DG Stock Analysis — Dollar General
Sector: Retail
AI Verdict
You're getting Dollar General's rural moat at a below-average 15.1x forward P/E, but with only 7.8% earnings growth expected, this is a fair price for a slow-but-steady compounder.
Competitive Moat
Dollar General dominates rural and small-town retail with a dense network of over 19,000 stores, making it the default low-cost option in areas underserved by big-box competitors. Its scale and logistics efficiency create a cost advantage that is hard for new entrants to replicate.
Summary
Dollar General trades at 15.1x next year's earnings, below the consumer staples median, as investors weigh modest growth against its entrenched rural footprint.
Where It Stands
The stock is up 2.18% over the past year, RSI sits at a neutral 61.4, and its 15.1x forward P/E is a discount to the sector median of 20x for consumer staples.
Key Metrics
- RSI: 61.4 — Near Overbought
- Trailing P/E: 16.2x
- Forward P/E: 15.1x
- PEG Ratio: 1.94
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Market Cap: $25.3B
- Dividend Yield: 0.02%
- 1-Year Return: 2.18%
- 52-Week High: $158.23
- 52-Week Low: $95.11
Analyst Consensus
18 Buy · 21 Hold · 1 Sell (40 analysts)
Bull Case
Forward EPS is expected to grow 7.8% while you pay just 15.1x earnings, which is cheap for a defensive retailer with Dollar General's scale.
Bear Case
If the P/E reverts from 15.1x to the sector's 12x low end, that's a 20% downside before any earnings growth is considered.
Catalyst to Watch
Watch for quarterly same-store sales trends—any acceleration above the recent 4.7% revenue growth could justify a higher multiple.