DG Dollar General Corporation - Fundamental Analysis
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DG Stock | Fundamental Analysis & Investment Insights
NYSE
Consumer Defensive
Discount Stores
Current Price
Live
$131.84
Analyst Target
$148.86
+12.9%
Upside
52W High
$158.23
52W Low
$78.1
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
AI-powered fundamental assessment
Confidence
78%
Dollar General (DG) exhibits a stable Piotroski F-Score of 6/9, indicating solid operational health, though the absence of an Altman Z-Score raises concerns about long-term financial distress risk. The stock trades at a forward P/E of 16.47, below the sector average of 33.63, suggesting relative valuation appeal despite a high current P/E of 22.77. Earnings growth has been explosive (122% YoY), but this is likely driven by one-time factors, as evidenced by inconsistent quarterly surprises and a recent 42% miss. The Graham Number ($70.97) and intrinsic value ($170.81) suggest a wide valuation gap, with the current price of $131.84 implying a premium for growth. Insider selling activity over the past six months, totaling $8.27M, introduces bearish sentiment despite the buy recommendation from analysts.
Key Strengths
Piotroski F-Score of 6/9 indicates stable operational performance and positive financial trends
Forward P/E of 16.47 is significantly below sector average (33.63), suggesting undervaluation potential
Strong earnings growth (122% YoY) and recent positive EPS surprises (avg +24.79% over last 4 quarters)
High ROE of 18.99% and solid gross margin of 30.66% reflect efficient capital use and pricing power
Consistent dividend payments with a 40.76% payout ratio, indicating sustainable distribution policy
Key Risks
Absence of Altman Z-Score raises unquantified bankruptcy risk; debt/equity ratio of 1.85 is elevated for a consumer defensive firm
Extremely low quick ratio (0.17) and current ratio (1.14) signal weak short-term liquidity and high reliance on inventory
Insider selling activity totaling $8.27M in 6 months with no buys indicates potential internal skepticism
Recent earnings volatility, including a 42% miss in Q1 2025, undermines confidence in sustained growth
Price-to-sales of 0.68 is low, but combined with negative sector average profit margin (-1.11%), suggests underlying margin pressure
AI Fair Value Estimate
Based on comprehensive analysis
$170.81
+29.6% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare DG against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations
Past News Coverage
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