Dollar GeneralMEX:DGG 71 Gross Margin % is 31.62% as of Apr. 2026, which is 3% above its 10-year median of 30.72. GuruFocus rates MEX:DGG with a GF Score™ of 71/100 and a GF Value™ of MXN1,844.61 (Fairly Valued). The stock has 3 warning signs investors should review. Among 305 Retail - Defensive companies, Dollar General ranks better than 70.16% on this metric.
Dollar General Corp gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Dollar General's Gross Margin % or its related term are showing as below:
MEX:DGG'
s Gross Margin % Range Over the Past 10 Years
Min: 29.59 Med: 30.72 Max: 31.76
Current: 30.83
During the past 13 years, the highestGross Margin % of Dollar General was 31.76%. The lowest was 29.59%. And the median was 30.72%.
MEX:DGG's Gross Margin % is ranked better than 70.16% of 305
companies
in the Retail - Defensive industry
Industry Median: 24.14
vs MEX:DGG: 30.83
Dollar General had a gross margin of 31.62% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Dollar General was -1.20% per year.
Dollar General (MEX:DGG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Dollar General had a gross margin of 31.62% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Dollar General Gross Margin % Related Terms
Dollar General Gross Margin % Historical Data
* Premium members only.
The historical data trend for Dollar General's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:DGG vs DLTR, BJ, PSMT: Gross Margin % Comparison
For the Discount Stores subindustry, Dollar General's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dollar General Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Dollar General's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dollar General's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Dollar General (MEX:DGG) has a Gross Margin % of 31.62% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dollar General and its competitors. This is near median its historical median of 30.72. Over the past decade, Dollar General's Gross Margin % has ranged from 29.59 to 31.76. According to the industry distribution chart, Dollar General ranks #91 out of 305 companies in the Retail - Defensive industry, placing it in the top 29.8%.
Is Dollar General's Gross Margin % too high?
Dollar General's current Gross Margin % of 31.62% is near median its 10-year median of 30.72. Over the past 10 years, this metric has ranged from a low of 29.59 to a high of 31.76. The Retail - Defensive industry median Gross Margin % is 24.14. Dollar General's value of 31.62% is 31% above this industry median. Based on the distribution chart, Dollar General ranks #91 out of 305 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Dollar General has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dollar General's Gross Margin % compare to DLTR and BJ?
According to the Retail - Defensive industry distribution chart, Dollar General ranks #91 out of 305 companies for Gross Margin %. This puts Dollar General in the upper half of its industry. The industry median Gross Margin % is 24.14. Dollar General's value of 31.62% is 31% above this benchmark. Historically, Dollar General's own Gross Margin % has ranged from 29.59 to 31.76 over the past decade. While the company's 10-year median is 30.72 vs. the industry median of 24.14, Dollar General has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.14, based on 305 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dollar General's current Gross Margin % of 31.62% is 31% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Dollar General and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dollar General's current Gross Margin % is 31.62%, which is near median its own 10-year median of 30.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dollar General stock overvalued right now?
Based on GuruFocus' analysis, Dollar General (MEX:DGG) is currently considered Fairly Valued. The stock's GF Value™ is MXN1,844.61, compared to a current price of MXN1,808.00 — trading 2% below its estimated fair value. The current Gross Margin % is 31.62%, which is near median its 10-year median of 30.72 and 31% above the Retail - Defensive industry median of 24.14. Dollar General's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Dollar General (MEX:DGG), the current Gross Margin % is 31.62% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dollar General (MEX:DGG) Overvalued in 2026?
Based on GuruFocus' analysis, Dollar General stock appears to be undervalued.
The current stock price of MXN1,808.00 is trading 2% below its estimated GF Value™ of MXN1,844.61.
GuruFocus considers Dollar General to be Fairly Valued.
Key valuation signals for MEX:DGG:
Gross Margin %: 31.62% (near median its 10-year median of 30.72)
GF Value™: MXN1,844.61 vs. price of MXN1,808.00 (2% below fair value)
Industry Position: 31% above the Retail - Defensive median (#91 of 305)
No single metric tells the full story. See the MEX:DGG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Since its beginning in 1939, Dollar General has grown to become the largest dollar store operator in the United States, with more than 20,000 small-box discount stores across 48 states. The firm generated over $42 billion in fiscal 2025 sales. The retailer maintains a heavy concentration of stores in rural and low-income markets underserved by big-box retailers. It's 11,000 stock-keeping units, including 2,000 priced at $1 or less, span consumables (82% of sales), seasonal items (10%), home products (5%), and apparel (3%). More than 20% of sales are derived from private label.
71GF Score
Get the complete analysis for MEX:DGG
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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