DOLLAR GENERAL CORP (DG) Stock Analysis

Analysis from 10-Q filed 2025-12-04. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 6.9%. FCF margin 5.6%. D/E 0.5x. Source: 10-Q filed 2025-12-04.

Metric	Value	Context
ROIC	6.9%	Below expectations
FCF Margin	5.6%	Healthy cash flow
Debt/Equity	0.5x	Moderate leverage

ROIC 6.9% — Bottom 50% of sector peers. FCF margin 5.6% — Top 50%.

Explore DOLLAR GENERAL CORP: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for DG: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: DOLLAR GENERAL CORP earns 6.9% ROIC, Bottom 50% in Consumer Discretionary

ROIC TTM 6.9%, sector median 8.1%, Bottom 50%. DuPont: NOPAT margin 4.0% × asset turnover 1.4x. Gross margin 30.7%. Operating margin 5.2%. Source: 10-Q filed 2025-12-04.

Metric	DG	Rating	Context
Return on Invested Capital (ROIC)	6.9%	Warning	Below sector median of 8.1%
Return on Equity (ROE)	19.0%	Good	Efficient use of shareholder equity
Gross Margin	30.7%	Good	Competitive pricing environment
Operating Margin	5.2%	Adequate	Moderate operational efficiency

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Cash Flow: DOLLAR GENERAL CORP generates $2.4B FCF at 5.6% margin, positive NaN/8 quarters

FCF TTM $2.4B. FCF margin 5.6%, Top 50%. OCF/Net income 2.4x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-12-04.

Metric	DG	Rating	Context
Free Cash Flow Margin	5.6%	Adequate	Healthy cash generation
Free Cash Flow (TTM)	$2.4B	Good	Positive cash generation
OCF/Net Income	2.4x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: DOLLAR GENERAL CORP at 0.5x leverage

Debt/Equity 0.5x. Total debt $4.6B, cash & investments $1.1B. Source: 10-Q filed 2025-12-04.

Metric	DG	Rating	Context
Debt to Equity	0.5x	Good	Moderate leverage
Net Cash Position	$-3.4B	Warning	Net debt position

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Valuation: DOLLAR GENERAL CORP trades at 20.9x earnings

P/E 20.9x. EV/Sales 0.8x. FCF yield 7.6%. Dividend yield 1.6%. Source: 10-Q filed 2025-12-04.

Metric	DG	Rating	Context
P/E Ratio	20.9x	Adequate	Premium valuation
EV/Sales	0.8x	Excellent	Attractive revenue multiple
FCF Yield	7.6%	Good	Attractive cash return
Dividend Yield	1.6%	Adequate	Growth focus over income

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Capital Allocation: DOLLAR GENERAL CORP returns 1.6% shareholder yield

Total shareholder yield 1.6% (div 1.6%). Capital returned $519.5M TTM. Source: 10-Q filed 2025-12-04.

Metric	DG	Rating	Context
Total Shareholder Yield	1.6%	Adequate	Dividend + buyback yield combined
Total Capital Returned (TTM)	$519.5M	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	6.9%	Bottom 50%	0.9x below
Free Cash Flow Margin	5.6%	Top 50%	2.5x above
Gross Margin	30.7%	Bottom 50%	0.8x below
Operating Margin	5.2%	Top 50%	1.2x above
Return on Equity (ROE)	19.0%	Top 50%	1.8x above
P/E Ratio	20.9x	N/A	-

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Financial Scorecard

Metric	DG	Rating	Sector Context
Return on Invested Capital (ROIC)	6.9%	Warning	Bottom 50% of sector (median: 8.1%)
Free Cash Flow Margin	5.6%	Adequate	Top 50% of sector (median: 2.2%)
Gross Margin	30.7%	Good	Bottom 50% of sector (median: 39.1%)
Debt to Equity Ratio	53.6%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	20.9x	Adequate	Fair value
Free Cash Flow Yield	7.6%	Good	Solid cash yield

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Frequently Asked Questions

Q: What is DOLLAR GENERAL CORP's Return on Invested Capital (ROIC)?

DOLLAR GENERAL CORP (DG) has a trailing twelve-month Return on Invested Capital (ROIC) of 6.9%. Sector median 8.1%. Source: 10-Q filed 2025-12-04.

Q: What is DOLLAR GENERAL CORP's Free Cash Flow Margin?

DOLLAR GENERAL CORP (DG) has a free cash flow margin of 5.6%, generating $2.4 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-12-04.

Q: What is DOLLAR GENERAL CORP's P/E ratio and how does it compare to peers?

DOLLAR GENERAL CORP (DG) trades at a P/E ratio of 20.9x, which is above the sector median of N/A. EV/Sales 0.8x. FCF yield 7.6%. Source: 10-Q filed 2025-12-04.

Q: Does DOLLAR GENERAL CORP pay a dividend?

DOLLAR GENERAL CORP (DG) currently pays a dividend yield of 1.6%. Total shareholder yield (dividend + buybacks) 1.6%. Source: 10-Q filed 2025-12-04.

Q: How much debt does DOLLAR GENERAL CORP have?

DOLLAR GENERAL CORP (DG) has a debt-to-equity ratio of 0.5x with total debt of $4.6 billion. Net debt $3.4 billion. Source: 10-Q filed 2025-12-04.

Q: What is DOLLAR GENERAL CORP's revenue and earnings growth?

DOLLAR GENERAL CORP (DG) grew revenue by 5.2% year-over-year. EPS +34.1% YoY. Source: 10-Q filed 2025-12-04.

Q: How does DOLLAR GENERAL CORP compare to competitors in Consumer Discretionary?

Compared to other companies in Consumer Discretionary, DOLLAR GENERAL CORP (DG) shows: ROIC 6.9%, sector median 8.1% (Bottom 50%). FCF margin 5.6%, sector median 2.2% (Top 50%). Gross margin 30.7%, 8.4pp below sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.

Q: What warning signs should I watch for with DOLLAR GENERAL CORP?

No quantitative warning flags fired for DOLLAR GENERAL CORP (DG) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-12-04.

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Data Source: Data sourced from 10-Q filed 2025-12-04. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.