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When combined with the companys robust cash generation (free cash flow averaged in the midteens as a percentage of sales the last three years, which we think can hold over our forecast), we posit that this should unlock opportunities for enhanced financial flexibility to beef up its return to shareholders (in addition to investing in its existing operations), with our forecast calling for mid-single-digit increases in its annual dividend in short order. Erin Lash, director of consumer sector equity research Dollar General Economic Moat: Narrow Fair Value Estimate: $140.00 Weve lowered our fair value estimate for Dollar General to $140 per share from $179 due to a significant pullback in our profitability expectations for the next several years and a more subdued midcycle operating margin forecast of 8.2% (from 9.0%)

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