Is the business good?
How good a business is DG?
Dollar General earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 6.7 points above what the capital costs: growth creates value
- Operating margin
- 5.6%
Operating margin · Discount Stores median 4.5% · 12 months to Q2 2026
- Cash conversion
- 1.18×
Cash conversion · 1.55× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.29%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 11% |
| FY2021 | 9.4% |
| FY2022 | 8.8% |
| FY2023 | 6.3% |
| FY2024 | 4.2% |
| FY2025 | 5.2% |
Details›
- Gross margin12 months to Q2 2026
- 31%
- Operating margin12 months to Q2 2026
- 5.6%
- Net margin12 months to Q2 2026
- 3.9%
- Free cash flow margin
- 4.6%
- Revenue, trailing twelve months
- $43.6B
- Free cash flow, trailing twelve months
- $2.01B
- Net income, trailing twelve months
- $1.70B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Consumer Defensive
Ranks #25 of 110 by Smart Score