Consumer Defensive

Dollar General Corporation (DG)

$106.27
-3.33%
$24.4B
Market Cap
16.1
P/E Ratio
0.28
Beta
2.13%
Dividend Yield
Piotroski 7/9Altman Z 2.5 Gray ZoneBeneish M -3.56 CleanROIC−WACC -0.2%

Quantitative Summary

Deterministic

At 16.1x earnings — a 50% discount to the sector average of 32.6x — DG is in the lower valuation range. Strong operational fundamentals (Piotroski 7/9) with Altman Z of 2.5. DCF fair value of $618 implies 418% upside from current prices based on model assumptions.

Generated deterministically from quant metrics and financial statements. Not a recommendation.

Algorithmic Teardown

AI-Generated

The capital allocation efficiency for Dollar General Corporation is currently constrained, evidenced by an ROIC of 5.6% that trails the weighted average cost of capital (WACC) at 5.9%, resulting in a negative spread of -0.3%. Despite this inefficiency in value creation relative to financing costs, equity returns are supported by high leverage rather than operational excellence; the DuPont decomposition reveals an ROE of 15.2% driven primarily by an equity multiplier of 4.2x, while net margins remain thin at 2.8%. Fundamental stability metrics present a mixed picture: the Piotroski F-Score of 5/9 suggests moderate financial health, yet the Altman Z-Score of 2.4 indicates proximity to distress thresholds, whereas the negative Beneish M-Score of -2.65 signals low earnings manipulation risk and high reporting credibility.

Valuation metrics display a significant divergence between current market pricing and discounted cash flow models. Trading at 17.5x forward earnings, the stock is priced substantially below the sector average of 34.4x, suggesting a deep discount relative to peers in the consumer defensive space. However, this valuation gap appears anchored by pessimistic growth assumptions embedded within the DCF framework; with an implied free cash flow decline rate of -9% over ten years and a fair value calculation yielding only $937 against current levels, the model reflects minimal expectations for future expansion rather than inherent undervaluation based on quality.

Risk factors further complicate the investment thesis through factor exposure and insider behavior. The stock exhibits a growth tilt with a negative HML value of -0.147, contrasting its defensive sector classification, while profitability alpha is neutral at 0.004 despite a positive Fama-French annualized alpha of 0.46%. With no significant insider buying or selling activity over the past ninety days ($0 flow), there is little internal signal to corroborate either bullish or bearish sentiment regarding future operational trajectories.

Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.

DCF Sandbox

Interactive
Market Price
$106.27
Fair Value
$615
Implied Upside
+478.5%
$615IMPLIED FAIR VALUEUNDERVALUEDOVERUNDER
Growth Rate (Y1–5)26%
-10%20%50%
Discount Rate (WACC)7.4%
5%12.5%20%

5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.

Reverse DCFMarket-Implied
-4.9%annual FCF growth priced in at $106.27

The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of 5% YoY revenue.

Sensitivity Matrix

TG ↓ / WACC →6%7.4%9.4%
2%$708$512$360
3%$927$618$409
4%$1365$786$476

Center = base case. Green = >10% upside, Red = >10% downside vs $106.27.

Pre-computed DCF: WACC=7.4%, terminal growth 3%. Fair value $618 (+418.0%). Not investment advice.

Valuation Context

16.1x
DG P/E
32.6x
Sector Avg
22.3x
5Y Avg P/E
-50%
vs Sector

Currently trading 24% below its 5-year average P/E of 22.3x.

Price Chart with Moving Averages

Loading chart...
SMA 50 SMA 200

Technical Setup

AI Generated

Dollar General Corporation is currently trading at $106.23, a price point that exists within the broader context of consumer defensive sector dynamics where institutional positioning often shifts based on macroeconomic stability signals rather than pure growth narratives. The absence of specific moving average crossover data or volume trend metrics in the provided snapshot prevents a definitive assessment of whether larger market participants are actively accumulating shares through aggressive buying or gradually reducing exposure via systematic selling. Without visible confirmation that price action is decisively breaching key support levels with accompanying high-volume participation, it remains ambiguous if institutional capital views this valuation as an attractive entry point for long-term holdings or merely a neutral holding zone during periods of sector rotation. In the absence of concrete technical indicators such as short-term moving average crossovers or significant volume spikes relative to historical averages, one cannot infer whether sophisticated traders are building substantial positions anticipating future upside or unwinding stakes due to potential downside risks inherent in discretionary retail spending patterns. The current market price sits independently without immediate contextual data on trend strength or momentum shifts that typically accompany institutional consensus changes. Consequently, the technical landscape appears static regarding large-cap player behavior until further price movement is accompanied by corroborating volume analysis, leaving the interpretation of whether this level represents a strategic accumulation zone for defensive portfolios or a distribution area open to varied professional assessments depending on broader economic forecasts.

