| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 75 | 16.2x | 17.8x | Top tier | |
Growth | 66 | 4.8% | 7.1% | Top tier | |
Quality | 66 | 7.6% | 4.5% | Top tier | |
Safety | 55 | 4.0x | 2.6x | Around median | |
Capital Return | 71 | 1.89% | 2.12% | Top tier | |
Momentum | 42 | 11.1% | 2.9% | Around median | |
Sentiment | 70 | 26 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Dollar General operates a network of more than 21 thousand stores, with a footprint located within five miles of approximately 75% of the U.S. population, with a clear focus on rural communities and customers seeking value and convenience. The company generates revenue primarily from selling consumable and non-consumable goods at everyday low prices, offering more than 2,000 items priced at one dollar or less, including more than 600 recurring items within Value Valley. The stores are supported by myDG Delivery and partnerships with DoorDash and Uber Eats, while DG Media Network serves as an additional source of growth and profitability from advertising spending across digital and in-store channels.
In Q2 of fiscal year 2027, net sales rose 5.2% to $11.3 billion, and same-store sales increased 3.5%, driven by 2% growth in customer traffic and a 1.5% increase in the average basket. Gross profit according to EDGAR data was approximately $3.7 billion, and the company recorded a gross margin of 32.6%, up 127 basis points, while operating profit rose 29.2% to $769 million and its margin expanded 126 basis points to 6.8%. Net income reached $550.3 million and diluted earnings per share were $2.48, up 33%, while all four categories delivered positive same-store sales growth for the sixth consecutive quarter, led by non-consumables with 4.5% growth.
For the twelve months ended in 2026, Dollar General recorded revenue of $43.6 billion, gross profit of $13.6 billion, net income of $1.7 billion, and earnings per share of approximately $7.69, compared with revenue of $42.7 billion and net income of $1.5 billion in fiscal year 2025. The company also generated $1.5 billion in operating cash flow during the first half and ended the quarter with inventory of $6.6 billion, approximately flat year over year and down 2.7% based on average inventory per store.
The average analyst price target is $139.94, with a “Buy” consensus and a wide target range of $110 to $170; the average is approximately 11.6% below the 52-week range high of $158.23, while the highest target exceeds that high. The 52-week range of $95.11 to $158.23, together with the wide range of analyst targets, indicates that the market is balancing improved sales and margins and share repurchases on one hand against the non-recurrence of most of the tariff refund benefit and fuel and consumer pressures on the other.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Net sales rose 5.2% to $11.3 billion, and same-store sales grew 3.5%, driven by a 2% increase in customer traffic and a 1.5% increase in the average basket. Gross margin improved 127 basis points to 32.6%, and operating profit rose 29.2% to $769 million. Earnings per share also increased 33% to $2.48, including approximately $0.25 related to the tariff refund after reinvestment.
Management expects net sales growth of between 4% and 4.3% and same-store sales growth of between 2.5% and 2.9%. It expects diluted earnings per share of between $7.80 and $8.00, with an effective tax rate of approximately 24.5%. The guidance includes a benefit of approximately $0.25 per share from the tariff refund and share repurchases of up to $700 million in the second half.
Dollar General offers more than 2,000 items priced at one dollar or less, and Value Valley alone includes more than 600 recurring items, compared with approximately 500 previously. Value Valley same-store sales growth exceeded 16% in Q2 of fiscal year 2027, clearly outperforming the network average. The company also expanded off-shelf one-dollar offerings to more than 9,000 stores and intends to increase the number of seasonal items at this price by 40% in the second half.
Automated analysis for informational purposes only — not investment advice.
Delivery services added approximately 40 basis points to same-store sales growth in the quarter, and management estimated their sales incrementality at approximately 80%. The channels include myDG Delivery and partnerships with DoorDash and Uber Eats, and digital and delivery customers are more than twice as productive as customers who are not digitally engaged. The company reported that more than one million customers began with delivery and then became in-store shoppers at Dollar General.
Project Renovate focuses on full store remodels, adding or replacing coolers, and updating the format, while Project Elevate includes improving assets, assortment, and category adjacencies across up to 80% of the store. Through the end of the quarter, the company completed 1,324 Renovate projects and 1,422 Elevate projects, compared with annual targets of 2,000 and 2,250 projects. Management is targeting an annual increase of approximately 6% in same-store sales at Renovate locations and approximately 3% at Elevate locations.
The low-income customer is under pressure from inflation and fuel costs, and management observes that this customer visits stores more often but purchases less on each visit. The company also expects fuel costs to remain elevated and modest deleverage in selling, general, and administrative expenses during fiscal year 2026. In addition, the quarter benefited by approximately 81 basis points in gross margin and $0.25 per share from the tariff refund, while management does not expect a similarly material impact in the second half.
