DOLLAR TREE INC (DLTR)
US2567461080 - Common Stock
Taking everything into account, DLTR scores 4 out of 10 in our fundamental rating. DLTR was compared to 41 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 correct valuation and a medium 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.
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 has a Return On Assets of -4.71%. This is amonst the worse of the industry: DLTR underperforms 80.49% of its industry peers.
The Return On Equity of DLTR (-14.44%) is worse than 73.17% of its industry peers.
DLTR has a Return On Invested Capital (7.07%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for DLTR is in line with the industry average of 9.15%.
| 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 82.93% of its industry peers.
DLTR's Operating Margin has declined in the last couple of years.
DLTR has a Gross Margin of 30.78%. This is amongst the best in the industry. DLTR outperforms 85.37% of its industry peers.
In the last couple of years the Gross Margin of DLTR has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DLTR is still creating some value.
DLTR has less shares outstanding than it did 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
An Altman-Z score of 2.62 indicates that DLTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
DLTR has a worse Altman-Z score (2.62) than 65.85% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 7.98, DLTR is in line with its industry, outperforming 41.46% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that DLTR is not too dependend on debt financing.
DLTR's Debt to Equity ratio of 0.36 is in line compared to the rest of the industry. DLTR outperforms 56.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.9
WACC7.88%
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 in line with its industry, outperforming 46.34% of the companies in the same industry.
A Quick Ratio of 0.17 indicates that DLTR may have some problems paying its short term obligations.
The Quick ratio of DLTR (0.17) is worse than 95.12% 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 0.89%.
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.
The Revenue has been growing slightly by 6.04% on average over the past years.
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
DLTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.68% yearly.
Based on estimates for the next years, DLTR will show a small growth in Revenue. The Revenue will grow by 3.88% on average per year.
EPS Next Y-7.76%
EPS Next 2Y1.9%
EPS Next 3Y6.25%
EPS Next 5Y13.68%
Revenue Next Year0.21%
Revenue Next 2Y1.91%
Revenue Next 3Y2.81%
Revenue Next 5Y3.88%
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
With a Price/Earnings ratio of 11.71, the valuation of DLTR can be described as very reasonable.
82.93% of the companies in the same industry are more expensive than DLTR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.20, DLTR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.75, the valuation of DLTR can be described as reasonable.
DLTR's Price/Forward Earnings ratio is rather cheap when compared to the industry. DLTR is cheaper than 85.37% of the companies in the same industry.
DLTR is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 10.75 |
4.2 Price Multiples
73.17% of the companies in the same industry are more expensive than DLTR, based on the Enterprise Value to EBITDA ratio.
DLTR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.97 | ||
| EV/EBITDA | 6.85 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)6.61
EPS Next 2Y1.9%
EPS Next 3Y6.25%
5. Dividend
5.1 Amount
DLTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DOLLAR TREE INC
NASDAQ:DLTR (11/22/2024, 8:00:00 PM)
After market: 66.4 0 (0%)66.4
+0.64 (+0.97%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 10.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)6.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.71% | ||
| ROE | -14.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.03% | ||
| PM (TTM) | N/A | ||
| GM | 30.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)0.89%
EPS 3Y1.68%
EPS 5Y
EPS Q2Q%
EPS Next Y-7.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.65%
Revenue growth 3Y6.26%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y