Is the business good?
How good a business is DG?
Dollar General earns 15% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
15%
Return on invested capital · cost of capital 9.0% · 5.8 points above what the capital costs: growth creates value
- Operating margin
- 5.3%
Operating margin · Discount Stores median 4.5% · 12 months to Q1 2026
- Cash conversion
- 1.41×
Cash conversion · 1.66× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.65%
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 Q1 2026
- 31%
- Operating margin12 months to Q1 2026
- 5.3%
- Net margin12 months to Q1 2026
- 3.6%
- Free cash flow margin
- 5.1%
- Revenue, trailing twelve months
- $43.1B
- Free cash flow, trailing twelve months
- $2.20B
- Net income, trailing twelve months
- $1.56B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 15%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.