RSI (14)
SMA 50
SMA 200

Quant Health Deep Dive

7/9
Piotroski F-Score
Strong — high operational efficiency and profitability signals
2.5
Altman Z-Score
Grey Zone — between 1.8 and 3.0 thresholds. Thresholds: >3 safe, 1.8–3 grey, <1.8 distress.
-3.56
Beneish M-Score
Below threshold — no statistical earnings quality concern per Beneish model. Threshold: <-2.22 = below threshold.

Profitability & Value Creation

30.7%
Gross Margin
3.5%
Net Margin
7.2%
ROIC
7.4%
WACC
ROIC − WACC Spread: -0.2%— Negative spread.
+5.2%
Revenue Growth (YoY)
+34.4%
Earnings Growth (YoY)
2.4B
Free Cash Flow
22%
FCF Payout Ratio

✅ Conservative payout — room for dividend increases.

DuPont Analysis — ROE Decomposition

Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.

2.8%
Net Profit Margin
NI ÷ Revenue
×
1.30x
Asset Turnover
Revenue ÷ Assets
×
4.20x
Equity Multiplier
Assets ÷ Equity
=
15.2%
Return on Equity
⚠️ High equity multiplier — ROE is being amplified by leverage, not operational excellence.

Balance Sheet Health

2.64x
Debt / Equity
1.13x
Current Ratio
9.5x
Interest Coverage
1.1x
Net Debt / EBITDA
8.28%
FCF Yield
3.2B
EBITDA

Earnings Surprise History

Q4
✓ Beat
Est: $1.49
Act: $1.78
+19.6%
Q3
✓ Beat
Est: $1.57
Act: $1.86
+18.5%
Q2
✓ Beat
Est: $0.93
Act: $1.28
+37.6%
Q1
✓ Beat
Est: $1.64
Act: $1.93
+17.8%

EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.

Dividend History

$0.5900
Latest Dividend
$2.36
2025 Total
0.0%
YoY Growth
Annual Dividends per Share
$0.75
2016
$0.78
2017
$1.13
2018
$1.25
2019
$1.40
2020
$1.62
2021
$2.62
2022
$1.77
2023
$2.36
2024
$2.36
2025
$1.18
2026
DateAmountChange
2026-04-07$0.59000.0%
2026-01-06$0.59000.0%
2025-10-07$0.59000.0%
2025-07-08$0.59000.0%
2025-04-08$0.59000.0%
2025-01-07$0.59000.0%
2024-10-08$0.59000.0%
2024-07-09$0.59000.0%
2024-04-08$0.59000.0%
2024-01-08$0.59000.0%
2023-10-06$0.59000.0%
2023-07-10$0.59000.0%

Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.

Risk Profile

35.5%
Annual Volatility
0.97
Sharpe (1Y)
-0.33
Sharpe (3Y)
-68.1%
Max Drawdown (3Y)
-72.6%
Max Drawdown (5Y)

Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.

Underwater (Drawdown from Peak)

How far below the all-time high the price has been over time. Deeper = more pain for holders.

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Rolling 60-Day Beta vs S&P 500 (VOO)

How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.

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Rolling Beta Market (β = 1.0)

Fama-French 5-Factor Exposure

Academic factor model decomposition — what's really driving this stock's returns.

0.04
Market β
Mkt-RF
+0.431
Size (SMB)
Small-cap tilt
-0.147
Value (HML)
Growth tilt
+0.004
Profit (RMW)
Neutral
+0.787
Invest (CMA)
Conservative
Alpha (annual): +0.46%
R²: 3.9%of variance explained by 5 factors

Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.

Fundamentals

13.9
Forward P/E
1.52
PEG Ratio
2.86
Price/Book
4M
Avg Volume
$158.23
52W High
$95.11
52W Low
18%
52W Range Position

Passive Flow Attribution

ETF Draft Effect
$6.2B
Tracked Passive Exposure
8
ETFs Holding DG
0.08%
Avg Weight in ETFs
$7.3T
Total ETF AUM

When investors buy or sell ETFs like XLP or XRT, the fund manager is mechanically forced to buy or sell DG shares regardless of Dollar General Corporation's individual fundamentals. We estimate $6.2B of passive capital is structurally linked to DG through 8 tracked ETFs. This substantial passive exposure means that ETF inflows and outflows — not company fundamentals — can dominate daily volume on this stock.

Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.

ETF Contagion Visualizer

Simulate a price drop in Dollar General Corporation to visualize passive redemption contagion across ETFs and collateral stocks.

