DOLLAR TREE INC (DLTR) Stock Fundamental Analysis
NASDAQ:DLTR - Nasdaq - US2567461080 - Common Stock - Currency: USD
Overall DLTR gets a fundamental rating of 3 out of 10. We evaluated DLTR against 40 industry peers in the Consumer Staples Distribution & Retail industry. There are concerns on the financial health of DLTR while its profitability can be described as average. DLTR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DLTR was profitable.
DLTR had a positive operating cash flow in the past year.
DLTR had positive earnings in 4 of the past 5 years.
DLTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -4.71%, DLTR is not doing good in the industry: 74.36% of the companies in the same industry are doing better.
With a Return On Equity value of -14.44%, DLTR is not doing good in the industry: 71.79% of the companies in the same industry are doing better.
DLTR's Return On Invested Capital of 7.07% is fine compared to the rest of the industry. DLTR outperforms 66.67% of its industry peers.
DLTR had an Average Return On Invested Capital over the past 3 years of 8.10%. This is in line with the industry average of 8.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.71% | ||
| ROE | -14.44% | ||
| ROIC | 7.07% |
ROA(3y)2.87%
ROA(5y)3.86%
ROE(3y)7.34%
ROE(5y)10.73%
ROIC(3y)8.1%
ROIC(5y)8.09%
1.3 Margins
DLTR has a better Operating Margin (5.03%) than 87.18% of its industry peers.
DLTR's Operating Margin has declined in the last couple of years.
DLTR has a better Gross Margin (30.78%) than 79.49% of its industry peers.
DLTR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.03% | ||
| PM (TTM) | N/A | ||
| GM | 30.78% |
OM growth 3Y-10.31%
OM growth 5Y-7.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.04%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
DLTR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, DLTR has less shares outstanding
The number of shares outstanding for DLTR has been reduced compared to 5 years ago.
Compared to 1 year ago, DLTR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.71 indicates that DLTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.71, 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 7.98, which is on the high side as it means it would take DLTR, 7.98 years of fcf income to pay off all of its debts.
DLTR has a Debt to FCF ratio of 7.98. This is comparable to the rest of the industry: DLTR outperforms 48.72% of its industry peers.
DLTR has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
DLTR has a Debt to Equity ratio (0.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.88
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.02 indicates that DLTR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.02, DLTR is doing worse than 61.54% of the companies in the same industry.
DLTR has a Quick Ratio of 1.02. 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 0.17. This is amonst the worse of the industry: DLTR underperforms 87.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
DLTR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.07%.
Measured over the past 5 years, DLTR shows a small growth in Earnings Per Share. The EPS has been growing by 1.77% on average per year.
The Revenue has grown by 8.02% in the past year. This is quite good.
Measured over the past years, DLTR shows a small growth in Revenue. The Revenue has been growing by 6.04% on average per year.
EPS 1Y (TTM)6.07%
EPS 3Y1.68%
EPS 5Y1.77%
EPS Q2Q%9.8%
Revenue 1Y (TTM)8.02%
Revenue growth 3Y6.26%
Revenue growth 5Y6.04%
Sales Q2Q%3.46%
3.2 Future
The Earnings Per Share is expected to grow by 9.73% on average over the next years. This is quite good.
DLTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.83% yearly.
EPS Next Y-7.15%
EPS Next 2Y2.07%
EPS Next 3Y5.24%
EPS Next 5Y9.73%
Revenue Next Year0.53%
Revenue Next 2Y2.09%
Revenue Next 3Y2.7%
Revenue Next 5Y2.83%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.99, the valuation of DLTR can be described as correct.
Based on the Price/Earnings ratio, DLTR is valued a bit cheaper than the industry average as 79.49% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.63, DLTR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.09, the valuation of DLTR can be described as correct.
Based on the Price/Forward Earnings ratio, DLTR is valued cheaper than 87.18% of the companies in the same industry.
DLTR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 12.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DLTR indicates a somewhat cheap valuation: DLTR is cheaper than 69.23% of the companies listed in the same industry.
