DG Stock Analysis — Dollar General
Sector: Retail
AI Verdict
Dollar General trades at a discount to sector peers at 15.3x forward earnings, but with only 5.3% growth expected and a high PEG, you’re paying a fair price for a moat that’s steady but not spectacular.
Competitive Moat
Dollar General operates a dense network of small-box discount stores in rural and underserved areas, making it hard for big-box competitors to match its convenience and low-cost distribution. Its scale in logistics and real estate gives it a cost advantage that protects margins even in low-income markets.
Summary
Dollar General trades at 15.3x next year's earnings, with modest 5.3% EPS growth expected and a defensible rural footprint.
Where It Stands
The stock is up 13.74% over the past year, RSI sits at a neutral 61.2, and its 15.3x forward P/E is below the 20x consumer staples median.
Key Metrics
- RSI: 61.2 — Near Overbought
- Trailing P/E: 16.1x
- Forward P/E: 15.3x
- PEG Ratio: 3.02
- Earnings Growth: +0.1%
- Revenue Growth: +0.1%
- Market Cap: $24.4B
- Dividend Yield: 0.02%
- 1-Year Return: 13.74%
- 52-Week High: $158.23
- 52-Week Low: $95.11
Analyst Consensus
20 Buy · 18 Hold · 1 Sell (39 analysts)
Bull Case
You’re paying 15.3x forward earnings for a business with a 5.3% EPS growth forecast and a moat in rural retail logistics.
Bear Case
If the P/E multiple reverts to the sector median of 20x, there’s upside, but if growth disappoints, the PEG ratio of 3.02 says you’re paying a premium the numbers don’t yet support.
Catalyst to Watch
Watch for quarterly earnings updates—any acceleration or deceleration in EPS growth versus the 5.3% consensus will reset expectations.