days after quarter end (Dec 4, 2025; Dec 5, 2024; Dec 7, 2023). No date has been announced in the sources this site uses.

Reporting pattern

  • Fiscal year ends around January 29.
  • Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
  • Earnings releases came 27–41 days after quarter end over the last 12 quarters.
QuarterQuarter endedEarnings release (8-K)Report filed (10-Q / 10-K)
Q2 FY2027Jul 31, 2026Aug 27, 2026 (+27 days)Aug 27, 2026 10-Q (+27 days)
Q1 FY2027May 1, 2026Jun 2, 2026 (+32 days)Jun 2, 2026 10-Q (+32 days)
Q4 FY2026Jan 30, 2026Mar 12, 2026 (+41 days)Mar 20, 2026 10-K (+49 days)
Q3 FY2026Oct 31, 2025Dec 4, 2025 (+34 days)Dec 4, 2025 10-Q (+34 days)
Q2 FY2026Aug 1, 2025Aug 28, 2025 (+27 days)Aug 28, 2025 10-Q (+27 days)
Q1 FY2026May 2, 2025Jun 3, 2025 (+32 days)Jun 3, 2025 10-Q (+32 days)
Q4 FY2025Jan 31, 2025Mar 13, 2025 (+41 days)Mar 21, 2025 10-K (+49 days)
Q3 FY2025Nov 1, 2024Dec 5, 2024 (+34 days)Dec 5, 2024 10-Q (+34 days)
Q2 FY2025Aug 2, 2024Aug 29, 2024 (+27 days)Aug 29, 2024 10-Q (+27 days)
Q1 FY2025May 3, 2024May 30, 2024 (+27 days)May 30, 2024 10-Q (+27 days)
Q4 FY2024Feb 2, 2024Mar 14, 2024 (+41 days)Mar 25, 2024 10-K (+52 days)
Q3 FY2024Nov 3, 2023Dec 7, 2023 (+34 days)Dec 7, 2023 10-Q (+34 days)

Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.

06

Flagship products & servicesSite analysis

  • Consumables

    Food, paper and cleaning, health and beauty, pet

    82% of sales.

  • Non-consumables

    Seasonal, home, apparel

    Higher-margin categories.

  • Formats

    Dollar General, pOpshelf, Mexico stores

    17 stores in Mexico.

From the FY2025 Form 10-K.

U.S., worldwide and country/regional share of flagship products/services

Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.

  • Discount retail stores

    U.S. discount retailers, by number of stores

    U.S. share

    Largest

    Company-disclosed

    20,959 stores in 48 states and Mexico as of February 27, 2026.

    Worldwide share

    —

    Not disclosed

07

Recent strategic focusSite analysis

2026 developments.

  1. CEO succession

    The board hired Jerry W. “JJ” Fleeman Jr. to succeed Todd Vasos as CEO effective January 1, 2027.

    Source: 8-K filed 2026-03-24

  2. Q2 2026

    Net sales +5.2% to $11.3B, same-store sales +3.5%, EPS +33% to $2.48; full-year guidance raised.

    Source: Q2 2026 press release

  3. Board and management

    David Rowland became Chairman in February 2026; Emily Taylor became COO in November 2025.

    Source: 8-Ks filed 2026-02-03 and 2025-11-13

Capex ÷ D&A (FY2026)

1.19x

Roughly matches depreciation — mostly maintenance/replacement

formulacapital expenditures ÷ depreciation & amortization

e.g.$1,241M ÷ $1,046M = 1.19x

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

Where the money goes, over time

Unit: $M. Capex went from $1.03B in FY2021 to $1.24B in FY2026

  • Capex

formulacapital expenditures ÷ depreciation & amortization

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-20

08

Key figures at a glanceFrom SEC data

FY2021–FY2026, 6 years.

Revenue (FY2026)

$42.72B

As reported in the 10-K

Revenue CAGR (5 years)

+4.8%

formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1

e.g.($42,724M ÷ $33,747M) ^ (1÷5) − 1 = 4.8%

termsCAGR · ^ (exponent) · Revenue (net sales)

Operating margin (FY2026)

5.2%▼caution

-5.4pt vs. 5 years ago

formulaoperating income ÷ revenue × 100

e.g.$2,204M ÷ $42,724M × 100 = 5.2%

termsOperating income · Revenue (net sales)

ROE (FY2026)

19.0%▲favorable

6-year average: 30.0%

As reported in the 10-K

P/B (FY2026 end)

3.71x

formulafiscal year-end closing price ÷ book value per share

e.g.$143.43 ÷ $38.65 = 3.71x

termsP/B · BVPS

Period-end (fiscal year-end) value, not today's P/B

EV/EBITDA (FY2026 end)

10.8x

formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)

e.g.($31,586M + $4,566M − $1,139M) ÷ ($2,204M + $1,046M) = 10.8x

termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)

Period-end (fiscal year-end) value, not today's multiple

  • ―

    Revenue grew +4.8% a year over 5 years (modest growth)

    From $33.75B in FY2021 to $42.72B in FY2026. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.

