DOLLAR TREE INC (DLTR) Stock Fundamental Analysis
USA - NASDAQ:DLTR - US2567461080 - Common Stock
104.75 USD
+1.6 (+1.55%)
104.17 USD
-0.58 (-0.55%)
Overall DLTR gets a fundamental rating of 5 out of 10. We evaluated DLTR against 39 industry peers in the Consumer Staples Distribution & Retail industry. DLTR has only an average score on both its financial health and profitability. DLTR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DLTR had positive earnings in the past year.
In the past year DLTR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DLTR reported negative net income in multiple years.
DLTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DLTR has a worse Return On Assets (-21.90%) than 84.62% of its industry peers.
DLTR has a worse Return On Equity (-81.30%) than 87.18% of its industry peers.
The Return On Invested Capital of DLTR (11.76%) is better than 82.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DLTR is in line with the industry average of 8.72%.
The 3 year average ROIC (10.12%) for DLTR is below the current ROIC(11.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -21.9% | ||
| ROE | -81.3% | ||
| ROIC | 11.76% |
ROA(3y)-4.59%
ROA(5y)-0.23%
ROE(3y)-23.79%
ROE(5y)-7.15%
ROIC(3y)10.12%
ROIC(5y)9.34%
1.3 Margins
Looking at the Operating Margin, with a value of 9.44%, DLTR belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
In the last couple of years the Operating Margin of DLTR has grown nicely.
DLTR has a better Gross Margin (37.52%) than 82.05% of its industry peers.
DLTR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.44% | ||
| PM (TTM) | N/A | ||
| GM | 37.52% |
OM growth 3Y9.44%
OM growth 5Y6.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.8%
GM growth 5Y3.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DLTR is creating some value.
The number of shares outstanding for DLTR has been reduced compared to 1 year ago.
DLTR has less shares outstanding than it did 5 years ago.
DLTR has a worse debt/assets ratio than last year.
2.2 Solvency
DLTR has an Altman-Z score of 3.33. This indicates that DLTR is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.33, DLTR is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
The Debt to FCF ratio of DLTR is 1.35, which is an excellent value as it means it would take DLTR, only 1.35 years of fcf income to pay off all of its debts.
DLTR has a Debt to FCF ratio of 1.35. This is amongst the best in the industry. DLTR outperforms 84.62% of its industry peers.
DLTR has a Debt/Equity ratio of 0.76. This is a neutral value indicating DLTR is somewhat dependend on debt financing.
DLTR has a Debt to Equity ratio (0.76) which is comparable to the rest of the industry.
Although DLTR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 3.33 |
ROIC/WACC1.48
WACC7.95%
2.3 Liquidity
A Current Ratio of 1.04 indicates that DLTR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.04, DLTR perfoms like the industry average, outperforming 41.03% of the companies in the same industry.
DLTR has a Quick Ratio of 1.04. This is a bad value and indicates that DLTR is not financially healthy enough and could expect problems in meeting its short term obligations.
DLTR has a Quick ratio of 0.27. This is in the lower half of the industry: DLTR underperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
DLTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.76%.
The Earnings Per Share has been growing slightly by 2.24% on average over the past years.
The Revenue for DLTR has decreased by -45.82% in the past year. This is quite bad
The Revenue has been decreasing by -5.73% on average over the past years.
EPS 1Y (TTM)-10.76%
EPS 3Y-2.78%
EPS 5Y2.24%
EPS Q2Q%-14.93%
Revenue 1Y (TTM)-45.82%
Revenue growth 3Y-12.59%
Revenue growth 5Y-5.73%
Sales Q2Q%-38.06%
3.2 Future
DLTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.27% yearly.
The Revenue is expected to decrease by -5.26% on average over the next years.
EPS Next Y5.45%
EPS Next 2Y10.77%
EPS Next 3Y11.11%
EPS Next 5Y8.27%
Revenue Next Year-37.14%
Revenue Next 2Y-18.47%
Revenue Next 3Y-11.13%
Revenue Next 5Y-5.26%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.70 indicates a rather expensive valuation of DLTR.
The rest of the industry has a similar Price/Earnings ratio as DLTR.
When comparing the Price/Earnings ratio of DLTR to the average of the S&P500 Index (25.89), we can say DLTR is valued slightly cheaper.
DLTR is valuated correctly with a Price/Forward Earnings ratio of 16.02.
DLTR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of DLTR to the average of the S&P500 Index (34.59), we can say DLTR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 16.02 |
4.2 Price Multiples
DLTR's Enterprise Value to EBITDA ratio is in line with the industry average.