DLTR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.97 | ||
| EV/EBITDA | 7.77 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)7.34
EPS Next 2Y2.07%
EPS Next 3Y5.24%
5. Dividend
5.1 Amount
No dividends for DLTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
74.96
-1.33 (-1.74%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.58%
Inst Owner Change4.93%
Ins Owners0.09%
Ins Owner Change0.24%
Market Cap16.12B
Analysts68.57
Price Target85.57 (14.15%)
Short Float %5.01%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-19.17%
Min EPS beat(2)-36.9%
Max EPS beat(2)-1.45%
EPS beat(4)0
Avg EPS beat(4)-11.19%
Min EPS beat(4)-36.9%
Max EPS beat(4)-0.61%
EPS beat(8)1
Avg EPS beat(8)-6.06%
EPS beat(12)3
Avg EPS beat(12)-2%
EPS beat(16)6
Avg EPS beat(16)1.59%
Revenue beat(2)0
Avg Revenue beat(2)-2.67%
Min Revenue beat(2)-3.39%
Max Revenue beat(2)-1.94%
Revenue beat(4)0
Avg Revenue beat(4)-2.68%
Min Revenue beat(4)-3.39%
Max Revenue beat(4)-1.94%
Revenue beat(8)0
Avg Revenue beat(8)-1.64%
Revenue beat(12)1
Avg Revenue beat(12)-1.63%
Revenue beat(16)1
Avg Revenue beat(16)-1.72%
PT rev (1m)0%
PT rev (3m)0.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.04%
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 12.09 | ||
| P/S | 0.52 | ||
| P/FCF | 34.97 | ||
| P/OCF | 5.83 | ||
| P/B | 2.18 | ||
| P/tB | 3.73 | ||
| EV/EBITDA | 7.77 |
EPS(TTM)5.77
EY7.7%
EPS(NY)6.2
Fwd EY8.27%
FCF(TTM)2.14
FCFY2.86%
OCF(TTM)12.85
OCFY17.14%
SpS144
BVpS34.32
TBVpS20.07
PEG (NY)N/A
PEG (5Y)7.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.71% | ||
| ROE | -14.44% | ||
| ROCE | 9.37% | ||
| ROIC | 7.07% | ||
| ROICexc | 7.32% | ||
| ROICexgc | 9.01% | ||
| OM | 5.03% | ||
| PM (TTM) | N/A | ||
| GM | 30.78% | ||
| FCFM | 1.49% |
ROA(3y)2.87%
ROA(5y)3.86%
ROE(3y)7.34%
ROE(5y)10.73%
ROIC(3y)8.1%
ROIC(5y)8.09%
ROICexc(3y)8.46%
ROICexc(5y)8.52%
ROICexgc(3y)11.49%
ROICexgc(5y)12.01%
ROCE(3y)10.58%
ROCE(5y)10.57%
ROICexcg growth 3Y-12.62%
ROICexcg growth 5Y-17.81%
ROICexc growth 3Y-6.83%
ROICexc growth 5Y-9.66%
OM growth 3Y-10.31%
OM growth 5Y-7.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.04%
GM growth 5Y0.03%
F-Score6
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 7.98 | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 249.56% | ||
| Cap/Sales | 7.44% | ||
| Interest Coverage | 11.62 | ||
| Cash Conversion | 111.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 2.71 |
F-Score6
WACC7.99%
ROIC/WACC0.88
Cap/Depr(3y)185.58%
Cap/Depr(5y)169.65%
Cap/Sales(3y)5.07%
Cap/Sales(5y)4.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.07%
EPS 3Y1.68%
EPS 5Y1.77%
EPS Q2Q%9.8%
EPS Next Y-7.15%
EPS Next 2Y2.07%
EPS Next 3Y5.24%
EPS Next 5Y9.73%
Revenue 1Y (TTM)8.02%
Revenue growth 3Y6.26%
Revenue growth 5Y6.04%
Sales Q2Q%3.46%
Revenue Next Year0.53%
Revenue Next 2Y2.09%
Revenue Next 3Y2.7%
Revenue Next 5Y2.83%
EBIT growth 1Y-8.76%
EBIT growth 3Y-4.7%
EBIT growth 5Y-1.83%
EBIT Next Year46.37%
EBIT Next 3Y19.64%
EBIT Next 5Y15.93%
FCF growth 1Y305.01%
FCF growth 3Y-31.79%
FCF growth 5Y-9.47%
OCF growth 1Y127.25%
OCF growth 3Y-0.39%
OCF growth 5Y8.74%