DOLLAR TREE INC (DLTR) Stock Fundamental Analysis
USA - NASDAQ:DLTR - US2567461080 - Common Stock
104.75 USD
+1.6 (+1.55%)
104.17 USD
-0.58 (-0.55%)
DLTR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
In the past year DLTR was profitable.
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.
Each year in the past 5 years DLTR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DLTR (-21.90%) is worse than 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.
DLTR has a Return On Invested Capital of 11.76%. This is amongst the best in the industry. DLTR outperforms 82.05% of its industry peers.
DLTR had an Average Return On Invested Capital over the past 3 years of 10.12%. This is in line with the industry average of 8.72%.
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
With an excellent Operating Margin value of 9.44%, DLTR belongs to the best of the industry, outperforming 94.87% of the companies in the same industry.
DLTR's Operating Margin has improved in the last couple of years.
DLTR has a Gross Margin of 37.52%. This is amongst the best in the industry. DLTR outperforms 82.05% of its industry peers.
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.
The number of shares outstanding for DLTR has been reduced compared to 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
DLTR has an Altman-Z score of 3.35. This indicates that DLTR is financially healthy and has little risk of bankruptcy at the moment.
DLTR has a worse Altman-Z score (3.35) than 61.54% of its industry peers.
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.
DLTR's Debt to FCF ratio of 1.35 is amongst the best of the industry. DLTR outperforms 87.18% of its industry peers.
DLTR has a Debt/Equity ratio of 0.76. This is a neutral value indicating DLTR is somewhat dependend on debt financing.
DLTR's Debt to Equity ratio of 0.76 is in line compared to the rest of the industry. DLTR outperforms 43.59% of its industry peers.
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 | 0.76 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.48
WACC7.97%
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.
With a Current ratio value of 1.04, DLTR perfoms like the industry average, outperforming 43.59% of the companies in the same industry.
DLTR has a Quick Ratio of 1.04. 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 0.27, DLTR is doing worse than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
DLTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.76%.
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 -45.82%.
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
The Earnings Per Share is expected to grow by 8.27% on average over the next years. This is quite good.
Based on estimates for the next years, DLTR will show a decrease in Revenue. The Revenue will decrease by -5.26% on average per year.
EPS Next Y5.45%
EPS Next 2Y10.77%
EPS Next 3Y11.11%
EPS Next 5Y8.27%
Revenue Next Year-37.14%
Revenue Next 2Y-18.47%
Revenue Next 3Y-11.13%
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
The Price/Earnings ratio is 20.70, which indicates a rather expensive current valuation of DLTR.
Compared to the rest of the industry, the Price/Earnings ratio of DLTR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.89, DLTR is valued a bit cheaper.
DLTR is valuated correctly with a Price/Forward Earnings ratio of 16.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DLTR is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.59. DLTR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 16.02 |
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 | 10.56 | ||
| EV/EBITDA | 11.9 |
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.
The decent profitability rating of DLTR may justify a higher PE ratio.
PEG (NY)3.8
PEG (5Y)9.22
EPS Next 2Y10.77%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
No dividends for DLTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
104.75
+1.6 (+1.55%)
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 Change7.98%
Ins Owners0.11%
Ins Owner Change-1.28%
Market Cap21.37B
Revenue(TTM)16.78B
Net Income(TTM)-2.93B
Analysts68.82
Price Target111.14 (6.1%)
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)-3.88%
PT rev (3m)7.83%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)-17.84%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)2.33%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 16.02 | ||
| P/S | 1.27 | ||
| P/FCF | 10.56 | ||
| P/OCF | 7.52 | ||
| P/B | 5.93 | ||
| P/tB | 6.71 | ||
| EV/EBITDA | 11.9 |
EPS(TTM)5.06
EY4.83%
EPS(NY)6.54
Fwd EY6.24%
FCF(TTM)9.92
FCFY9.47%
OCF(TTM)13.94
OCFY13.3%
SpS82.26
BVpS17.67
TBVpS15.6
PEG (NY)3.8
PEG (5Y)9.22
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 | 3.35 |
F-Score5
WACC7.97%
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 Y5.45%
EPS Next 2Y10.77%
EPS Next 3Y11.11%
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-37.14%
Revenue Next 2Y-18.47%
Revenue Next 3Y-11.13%
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 3Y17.19%
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 5 / 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 6 / 10.