  • ▼

    Operating margin declined: 10.5% → 5.2%

    How much operating profit is left per $100 of revenue. It moved -5.4 points over 5 years — pricing power, cost control, and product mix all show up here.

  • ▼

    Equity ratio is 27.5% (relatively heavy reliance on debt)

    The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).

  • ▲

    Free cash flow was positive in 6 of 6 years

    Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.

  • ▲

    ROE averaged 30.0% over 6 years (latest: 19.0%)

    How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.

09

Business modelSite analysis

A limited assortment of national and private brands at low prices in small stores, mostly in rural and suburban communities, supplied by Dollar General's own distribution centers and fleet.

How money and goods flow at Dollar General
  1. 01 what it draws on

    Inputs & resources

    • Suppliers (the two largest are about 11% and 8% of purchases)
    • Distribution centers, private fleet
  2. 02 what it does

    Activities

    • Store operations, self-distribution of frozen and refrigerated goods
  3. 03 who it serves

    Customers

    • Value-seeking households
  4. 04 how money comes in

    How it earns

    • Consumables 82%
    • Seasonal 10%
    • Home 5%
    • Apparel 3%

How the business makes money

  • Seasonal and home carry the highest gross margins; consumables the lowest.
  • Initiatives include DG Media Network, digital delivery and pOpshelf.

Government & regulation around the business

Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.

Dollar General faces tariffs, card fees and possible carbon costs.

  • Trade & export rules

    Tariffs and trade rules

    The U.S. imposed additional tariffs on many trading partners in 2025.

    Constrains the businessTouches: Inputs & resources

    Source: Form 10-K (FY2026)

  • Regulated prices & reimbursement

    Card interchange fees

    Pays interchange and other fees on card payments, which it has little control over.

    Constrains the businessTouches: Inputs & resources

    Source: Form 10-K (FY2026)

  • Environmental rules

    Carbon pricing

    Carbon pricing could raise merchandise costs from suppliers.

    Constrains the businessTouches: Inputs & resources

    Source: Form 10-K (FY2026)

Revenue by segment (FY2025 (Jan 2026))

Unit: $M — bar length = revenue, (%) = share of total company revenue

  • Consumables

    35,034 (82%)
  • Seasonal

    4,315 (10%)
  • Home products

    2,222 (5%)
  • Apparel

    1,154 (3%)

Source: Form 10-K (FY2025) — net sales by category (percentages) Amounts are derived from the category percentages (82.0/10.1/5.2/2.7%) applied to net sales of $42.7B; Dollar General reports one segment.

10

Contract structureSite analysisShow

Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.

11

Customers & suppliersSite analysis

Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.

Customers

Value-seeking households in rural, suburban and urban communities.

Named by the company

No customer concentration.

Suppliers

National brand and private brand suppliers; the two largest accounted for about 11% and 8% of 2025 purchases; about 4% directly imported.

Named by the company

The largest suppliers are not named.

12

Competitors & peersSite analysis

Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.

The 10-K names primary direct competitors.

Competitors named in the 10-K

Peer group the company chose

2025 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.

Retailers and distributors similar in operations, revenue and markets.

Source: Proxy statement (DEF 14A, filed 2026-04-07)

Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.

13

Six years of financialsFrom SEC data

Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.

Revenue over time

Unit: $M

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-20

Profit over time (operating → net)

Unit: $M

  • Operating income
  • Pretax income
  • Net income

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-20

Margins over time

Unit: %

  • Operating margin
  • Net margin

formulaoperating income ÷ revenue × 100

termsOperating income · Revenue (net sales)

formulanet income attributable to the company ÷ revenue × 100

termsNet income (attributable to the company)

Cash flow over time

Unit: $M (below zero = cash went out)