DG Shock
-0%
Est. Passive Redemption
$0
Systemic Risk
STABLE
DGEpicenterVTIETFVOOETFIVVETFWMTLow RiskWMTLow RiskCOSTLow RiskCOSTLow RiskPGLow Risk
DG Price Drop (%)0

If Dollar General Corporation (DG) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies Walmart Inc. (WMT) as the most exposed collateral stock, sharing 1 ETFs with DG. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.

Contagion model based on shared ETF exposure and constituent weights across 39 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.

DG Ownership Dynamics

Passive funds hold 1 in every 4 DG shares, reducing daily market volatility.

Ticker
DG
Total Shares
220M
ETF Lock-Up
22.7%
Display Mode
Total Float Impact
22.7%Locked Float

Dollar General Corporation (DG) exerts notable gravity on the passive index market, currently representing 1.5% of the State Street Consumer Staples Select Sector SPDR ETF (XLP) and 1.0% of the XRT (XRT). Across 39 tracked ETFs, approximately 50M shares (22.7% of float) are held by passive funds and rarely trade on the open market. This high passive lock-up reduces the effective active float, which can amplify daily price volatility and momentum signals.

Float lock-up computed from 39 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).

DG Institutional Volume Profile

252-day volume distribution by price level. The Point of Control (POC) marks the price where the most institutional volume transacted — an implicit support/resistance floor.

TICKER
DG
PRICE
$106.27
FLOOR (POC)
$112.18
STRENGTH
High
$96$997%$10311%$10610%$106.27$10912%$112POC 13%$115$119$122$125$128$131$134$138$141$144$147$150$153$157
Focus Zone
Point of Control (POC) Support (below price) Resistance (above price) Current Price

The highest-volume price zone for Dollar General Corporation over the past year sits near $112.18 (13% of 252-day volume). The current price of $106.27 sits 5.3% below the POC — suggesting potential mean-reversion upside if institutional demand reasserts at this level. The highly concentrated volume profile (13% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.

Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.

DG Capital Efficiency

How efficiently does Dollar General Corporation convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.

Free Cash Flow
$2.4B
EBITDA
$3.2B
FCF Conversion
74%
Reinvestment Rate
26%
74% of EBITDA → Free Cash
0% (cash burn)25% (low)50% (efficient)100% (pure cash)
ROIC
7.2%
ROIC − WACC Spread
-0.2%

Dollar General Corporation converts 74% of its EBITDA into free cash flow, an exceptional conversion rate indicating an asset-light business model with minimal capital reinvestment drag. However, the ROIC-WACC spread is negative (-0.2%), suggesting reinvested capital is destroying shareholder value.

Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.

Fails-to-Deliver (FTD) History

SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.

DateFailed SharesClose PriceNotional Value
2026-05-14537$101.75$54,639.75
2026-04-20200$126.68$25,336
2026-04-172$123.47$246.94
2026-04-14600$119.26$71,556
2026-04-10594$119.75$71,131.5
2026-04-0610,000$119.74$1.2M
2026-04-012,169$118.73$257,525.37
2026-03-272,855$119.23$340,401.65
2026-03-265,302$119.55$633,854.1
2026-03-2522$117.88$2,593.36
2026-03-2353,490$124.52$6.7M
2026-03-127$144.84$1,013.88
2026-03-10767$145.52$111,613.84
2026-03-06361$146.55$52,904.55
2026-03-05361$151.60$54,727.6
2026-03-024,190$156.24$654,645.6
2026-02-23443$150.64$66,733.52
2026-02-172,628$153.84$404,291.52
2026-02-09100$146.65$14,665
2026-02-046$148.04$888.24
2026-01-26800$146.92$117,536
2026-01-2055,299$148.74$8.2M
2026-01-121,000$142.74$142,740
2026-01-06849$138.93$117,951.57
2025-12-29963$137.84$132,739.92
2025-12-23385$137.52$52,945.2
2025-12-2232,100$137.28$4.4M
2025-12-191,432$136.68$195,725.76
2025-12-152,700$133.21$359,667
2025-12-0812,083$132.37$1.6M

Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.

Price Correlations

Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.

Peer252-Day (1Y)126-Day (6M)Direction
WTGXXNaNNaN
DLTR0.5460.583Moderate
TSCO0.3360.369Moderate
MCD0.3150.354Moderate
FERG0.3040.166Moderate
WMT0.2780.352Low correlation
HD0.2630.327Low correlation
CLX0.2620.342Low correlation
WWD0.2530.292Low correlation
EL0.2530.347Low correlation

Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.

Compare DG to Peers

Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.

SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.