DOLLAR TREE INC (DLTR)
US2567461080 - Common Stock
DLTR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 43 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DLTR was profitable.
In the past year DLTR had a positive cash flow from operations.
Of the past 5 years DLTR 4 years were profitable.
DLTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DLTR's Return On Assets of -4.71% is on the low side compared to the rest of the industry. DLTR is outperformed by 76.74% of its industry peers.
DLTR's Return On Equity of -14.44% is on the low side compared to the rest of the industry. DLTR is outperformed by 69.77% of its industry peers.
DLTR has a better Return On Invested Capital (7.07%) than 60.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLTR is in line with the industry average of 8.39%.
| 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
The Operating Margin of DLTR (5.03%) is better than 86.05% of its industry peers.
In the last couple of years the Operating Margin of DLTR has declined.
With an excellent Gross Margin value of 30.78%, DLTR belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
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
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.
Compared to 5 years ago, DLTR has less shares outstanding
The debt/assets ratio for DLTR is higher compared to a year ago.
2.2 Solvency
DLTR has an Altman-Z score of 2.68. This is not the best score and indicates that DLTR is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.68, DLTR is not doing good in the industry: 62.79% 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 46.51% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that DLTR is not too dependend on debt financing.
The Debt to Equity ratio of DLTR (0.36) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.88
WACC8.06%
2.3 Liquidity
A Current Ratio of 1.02 indicates that DLTR should not have too much problems paying its short term obligations.
The Current ratio of DLTR (1.02) is comparable to the rest of the industry.
A Quick Ratio of 0.17 indicates that DLTR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.17, DLTR is doing worse than 88.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.89% over the past year.
The Earnings Per Share has been growing slightly by 1.77% on average over the past years.
Looking at the last year, DLTR shows a small growth in Revenue. The Revenue has grown by 5.65% in the last year.
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)0.89%
EPS 3Y1.68%
EPS 5Y1.77%
EPS Q2Q%-26.37%
Revenue 1Y (TTM)5.65%
Revenue growth 3Y6.26%
Revenue growth 5Y6.04%
Sales Q2Q%0.73%
3.2 Future
The Earnings Per Share is expected to grow by 10.09% on average over the next years. This is quite good.
Based on estimates for the next years, DLTR will show a small growth in Revenue. The Revenue will grow by 2.96% on average per year.
EPS Next Y-7.27%
EPS Next 2Y1.79%
EPS Next 3Y5.77%
EPS Next 5Y10.09%
Revenue Next Year0.5%
Revenue Next 2Y2.06%
Revenue Next 3Y2.83%
Revenue Next 5Y2.96%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 13.00, which indicates a correct valuation of DLTR.
Compared to the rest of the industry, the Price/Earnings ratio of DLTR indicates a somewhat cheap valuation: DLTR is cheaper than 76.74% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.29, DLTR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.96, the valuation of DLTR can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DLTR indicates a rather cheap valuation: DLTR is cheaper than 83.72% of the companies listed in the same industry.
DLTR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 11.96 |
4.2 Price Multiples
DLTR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DLTR is cheaper than 72.09% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as DLTR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.4 | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)7.34
EPS Next 2Y1.79%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
DLTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DOLLAR TREE INC
NASDAQ:DLTR (12/23/2024, 6:54:38 PM)
After market: 73.5 -0.23 (-0.31%)73.73
+0.79 (+1.08%)
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 Change-2.3%
Ins Owners0.09%
Ins Owner Change0.99%
Market Cap15.85B
Analysts68.57
Price Target83.61 (13.4%)
Short Float %4.44%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-1.69%
PT rev (3m)-39.61%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-22.12%
EPS NY rev (1m)0.53%
EPS NY rev (3m)-9.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 11.96 | ||
| P/S | 0.51 | ||
| P/FCF | 34.4 | ||
| P/OCF | 5.74 | ||
| P/B | 2.15 | ||
| P/tB | 3.67 | ||
| EV/EBITDA | 7.48 |
EPS(TTM)5.67
EY7.69%
EPS(NY)6.17
Fwd EY8.36%
FCF(TTM)2.14
FCFY2.91%
OCF(TTM)12.85
OCFY17.43%
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 | 2.68 |
F-Score6
WACC8.06%
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)0.89%
EPS 3Y1.68%
EPS 5Y1.77%
EPS Q2Q%-26.37%
EPS Next Y-7.27%
EPS Next 2Y1.79%
EPS Next 3Y5.77%
EPS Next 5Y10.09%
Revenue 1Y (TTM)5.65%
Revenue growth 3Y6.26%
Revenue growth 5Y6.04%
Sales Q2Q%0.73%
Revenue Next Year0.5%
Revenue Next 2Y2.06%
Revenue Next 3Y2.83%
Revenue Next 5Y2.96%
EBIT growth 1Y-8.76%
EBIT growth 3Y-4.7%
EBIT growth 5Y-1.83%
EBIT Next Year45.23%
EBIT Next 3Y19.22%
EBIT Next 5Y16.37%
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%