  • Operating CF
  • Investing CF
  • Free CF

formulacash flow from operations − capital expenditures

termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-20

Financial stability & capital efficiency

Unit: %

  • Equity ratio
  • ROE

formulatotal equity ÷ total assets × 100 (as reported in the 10-K)

termsStockholders’ equity · Total assets

formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)

termsNet income (attributable to the company) · Stockholders’ equity

Earnings per share (EPS) and dividend per share

Unit: $

  • EPS
  • Dividend per share

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-20

Line itemFY202110-K on EDGAR ↗FY202210-K on EDGAR ↗FY202310-K on EDGAR ↗FY202410-K on EDGAR ↗FY202510-K on EDGAR ↗FY202610-K on EDGAR ↗
Income statement ($M)
Revenue33,74734,22037,84538,69240,61242,724
Operating income3,5553,2213,3282,4461,7142,204
Pretax income3,4043,0633,1172,1201,4401,965
Net income (attributable)2,6552,3992,4161,6611,1251,512
Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100—1.4%10.6%2.2%5.0%5.2%
Operating margincalcoperating income ÷ revenue × 10010.5%9.4%8.8%6.3%4.2%5.2%
Net margincalcnet income attributable to the company ÷ revenue × 1007.9%7.0%6.4%4.3%2.8%3.5%
Balance sheet ($M)
Total assets25,86326,32729,08330,79631,13330,964
Total equity6,6616,2625,5426,7497,4148,512
Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable4,1314,1727,0096,2325,7194,566
Equity ratio25.8%23.8%19.1%21.9%23.8%27.5%
ROE39.9%37.1%40.9%27.0%15.9%19.0%
Cash flow ($M)
Operating CF3,8762,8661,9852,3922,9963,635
Investing CF-1,025-1,066-1,555-1,694-1,306-1,237
Financing CF-1,715-2,832-392-542-1,294-2,191
Free cash flowcalccash flow from operations − capital expenditures2,8481,7954246921,6862,393
Cash and equivalents1,3773453825379331,139
Per share & other
EPS ($)10.6210.1710.687.555.116.85
BVPS ($)27.6627.2225.2930.7233.7138.65
Dividend per share ($)1.441.682.202.362.362.36
Payout ratiocalcdividend per share ÷ diluted EPS × 10013.6%16.5%20.6%31.3%46.2%34.5%
P/E (x)18.320.121.418.013.920.9
EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)12.013.214.010.87.610.8
P/B (x)calcfiscal year-end closing price ÷ book value per share7.037.519.024.432.113.71

P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.

Last 8 quarters

Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.

Quarter endedRevenueOperating incomeNet incomeDiluted EPS
2026-07-31$11.29B+5.2%$769M+29.2%$550M+33.8%$2.48
2026-05-01$10.79B+3.4%$639M+10.8%$444M+13.3%$2.00
2026-01-30 †$10.91B+5.9%$606M+106.1%$426M+122.9%—
2025-10-31$10.65B+4.6%$426M+31.5%$283M+43.8%$1.28
2025-08-01$10.73B$595M$411M$1.86
2025-05-02$10.44B$576M$392M$1.78
2025-01-31 †$10.3B$294M$191M—
2024-11-01$10.18B$324M$197M$0.89

† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.

14

Is ROIC above WACC?From SEC data

ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.

ROIC (FY2026)

13.1%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

e.g.$2,204M × (1 − 22%) ÷ $13,105M × 100 = 13.1%

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

WACC (this site’s estimate)

6.60%

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

e.g.Equity weight: $31.59B ÷ ($31.59B + $4.57B) = 87.4%

e.g.Debt weight: $4.57B ÷ ($31.59B + $4.57B) = 12.6%

e.g.WACC: 7.0% × 87.4% + 5.1% × (1 − 22%) × 12.6% = 6.60%

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

ROIC − WACC

+6.5pt▲favorable

Earning more than the cost of capital (ROIC > WACC in 6 of 6 years)

formulaROIC − WACC (positive means the business earns more than its cost of capital)

termsROIC · WACC

How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 5.5%–8.1% and ROIC − WACC runs +5.1 to +7.6 points. The sign holds across this range. This describes the latest year and does not predict future value creation.

WACC 6.60% is this site’s estimate under the assumptions below (not a figure the company has published)

Risk-free rate
4.95% (10-year Treasury, 2026-11-03)
β
0.37 (price-derived adjusted beta, but correlation with the market is low (R² 0.00), so reliability is limited)
Equity risk premium
5.5%
Cost of equity
6.99%
Cost of debt
5.05%
Tax rate
22% (effective rate, FY2024–FY2026)
Capital structure (equity : debt)
87% : 13%
→ Change assumptions and recalculate

ROIC over time, vs. WACC

Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red

  • ROIC (above WACC)
  • ROIC (below WACC)
  • WACC 6.60%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

Try different WACC assumptions

β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).

