Dollar General's ROE Analysis: Understanding the Company's Financial Prospects

Dollar General Corporation's stock has seen a 40% increase in the last three months. The company's ROE is 16%, similar to the industry average of 15%. However, the company's five-year net income decline of 17% raises questions about the factors hampering growth, such as high dividend payments or competitive pressures. The industry has seen an earnings growth of 12% in the same period, which is worrisome.