DOLLAR TREE INC (DLTR) Stock Fundamental Analysis
USA - NASDAQ:DLTR - US2567461080 - Common Stock
102.07 USD
+1.22 (+1.21%)
101.814 USD
-0.26 (-0.25%)
We assign a fundamental rating of 4 out of 10 to DLTR. DLTR was compared to 39 industry peers in the Consumer Staples Distribution & Retail industry. DLTR has an average financial health and profitability rating. 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's Return On Assets of -21.90% is on the low side compared to the rest of the industry. DLTR is outperformed by 84.62% of its industry peers.
DLTR has a Return On Equity of -81.30%. This is amonst the worse of the industry: DLTR underperforms 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 8.75%.
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
The Operating Margin of DLTR (9.44%) is better than 94.87% of its industry peers.
DLTR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 37.52%, DLTR belongs to the best of the industry, outperforming 82.05% of the companies in the same industry.
In the last couple of years the Gross Margin of DLTR has grown nicely.
| 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.
Compared to 1 year ago, DLTR has less shares outstanding
Compared to 5 years ago, DLTR has less shares outstanding
DLTR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.30 indicates that DLTR is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.30, 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.
With an excellent Debt to FCF ratio value of 1.35, DLTR belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that DLTR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.76, DLTR perfoms like the industry average, outperforming 43.59% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for DLTR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 3.3 |
ROIC/WACC1.48
WACC7.94%
2.3 Liquidity
DLTR has a Current Ratio of 1.04. This is a normal value and indicates that DLTR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DLTR (1.04) is worse than 61.54% of its industry peers.
A Quick Ratio of 0.27 indicates that DLTR may have some problems paying its short term obligations.
DLTR's Quick ratio of 0.27 is on the low side compared to the rest of the industry. DLTR is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The earnings per share for DLTR have decreased strongly by -10.76% in the last year.
Measured over the past 5 years, DLTR shows a small growth in Earnings Per Share. The EPS has been growing by 2.24% on average per year.
The Revenue for DLTR has decreased by -45.82% in the past year. This is quite bad
DLTR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.73% yearly.
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.
DLTR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.26% yearly.
EPS Next Y5.34%
EPS Next 2Y10.55%
EPS Next 3Y10.62%
EPS Next 5Y8.27%
Revenue Next Year-37.15%
Revenue Next 2Y-18.35%
Revenue Next 3Y-11.07%
Revenue Next 5Y-5.26%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
DLTR is valuated rather expensively with a Price/Earnings ratio of 20.17.
DLTR's Price/Earnings ratio is in line with the industry average.
DLTR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.03.
Based on the Price/Forward Earnings ratio of 15.67, the valuation of DLTR can be described as correct.
Based on the Price/Forward Earnings ratio, DLTR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, DLTR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.17 | ||
| Fwd PE | 15.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DLTR is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, DLTR is valued cheaply inside the industry as 82.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.29 | ||
| EV/EBITDA | 11.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DLTR does not grow enough to justify the current Price/Earnings ratio.
DLTR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.77
PEG (5Y)8.99
EPS Next 2Y10.55%
EPS Next 3Y10.62%
5. Dividend
5.1 Amount
No dividends for DLTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
102.07
+1.22 (+1.21%)
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 Change1.12%
Ins Owners0.11%
Ins Owner Change-0.41%
Market Cap20.82B
Revenue(TTM)16.78B
Net Income(TTM)-2930900000
Analysts70.59
Price Target111.14 (8.89%)
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)-2.64%
PT rev (3m)14.21%
EPS NQ rev (1m)-0.92%
EPS NQ rev (3m)-17.76%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)2.23%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.17 | ||
| Fwd PE | 15.67 | ||
| P/S | 1.24 | ||
| P/FCF | 10.29 | ||
| P/OCF | 7.32 | ||
| P/B | 5.77 | ||
| P/tB | 6.54 | ||
| EV/EBITDA | 11.5 |
EPS(TTM)5.06
EY4.96%
EPS(NY)6.51
Fwd EY6.38%
FCF(TTM)9.92
FCFY9.72%
OCF(TTM)13.94
OCFY13.65%
SpS82.26
BVpS17.67
TBVpS15.6
PEG (NY)3.77
PEG (5Y)8.99
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 | 3.3 |
F-Score5
WACC7.94%
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 Y5.34%
EPS Next 2Y10.55%
EPS Next 3Y10.62%
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-37.15%
Revenue Next 2Y-18.35%
Revenue Next 3Y-11.07%
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 3Y17.98%
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 4 / 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 5 / 10.