Initial β: 0.37 (price-derived adjusted beta. Raw β 0.06, R² 0.00, 130 weeks)

formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)

e.g.0.67 × 0.062 + 0.33 = 0.372

termsβ (beta)

Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.

Cost of equity6.99%

formularisk-free rate + β × equity risk premium

e.g.5.0% + 0.37 × 5.5% = 7.0%

termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)

Market value of equity$31.59B

formulafiscal year-end closing price × shares outstanding (= market cap)

termsMarket capitalization · Market value of equity

Interest-bearing debt$4.57B
Cost of debt5.05%

formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)

termsInterest-bearing debt · Risk-free rate

Capital structure (equity weight : debt weight)87% : 13%

15

What the price implies (DCF)From SEC data

A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.

Growth the price implies (price on 2026-11-04)

-0.5%

Perpetual FCF growth: g = r − FCF ÷ EV = 6.6% − 7.1%

Past FCF growth (FY2021–FY2026)

-3.4%

Compound annual rate, 5 years

Past revenue growth (FY2021–FY2026)

+4.8%

Compound annual rate, 5 years

Inputs (FY2026): free cash flow $2.39B (operating CF − capex); enterprise value $33.65B = market cap $30.22B (latest close, 2026-11-04) + debt $4.57B − cash and short-term investments $1.14B; r = WACC of 6.6% using this page’s default assumptions (β 0.37, risk-free 5.0%, market premium 5.5%).

Three WACC scenarios

The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.

Try your own assumptions

V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.

Theoretical enterprise value

$33.71B

FCF $2.39B ÷ (6.6% − -0.5%)

Theoretical ÷ actual enterprise value

1.00x

Above 1x: these assumptions value the business above the market did

How sensitive the answer is

Theoretical ÷ actual enterprise value for each combination of r and g.

g \ r4.6%5.6%6.6%7.6%8.6%
0%1.55x1.27x1.08x0.94x0.83x
2%2.74x1.98x1.55x1.27x1.08x
4%11.85x4.45x2.74x1.98x1.55x
6%——11.85x4.45x2.74x
8%————11.85x

A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.

16

Earnings qualityFrom SEC dataShow

The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.

  • ✓

    Operating CF ÷ net income: averages 1.66x

    Profit is backed by cash coming in.

  • ✓

    Accrual ratio (latest): -6.8%

    A small share of profit rests on accounting estimates.

  • ✓

    Core-earnings share (operating income ÷ pretax income): 112%

    Most profit comes from core operations.

Operating CF vs. net income

Unit: $M — operating CF above net income means profit is backed by cash

  • Operating CF
  • Net income

formulacash flow from operations ÷ net income attributable to the company

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formula(net income − operating CF) ÷ average total assets × 100

termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-20

Profit bridge (FY2026)

Unit: $M — what moved profit from operating income to net income

  • Profit (each stage)
  • Pushed profit up
  • Pushed profit down

formulaoperating income ÷ income before income taxes × 100

termsOperating income · Income before income taxes (pretax income)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-20

Receivables & inventory days

Unit: days — days grow when receivables or inventory build up faster than sales

  • Days inventory outstanding

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

termsInventory · Cost of revenue (COGS)

Worked examples (latest period)

formulacash flow from operations ÷ net income attributable to the company

e.g.$3,635M ÷ $1,512M = 2.40x

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formulaoperating income ÷ income before income taxes × 100

e.g.$2,204M ÷ $1,965M × 100 = 112%

termsOperating income · Income before income taxes (pretax income)

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

e.g.($6,711M + $6,332M) ÷ 2 ÷ $29,625M × 365 = 80 days

termsInventory · Cost of revenue (COGS)

17

Who holds the sharesFrom SEC dataShow

How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.

Institutions, insiders and everyone else, 13F holdings as of 2026-06-30

“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.

Held by 13F filers
100%+

Reported total 100.1%

Directors & officers (shares)
<1%
Everyone else (est.)
≈0%

individuals and other non-13F holders

Directors & officers (voting power)
<1%

no separate voting figure; shown as shares

Institutional-ownership rank
60 of 416

1 = most institutional; 14% of covered companies have more

Beta (adjusted)
0.37

above 1 = swings more than the market

  • 220.8M shares reported by 1,131 13F filers ÷ 220.6M shares outstanding on 2026-05-29. Option positions are excluded.
  • The 13F total exceeds shares outstanding because some shares are reported twice — for example shares lent to short sellers and then bought by another manager, or holdings that overlapping managers both report.
  • Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
  • A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.

Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-07 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-05-29)

18

Strengths & weaknessesSite analysis

Strengths

  1. 1. Largest store network

    20,959 stores, the most of any U.S. discount retailer.

