Dollar GeneralWBO:DGEN -1.13%74 Operating Margin % is 5.92% as of Apr. 2026, which is 30% below its 10-year median of 8.43. GuruFocus rates WBO:DGEN with a GF Score™ of 74/100 and a GF Value™ of €106.98 (Fairly Valued). The stock has 3 warning signs investors should review. Among 310 Retail - Defensive companies, Dollar General ranks better than 69.68% on this metric.
Dollar General Corp operating margin has been in a 5-year decline. The average rate of decline per year is -16.5%.
The historical rank and industry rank for Dollar General's Operating Margin % or its related term are showing as below:
WBO:DGEN'
s Operating Margin % Range Over the Past 10 Years
Min: 4.22 Med: 8.43 Max: 10.53
Current: 5.26
WBO:DGEN's Operating Margin % is ranked better than 69.68% of 310
companies
in the Retail - Defensive industry
Industry Median: 3.275
vs WBO:DGEN: 5.26
Dollar General's 5-Year Average Operating Margin % Growth Rate was -16.50% per year.
Dollar General (WBO:DGEN) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Dollar General Operating Margin % Related Terms
Dollar General Operating Margin % Historical Data
* Premium members only.
The historical data trend for Dollar General's Operating 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.
WBO:DGEN vs DLTR, BJ, PSMT: Operating Margin % Comparison
For the Discount Stores subindustry, Dollar General's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Dollar General's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dollar General's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Dollar General's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as
* 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.
Dollar General (WBO:DGEN) has a Operating Margin % of 5.92% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Dollar General and its competitors. This is 30% below median its historical median of 8.43. Over the past decade, Dollar General's Operating Margin % has ranged from 4.22 to 10.53. According to the industry distribution chart, Dollar General ranks #94 out of 310 companies in the Retail - Defensive industry, placing it in the top 30.3%.
Is Dollar General's Operating Margin % too high?
Dollar General's current Operating Margin % of 5.92% is 30% below median its 10-year median of 8.43. Over the past 10 years, this metric has ranged from a low of 4.22 to a high of 10.53. The Retail - Defensive industry median Operating Margin % is 3.28. Dollar General's value of 5.92% is 80.8% above this industry median. Based on the distribution chart, Dollar General ranks #94 out of 310 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Dollar General has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dollar General's Operating Margin % compare to DLTR and BJ?
According to the Retail - Defensive industry distribution chart, Dollar General ranks #94 out of 310 companies for Operating Margin %. This puts Dollar General in the upper half of its industry. The industry median Operating Margin % is 3.28. Dollar General's value of 5.92% is 80.8% above this benchmark. Historically, Dollar General's own Operating Margin % has ranged from 4.22 to 10.53 over the past decade. While the company's 10-year median is 8.43 vs. the industry median of 3.28, 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 Operating Margin % for a Retail - Defensive company?
The median Operating Margin % among Retail - Defensive companies is 3.28, based on 310 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dollar General's current Operating Margin % of 5.92% is 80.8% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Dollar General and its competitors. For the Retail - Defensive industry, the median Operating Margin % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dollar General's current Operating Margin % is 5.92%, which is 30% below median its own 10-year median of 8.43. 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 (WBO:DGEN) is currently considered Fairly Valued. The stock's GF Value™ is €106.98, compared to a current price of €100.55 — trading 6% below its estimated fair value. The current Operating Margin % is 5.92%, which is 30% below median its 10-year median of 8.43 and 80.8% above the Retail - Defensive industry median of 3.28. Dollar General's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Dollar General (WBO:DGEN), the current Operating Margin % is 5.92% 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 (WBO:DGEN) Overvalued in 2026?
Based on GuruFocus' analysis, Dollar General stock appears to be undervalued.
The current stock price of €100.55 is trading 6% below its estimated GF Value™ of €106.98.
GuruFocus considers Dollar General to be Fairly Valued.
Key valuation signals for WBO:DGEN:
Operating Margin %: 5.92% (30% below median its 10-year median of 8.43)
GF Value™: €106.98 vs. price of €100.55 (6% below fair value)
Industry Position: 80.8% above the Retail - Defensive median (#94 of 310)
No single metric tells the full story. See the WBO:DGEN 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.
74GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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