Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Dollar General (DG) delivered a strong FY2025 with revenue growing 5.2% to $42.7B, net income surging 34.4% to $1.51B, and operating margin expanding nearly 1 percentage point to 5.16%, driven by improved gross margins and disciplined cost management.
Revenue
$42.72B
+5.20% YoY
EPS (Diluted)
$6.85
+34.05% YoY
Gross Margin
30.7%
+1.1 pts YoY
Operating Income
$2.2B
+28.56% YoY
Source: SEC XBRL
Dollar General (DG) reported FY2025 revenue of $42.72B, up 5.2% year over year. Operating margin was 5.2%, up 1.0 points from 4.2% a year earlier. Operating cash flow was $3.63B, up 21.3% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.00 | 1.94 | Beat +3.0% |
| Mar 2026 | 1.93 | 1.70 | Beat +13.7% |
| Dec 2025 | 1.28 | 0.97 | Beat +31.4% |
| Sep 2025 | 1.86 | 1.61 | Beat +15.2% |
Compiled by AI from this SEC filing
DG grew total revenue 5.2% year-over-year to $42.72B in FY2025 (vs. $40.61B in FY2024), reflecting continued consumer demand for value-oriented retail. The growth was broad-based across the store base.
Source: 10-K Income Statement (Financial Data)
Gross margin improved 107 basis points to 30.66% (from 29.59% prior year), with gross profit rising 9.0% to $13.10B. This outpaced revenue growth, suggesting better inventory management, favorable product mix, or reduced shrink headwinds.
Source: 10-K Income Statement & Key Ratios (Financial Data)
Operating income jumped 28.6% to $2.20B from $1.71B, with operating margin expanding to 5.16% from 4.22%. SG&A grew only 5.8% to $10.90B, slower than gross profit growth of 9.0%, demonstrating meaningful operating leverage.
Source: 10-K Income Statement (Financial Data)
Operating cash flow rose 21.3% to $3.63B, significantly exceeding net income of $1.51B, reflecting healthy non-cash add-backs (D&A of $1.05B) and working capital dynamics. Free cash flow (operating cash flow minus capex implied by investing activities) was approximately $2.40B.
Source: 10-K Cash Flow Statement (Financial Data)
Total liabilities declined 5.3% to $22.45B while stockholders' equity grew 14.8% to $8.51B, reducing the debt-to-equity ratio. Cash and equivalents increased 22.1% to $1.14B, strengthening the liquidity position.
Source: 10-K Balance Sheet (Financial Data)
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
DG carries a debt-to-equity ratio of 2.64x, indicating significant financial leverage relative to equity. While total liabilities declined in FY2025, the company remains heavily reliant on debt financing, which could constrain flexibility if operating conditions deteriorate or interest rates remain elevated.
Source: 10-K Balance Sheet & Key Ratios (Financial Data)
With a net margin of only 3.54%, Dollar General has limited cushion to absorb cost shocks such as supply chain disruptions, wage inflation, or tariff-related cost increases. A modest deterioration in gross margin or SG&A could disproportionately impact net income.
Source: 10-K Income Statement & Key Ratios (Financial Data)
SG&A expenses of $10.90B represent approximately 25.5% of revenue and grew 5.8% year-over-year, reflecting ongoing labor, occupancy, and operational costs across a large store network. Sustained wage inflation or increased shrink could pressure this line item further.
Source: 10-K Income Statement (Financial Data)
Financing cash flow was -$2.19B in FY2025, a 69.3% increase in outflows versus -$1.29B in FY2024, suggesting higher debt repayments or share buybacks. This limits the capital available for reinvestment in store growth or technology upgrades.
Source: 10-K Cash Flow Statement (Financial Data)
The current ratio of 1.13x is only marginally above 1.0, meaning current assets barely cover current liabilities of $6.96B. Any unexpected working capital needs or inventory build-up could strain short-term liquidity.
Source: 10-K Balance Sheet & Key Ratios (Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 42.72 $B | 40.61 $B | +5.20% |
Cost of Revenue $B | 29.62 $B | 28.59 $B | +3.60% |
Gross Profit $B | 13.10 $B | 12.02 $B | +9.01% |
Operating Income $B | 2.20 $B | 1.71 $B | +28.56% |
Net Income $B | 1.51 $B | 1.13 $B | +34.40% |
EPS (Basic) $ | 6.87 $ | 5.12 $ | +34.18% |
EPS (Diluted) $ | 6.85 $ | 5.11 $ | +34.05% |
SG&A Expense $B | 10.90 $B | 10.30 $B | +5.75% |
Answers draw on this SEC filing and the data on this page
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