    Evidence: Form 10-K (FY2025) Item 1

  2. 2. Profit recovery

    Operating profit rose 29% in FY2025 and 29% again in Q2 2026.

    Evidence: Form 10-K (FY2025); Q2 2026 press release

  3. 3. Traffic growth

    Q2 2026 was the fifth consecutive quarter of customer traffic growth.

    Evidence: Q2 2026 press release

Weaknesses

  1. 1. Low-margin mix

    Consumables, the lowest-margin category, are 82% of sales.

    Evidence: Form 10-K (FY2025)

  2. 2. Earnings still below peak

    Net income of $1.51B compares with $2.42B in FY2022.

    Evidence: SEC EDGAR XBRL

19

What draws investors to itSite analysis

Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.

P/E (FY2026)

20.9x

Price at fiscal year-end ÷ diluted EPS

Dividend yield (FY2026)

1.65%

Dividends per share ÷ fiscal year-end price

Payout ratio (FY2026)

34%

Dividends per share ÷ diluted EPS

FCF yield (FY2026)

7.6%

(Operating CF − capex) ÷ market cap

  1. 1. Turnaround

    Margins and earnings are recovering.

    What has to hold
    Traffic gains continue.
    The other side
    Intense competition.

    Evidence: Q2 2026 press release

  2. 2. Dividend

    Quarterly dividend of $0.59.

    What has to hold
    Earnings recover further.
    The other side
    Dividend was flat at $2.36 for three years.

    Evidence: Q2 2026 press release; SEC EDGAR XBRL

Fiscal years end on the Friday closest to January 31; the site labels the year ended January 30, 2026 as FY2026. Interest expense is net.

20

ResilienceSite analysisShow

How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.

1. Financial buffer (FY2026)

Cash & short-term investments ÷ debt due within a year

79.1x

$1.14B vs. $14M

Interest coverage (operating income ÷ interest expense)

9.6x

$2.2B vs. $231M

Free cash flow ÷ dividends paid

4.6x

$2.39B vs. $520M (FCF = operating CF − capex)

2. Worst year in the record, and the recovery

FigureWorst year-over-year changeBack to the prior level?
RevenueNo decline in the record—
Operating income-29.9% in FY2025 ($2.45B → $1.71B)Not yet, as of FY2026

Covers only the 6 fiscal years on record (FY2021–FY2026), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.

3. Business resilience (from the 10-K)

  • Cash flow

    Operating cash flow was $3.6B in FY2025.

    Source: SEC EDGAR XBRL

  • Debt reduction

    Interest-bearing debt fell from $7.0B (FY2023) to $4.6B (FY2025).

    Source: SEC EDGAR XBRL

22

Risks (including geopolitical)Site analysis

Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.

Risk map

Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).

Impact
High
Med
3
24
1
Low
LowMedHigh

Likelihood →

"Company disclosure" vs. "this site’s assessment"

The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.

Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.

  1. 1Competition & technology shift

    Competition

    Company disclosure (summarized from the 10-K)
    Primary direct competitors are Walmart, Family Dollar and Dollar Tree; others include mass, convenience, drug, grocery, warehouse club and online retailers.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood High
  2. 2Costs & inflation

    Tariffs, inflation and labor

    Company disclosure (summarized from the 10-K)
    Tariffs, inflation and labor costs pressure margins; Q2 2026 results included tariff refunds.
    Company’s stated mitigation
    We continue to monitor developments and to evaluate and implement mitigation strategies to address the potential sales and margin impact of current and potential future tariffs, as well as to take various actions designed to minimize price increases for our customers.
    This site’s assessment
    Impact Med / Likelihood Med
  3. 3Customer/supplier concentration

    Supplier concentration

    Company disclosure (summarized from the 10-K)
    The two largest suppliers accounted for about 11% and 8% of purchases.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Low
  4. 4Demand & macro

    Low-income consumer

    Company disclosure (summarized from the 10-K)
    Core customers are sensitive to economic pressure and government assistance changes.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med

23

What to watch going forwardSite analysis

  • CEO transition to JJ Fleeman (January 2027).
  • Same-store sales and traffic.
  • Shrink and damages reduction.
  • Tariff effects.

24

Source documentsShow

This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.

Last updated

Analysis last edited: October 15, 2026 · Financial data fetched: October 17, 2026 10:07 (SEC EDGAR) · Source 10-K filed: March 20, 2026

Built on10-K FY2026 · filed 2026-03-20

Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

This page is this site’s own analysis based on public information, and does not represent Dollar General’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.