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Dollar General Corporation

DG
41
Discount Stores · Consumer Defensive
Price
$125.75
-1.41 (-1.11%)
Market Cap
$27.74B
Winston Score
41
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

6.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 235.8M (2022) → 220.8M (2026)

Dollar General runs a chain of small discount stores across the United States. The stores sell everyday items like food, cleaning supplies, health products, and basic clothing at low prices. It is one of the largest discount retailers in the country, with over 19,000 locations, most of them in small towns and rural areas that larger retailers like Walmart often do not serve.

The company makes money by selling physical goods directly to shoppers in its stores, keeping costs low through simple store formats and a focused product selection. Almost all of its stores are in the U.S., making it heavily tied to the American consumer economy. Its main competitive advantage is its convenience in underserved communities, where it often faces little direct competition. The key risk is that its core customers — lower-income households — are sensitive to inflation and economic pressure, which can squeeze both shopper spending and Dollar General's own profit margins at the same time.

Winston Score History

Politician Trades

8 trades / 12mo

2 Congressional buys and 6 sells on DG in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+5.9% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+123.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Insider Activity

0.8%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$1.1B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Dollar General Corporation is growing revenue at 6% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
30.4%
Modest — 30.4% gross margin
Operating Margin
5.6%
Thin — 5.6% operating margin
ROCE
4.1%
Weak — 4.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+4.7%
Slow sales growth (4.7% YoY)
EPS YoY
-3.9%
Earnings shrinking (-3.9% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
350%
Turns 350% of profit into real cash
FCF Margin
7.2%
Modest free cash flow (7.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.72
Moderate — manageable debt (0.72)
Interest Cover
8.29x
Comfortably covers interest (8.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
21.1x
Growth-priced — P/E 21.1

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+6.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (21.1 → 14.5)

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Dividends

Dividend Yield
1.85%
Small dividend — 1.85% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+0.0%
Dividend flat

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