DOLLAR GENERAL CORP (DG) Stock Analysis

Analysis from 10-Q filed 2026-08-27. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 7.6%. FCF margin 4.6%. D/E 0.5x. Source: 10-Q filed 2026-08-27.

Metric	Value	Context
ROIC	7.6%	Below expectations
FCF Margin	4.6%	Cash flow pressure
Debt/Equity	0.5x	Conservative leverage

ROIC 7.6% — Top 50% of sector peers. FCF margin 4.6% — Top 50%.

Explore DOLLAR GENERAL CORP: Earnings History | Filings

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 7.6% ROIC, Top 50% in Consumer Discretionary

ROIC TTM 7.6%, sector median 6.1%, Top 50%. DuPont: NOPAT margin 4.3% × asset turnover 1.4x. Gross margin 31.2%. Operating margin 5.6%. Source: 10-Q filed 2026-08-27.

Metric	DG	Rating	Context
Return on Invested Capital (ROIC)	7.6%	Warning	Above sector median of 6.1%
Return on Equity (ROE)	19.9%	Good	Efficient use of shareholder equity
Gross Margin	31.2%	Good	Competitive pricing environment
Operating Margin	5.6%	Adequate	Moderate operational efficiency

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Cash Flow: DOLLAR GENERAL CORP generates $2.0B FCF at 4.6% margin, positive NaN/8 quarters

FCF TTM $2.0B. FCF margin 4.6%, Top 50%. OCF/Net income 1.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-08-27.

Metric	DG	Rating	Context
Free Cash Flow Margin	4.6%	Warning	Thin cash margins
Free Cash Flow (TTM)	$2.0B	Good	Positive cash generation
OCF/Net Income	1.9x	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, 12.3x interest coverage

Debt/Equity 0.5x. Total debt $4.6B, cash & investments $1.6B. Interest coverage 12.3x. Source: 10-Q filed 2026-08-27.

Metric	DG	Rating	Context
Debt to Equity	0.5x	Good	Conservative capital structure
Net Cash Position	$-3.0B	Warning	Net debt position
Interest Coverage	12.3x	Excellent	Comfortable debt service

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Valuation: DOLLAR GENERAL CORP trades at 16.1x earnings

P/E 16.1x. EV/Sales 0.7x. FCF yield 7.3%. Dividend yield 1.9%. Source: 10-Q filed 2026-08-27.

Metric	DG	Rating	Context
P/E Ratio	16.1x	Adequate	Reasonable valuation
EV/Sales	0.7x	Excellent	Attractive revenue multiple
FCF Yield	7.3%	Good	Attractive cash return
Dividend Yield	1.9%	Adequate	Growth focus over income

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Capital Allocation: DOLLAR GENERAL CORP returns 1.9% shareholder yield

Total shareholder yield 1.9% (div 1.9%). Share count +0.2% YoY. Capital returned $520.1M TTM. Source: 10-Q filed 2026-08-27.

Metric	DG	Rating	Context
Total Shareholder Yield	1.9%	Adequate	Dividend + buyback yield combined
Share Count Change (YoY)	0.2%	Adequate	Net dilution from issuance/SBC
Total Capital Returned (TTM)	$520.1M	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	7.6%	Top 50%	1.2x above
Free Cash Flow Margin	4.6%	Top 50%	1.3x above
Gross Margin	31.2%	Bottom 50%	0.8x below
Operating Margin	5.6%	Top 50%	1.4x above
Return on Equity (ROE)	19.9%	Top 50%	2.0x above
P/E Ratio	16.1x	N/A	-

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Financial Scorecard

Metric	DG	Rating	Sector Context
Return on Invested Capital (ROIC)	7.6%	Warning	Top 50% of sector (median: 6.1%)
Free Cash Flow Margin	4.6%	Warning	Top 50% of sector (median: 3.6%)
Gross Margin	31.2%	Good	Bottom 50% of sector (median: 38.7%)
Debt to Equity Ratio	49.2%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	16.1x	Adequate	Fair value
Free Cash Flow Yield	7.3%	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 7.6%. The 8-quarter median ROIC is 7.3% with a improving trend. Sector median 6.1%. Source: 10-Q filed 2026-08-27.

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

DOLLAR GENERAL CORP (DG) has a free cash flow margin of 4.6%, generating $2.0 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-08-27.

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 16.1x, which is above the sector median of N/A. EV/Sales 0.7x. FCF yield 7.3%. Source: 10-Q filed 2026-08-27.

Q: Does DOLLAR GENERAL CORP pay a dividend?

DOLLAR GENERAL CORP (DG) currently pays a dividend yield of 1.9%. Total shareholder yield (dividend + buybacks) 1.9%. Source: 10-Q filed 2026-08-27.

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

DOLLAR GENERAL CORP (DG) grew revenue by 4.8% year-over-year. EPS +42.3% YoY. Source: 10-Q filed 2026-08-27.

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 7.6%, sector median 6.1% (Top 50%). FCF margin 4.6%, sector median 3.6% (Top 50%). Gross margin 31.2%, 7.6pp 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?

Quantitative warning flags for DOLLAR GENERAL CORP (DG): 1) FCF margin 4.6% (below 5%). Source: 10-Q filed 2026-08-27.

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Data Source: Data sourced from 10-Q filed 2026-08-27. TTM metrics as of Q3 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.