Dollar General Corporation (DG)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking for a business I can understand, bought at a sensible price. Dollar General is a discount retailer selling consumables and household basics, so demand is defensive and beta is 0.23. But a Graham-style bargain it is not: at the $125 close on 2026-10-13, FairStock’s Graham Number is $85.40, leaving the price about 46% above that asset-based benchmark. The FairStock P/E is 16.23, P/B is 2.97, and FCF yield is 7.3%, which offers some cash return but not a large margin of safety. In fiscal Q2 2026, the quarter ended 2026-07-31, revenue was $11.3B and net income was $550.3M, or diluted EPS of $2.48. That compares with revenue of $10.7B, net income of $411.4M, and diluted EPS of $1.86 in fiscal Q2 2025, the quarter ended 2025-08-01. The recent bounce is real. However, the longer record is mixed: FY2025, the year ended 2026-01-30, had revenue of $42.7B, net income of $1.5B, and diluted EPS of $6.85, while FY2023, ended 2024-02-02, had revenue of $38.7B and diluted EPS of $7.55. FairStock classifies this as a SLOW GROWER — Shrinking, with profit down 10.6% a year over five years and revenue up 4.8%. Financial health is uneven: FairStock ROE is 19.69%, but D/E is 1.70, ROCE is 4.89%, Altman Z is 1.43, and Piotroski is 8/9. The dividend yield is 1.93%. Overall, a durable low-price retailer with decent cash flow, but not deeply undervalued by the numbers I see.

In plain English: Dollar General runs discount stores that sell everyday basics like food, cleaning supplies and household goods. The business is defensive, but profit has slipped over several years even though the latest quarter was better than a year earlier. At $125, the stock looks more expensive than a conservative value measure and does not look clearly cheap, though it does generate solid cash.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-31) · fiscal Q1 2026 10-Q (period ended 2026-05-01) · fiscal Q3 2025 10-Q (period ended 2025-10-31) · fiscal Q2 2025 10-Q (period ended 2025-08-01) · FY2025 10-K (period ended 2026-01-30) · FY2024 10-K (period ended 2025-01-31) · FY2023 10-K (period ended 2024-02-02)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer