Taking everything into account, DLTR scores 4 out of 10 in our fundamental rating. DLTR was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. DLTR has only an average score on both its financial health and profitability. DLTR has a expensive valuation and it also scores bad on growth.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

DLTR had positive earnings in the past year.
DLTR had a positive operating cash flow in the past year.
In multiple years DLTR reported negative net income over the last 5 years.
In the past 5 years DLTR always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of -21.38%, DLTR is doing worse than 89.47% of the companies in the same industry.
Looking at the Return On Equity, with a value of -84.27%, DLTR is doing worse than 86.84% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.62%, DLTR is doing good in the industry, outperforming 78.95% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DLTR is significantly below the industry average of 28.30%.
The last Return On Invested Capital (11.62%) for DLTR is above the 3 year average (10.12%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	-21.38%
ROE	-84.27%
ROIC	11.62%

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

DLTR has a better Operating Margin (11.41%) than 92.11% of its industry peers.
In the last couple of years the Operating Margin of DLTR has grown nicely.
DLTR has a Gross Margin of 45.09%. This is amongst the best in the industry. DLTR outperforms 92.11% of its industry peers.
DLTR's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	11.41%
PM (TTM)	N/A
GM	45.09%

OM growth 3Y9.44%

OM growth 5Y6.07%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y6.8%

GM growth 5Y3.73%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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
Compared to 1 year ago, DLTR has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.24 indicates that DLTR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.24, DLTR is doing worse than 60.53% of the companies in the same industry.
The Debt to FCF ratio of DLTR is 1.90, which is an excellent value as it means it would take DLTR, only 1.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.90, DLTR belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
A Debt/Equity ratio of 0.88 indicates that DLTR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.88, DLTR is not doing good in the industry: 60.53% of the companies in the same industry are doing better.
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	0.88
Debt/FCF	1.9
Altman-Z	3.24

ROIC/WACC1.42

WACC8.18%

2.3 Liquidity

A Current Ratio of 0.96 indicates that DLTR may have some problems paying its short term obligations.
DLTR has a Current ratio of 0.96. This is in the lower half of the industry: DLTR underperforms 73.68% of its industry peers.
DLTR has a Quick Ratio of 0.96. This is a bad value and indicates that DLTR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.22, DLTR is doing worse than 86.84% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.96
Quick Ratio	0.22

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

DLTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.75%.
DLTR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.24% yearly.
DLTR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -55.28%.
Measured over the past years, DLTR shows a decrease in Revenue. The Revenue has been decreasing by -5.73% on average per year.

EPS 1Y (TTM)-10.75%

EPS 3Y-2.78%

EPS 5Y2.24%

EPS Q2Q%8.04%

Revenue 1Y (TTM)-55.28%

Revenue growth 3Y-12.59%

Revenue growth 5Y-5.73%

Sales Q2Q%-37.22%

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 10.76% yearly.
Based on estimates for the next years, DLTR will show a decrease in Revenue. The Revenue will decrease by -4.49% on average per year.

EPS Next Y9.52%

EPS Next 2Y12.98%

EPS Next 3Y12.49%

EPS Next 5Y10.76%

Revenue Next Year-36.55%

Revenue Next 2Y-17.97%

Revenue Next 3Y-10.74%

Revenue Next 5Y-4.49%

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 accelerating: in the next years the growth will be better than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 25.03, the valuation of DLTR can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as DLTR.
The average S&P500 Price/Earnings ratio is at 27.21. DLTR is around the same levels.
A Price/Forward Earnings ratio of 18.95 indicates a rather expensive valuation of DLTR.
DLTR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of DLTR to the average of the S&P500 Index (24.26), we can say DLTR is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	25.03
Fwd PE	18.95

4.2 Price Multiples

DLTR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DLTR is more expensive than 60.53% of the companies in the same industry.
73.68% 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	15.93
EV/EBITDA	14.53

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.
A more expensive valuation may be justified as DLTR's earnings are expected to grow with 12.49% in the coming years.