Dollar General DG
US discount store chain selling basic products at low prices in rural and suburban areas. Dollar General shows weak financial health (ND/EBITDA 3.96) but an attractive valuation (P/E 16.21, FCF yield 6.31%) and 33.3% earnings growth, supported by its position in the discount segment. The main risk is its high leverage and the sensitivity of its low-income customer base to economic pressure.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
US discount store chain selling basic products at low prices in rural and suburban areas. Dollar General shows weak financial health (ND/EBITDA 3.96) but an attractive valuation (P/E 16.21, FCF yield 6.31%) and 33.3% earnings growth, supported by its position in the discount segment. The main risk is its high leverage and the sensitivity of its low-income customer base to economic pressure.
Score by category
| Category | Score |
|---|---|
| Financial health | 3.7 |
| Quality / Moat | 5.8 |
| Valuation | 6.9 |
| Growth | 6.9 |
| Dividend | 6.3 |
| Momentum | 7.4 |
| Risk & Context | 8.7 |
OVERALL SCORE: 6.4/10
Context and risks
The rise in 10-year Treasury yields (5.17%) and the context of rising ECB rates do not directly affect DG, but its high leverage (ND/EBITDA 3.96) and its low-income discretionary consumer profile make it vulnerable to an economic slowdown. The main risk is pressure on the low-income consumer, its customer base, which could affect its sales.
News considered in the analysis
- Halloween Spending Expected to Set Record. Bargain-Hunting Dominates. — El gasto récord en Halloween y la tendencia de caza de gangas refuerzan la demanda de tiendas de descuento como DG, aunque es un evento estacional de impacto moderado.
- Dollar General CEO warns $100k a year is no longer enough to feel like you’re higher income — Comentario del CEO sobre la percepción de ingresos; no aporta información nueva sobre los fundamentales de la empresa.
- HSBC Upgrades Dollar General (DG) and Lifts its Target to $160 — Upgrade de HSBC con aumento del precio objetivo a $160; refleja una visión positiva de analistas, pero es una opinión que puede estar parcialmente descontada.
- 3 Consumer Stocks We’re Skeptical Of — Artículo escéptico sobre acciones de consumo, incluyendo posiblemente DG; es una opinión general sin datos concretos, impacto limitado.
- COST Q4 Earnings Beat Estimates on Sales and Digital Strength — Noticia sobre Costco, un competidor, pero no aporta información directa sobre los fundamentales de Dollar General.
Verdict: Hold, with caution due to leverage and sensitivity to the low-income consumer.
Main risk: High leverage (ND/EBITDA 3.96) and reliance on a low-income consumer, who is most vulnerable to inflation and an economic slowdown, are the biggest risks for Dollar General.
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