Dollar General

Methodology

Dollar General's discount retail model historically generated predictable earnings growth from new store openings and same-store sales, though recent operational challenges create uncertainty. Inventory management issues and competition from Walmart and e-commerce pressure margins. Fair value calculations now require more conservative assumptions about sustainable store growth rates and margin normalization.

Methodology

Dollar General trades at low PEG ratios (0.8-1.5x) reflecting concerns about slowing comparable sales growth and margin pressure from increased competition. The company's rural small-format strategy faces headwinds from dollar store saturation in some markets. PEG appears attractive but reflects legitimate questions about return to historical growth rates.

Methodology

Dollar General pays a modest dividend yielding around 2%, making PEGY somewhat more attractive than PEG for this challenged retailer. The company maintains conservative payout ratios with room for dividend growth as operations stabilize. Total return benefits from yield component, though investors focus primarily on operational turnaround execution.