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DG Dollar General Corporation - Fundamental Analysis

NEUTRAL
DG Stock | Fundamental Analysis & Investment Insights
NYSE Consumer Defensive Discount Stores
Current Price
$136.82
Analyst Target
$132.71
-3.0% Downside
52W High
$139.83
52W Low
$66.43

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Confidence Score
72%
Analysis Accuracy
Dollar General's financial health is stable with a Piotroski F-Score of 6/9 and an exceptionally high Altman Z-Score of 88645617971.2, indicating negligible bankruptcy risk. The company trades above its Graham Number of $69.61 at $136.82, supported by strong earnings growth of 43.8% YoY and a reasonable forward P/E of 19.38, though profitability margins lag sector averages. While analyst consensus is 'buy' and recent price momentum is strong (+85.5% 1Y), insider selling and weak technical trend (10/100) raise caution. Relative to peers, DG shows mixed valuation and growth signals, warranting a balanced outlook.

Key Strengths

Exceptionally high Altman Z-Score indicates near-zero bankruptcy risk
Strong year-over-year earnings growth of 43.8%
Forward P/E of 19.38 is below sector average of 25.00, suggesting relative value
Solid ROE of 16.45% despite sector-wide margin pressures
Recent earnings beats with 3 out of last 4 quarters exceeding estimates

Key Risks

High Debt/Equity ratio of 2.02, above sector average of 1.78
Very low Quick Ratio of 0.18, indicating potential liquidity stress
Insider selling activity totaling $8.27M in last 6 months
Technical trend score of 10/100 suggests weak near-term price momentum
Profit margin of 3.03% significantly below sector average of 12.76%
AI Fair Value Estimate
Based on comprehensive analysis
$150.0
+9.6% above current price

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