82.05% of the companies in the same industry are more expensive than DLTR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.56 | ||
| EV/EBITDA | 11.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DLTR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.8
PEG (5Y)9.22
EPS Next 2Y10.77%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
No dividends for DLTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
104.75
+1.6 (+1.55%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners109.24%
Inst Owner Change1.22%
Ins Owners0.11%
Ins Owner Change-0.41%
Market Cap21.37B
Revenue(TTM)16.78B
Net Income(TTM)-2.93B
Analysts68.82
Price Target111.14 (6.1%)
Short Float %9.42%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.8%
Min EPS beat(2)2.81%
Max EPS beat(2)36.79%
EPS beat(4)3
Avg EPS beat(4)9.17%
Min EPS beat(4)-5.74%
Max EPS beat(4)36.79%
EPS beat(8)3
Avg EPS beat(8)-1.02%
EPS beat(12)4
Avg EPS beat(12)-0.99%
EPS beat(16)6
Avg EPS beat(16)0.78%
Revenue beat(2)1
Avg Revenue beat(2)0.1%
Min Revenue beat(2)-0.08%
Max Revenue beat(2)0.27%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)0.27%
Revenue beat(8)1
Avg Revenue beat(8)-1.56%
Revenue beat(12)1
Avg Revenue beat(12)-1.24%
Revenue beat(16)2
Avg Revenue beat(16)-1.33%
PT rev (1m)-3.88%
PT rev (3m)7.83%
EPS NQ rev (1m)-0.62%
EPS NQ rev (3m)-17.63%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)2.33%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 16.02 | ||
| P/S | 1.27 | ||
| P/FCF | 10.56 | ||
| P/OCF | 7.52 | ||
| P/B | 5.93 | ||
| P/tB | 6.71 | ||
| EV/EBITDA | 11.74 |
EPS(TTM)5.06
EY4.83%
EPS(NY)6.54
Fwd EY6.24%
FCF(TTM)9.92
FCFY9.47%
OCF(TTM)13.94
OCFY13.3%
SpS82.26
BVpS17.67
TBVpS15.6
PEG (NY)3.8
PEG (5Y)9.22
Graham Number44.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -21.9% | ||
| ROE | -81.3% | ||
| ROCE | 16% | ||
| ROIC | 11.76% | ||
| ROICexc | 12.59% | ||
| ROICexgc | 13.17% | ||
| OM | 9.44% | ||
| PM (TTM) | N/A | ||
| GM | 37.52% | ||
| FCFM | 12.06% |
ROA(3y)-4.59%
ROA(5y)-0.23%
ROE(3y)-23.79%
ROE(5y)-7.15%
ROIC(3y)10.12%
ROIC(5y)9.34%
ROICexc(3y)10.93%
ROICexc(5y)10.07%
ROICexgc(3y)13.1%
ROICexgc(5y)13.01%
ROCE(3y)13.36%
ROCE(5y)12.32%
ROICexgc growth 3Y6.23%
ROICexgc growth 5Y4.41%
ROICexc growth 3Y18.09%
ROICexc growth 5Y11.96%
OM growth 3Y9.44%
OM growth 5Y6.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.8%
GM growth 5Y3.73%
F-Score5
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 1.35 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 227.77% | ||
| Cap/Sales | 4.88% | ||
| Interest Coverage | 11.56 | ||
| Cash Conversion | 146.3% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 3.33 |
F-Score5
WACC7.95%
ROIC/WACC1.48
Cap/Depr(3y)236.14%
Cap/Depr(5y)196.44%
Cap/Sales(3y)6.31%
Cap/Sales(5y)5.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.76%
EPS 3Y-2.78%
EPS 5Y2.24%
EPS Q2Q%-14.93%
EPS Next Y5.45%
EPS Next 2Y10.77%
EPS Next 3Y11.11%
EPS Next 5Y8.27%
Revenue 1Y (TTM)-45.82%
Revenue growth 3Y-12.59%
Revenue growth 5Y-5.73%
Sales Q2Q%-38.06%
Revenue Next Year-37.14%
Revenue Next 2Y-18.47%
Revenue Next 3Y-11.13%
Revenue Next 5Y-5.26%
EBIT growth 1Y-23%
EBIT growth 3Y-4.34%
EBIT growth 5Y-0.01%
EBIT Next Year38.76%
EBIT Next 3Y17.19%
EBIT Next 5Y12.03%
FCF growth 1Y291.75%
FCF growth 3Y56.35%
FCF growth 5Y13.4%
OCF growth 1Y40.85%
OCF growth 3Y25.98%
OCF growth 5Y8.89%
DOLLAR TREE INC / DLTR FAQ
Can you provide the ChartMill fundamental rating for DOLLAR TREE INC?
ChartMill assigns a fundamental rating of 5 / 10 to DLTR.
Can you provide the valuation status for DOLLAR TREE INC?
ChartMill assigns a valuation rating of 5 / 10 to DOLLAR TREE INC (DLTR). This can be considered as Fairly Valued.
How profitable is DOLLAR TREE INC (DLTR) stock?
DOLLAR TREE INC (DLTR) has a profitability rating of 6 / 10.
Can you provide the financial health for DLTR stock?
The financial health rating of DOLLAR TREE INC (DLTR) is 6 / 10.