DOLLAR TREE INC (1DLTR.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1DLTR - US2567461080 - Common Stock
103.72 EUR
+18.86 (+22.22%)
Taking everything into account, 1DLTR scores 4 out of 10 in our fundamental rating. 1DLTR was compared to 24 industry peers in the Consumer Staples Distribution & Retail industry. 1DLTR has an average financial health and profitability rating. 1DLTR does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year 1DLTR was profitable.
- In the past year 1DLTR had a positive cash flow from operations.
- In multiple years 1DLTR reported negative net income over the last 5 years.
- In the past 5 years 1DLTR always reported a positive cash flow from operatings.
1.2 Ratios
- 1DLTR's Return On Assets of -21.38% is on the low side compared to the rest of the industry. 1DLTR is outperformed by 84.00% of its industry peers.
- With a Return On Equity value of -84.27%, 1DLTR is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
- 1DLTR has a Return On Invested Capital of 11.62%. This is in the better half of the industry: 1DLTR outperforms 76.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1DLTR is in line with the industry average of 9.20%.
- The 3 year average ROIC (10.12%) for 1DLTR is below the current ROIC(11.62%), indicating increased profibility in the last year.
| 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
- The Operating Margin of 1DLTR (11.41%) is better than 100.00% of its industry peers.
- 1DLTR's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 45.09%, 1DLTR belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
- 1DLTR'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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1DLTR is still creating some value.
- Compared to 1 year ago, 1DLTR has less shares outstanding
- Compared to 5 years ago, 1DLTR has less shares outstanding
- 1DLTR has a worse debt/assets ratio than last year.
2.2 Solvency
- 1DLTR has an Altman-Z score of 3.18. This indicates that 1DLTR is financially healthy and has little risk of bankruptcy at the moment.
- 1DLTR has a Altman-Z score of 3.18. This is comparable to the rest of the industry: 1DLTR outperforms 60.00% of its industry peers.
- 1DLTR has a debt to FCF ratio of 1.90. This is a very positive value and a sign of high solvency as it would only need 1.90 years to pay back of all of its debts.
- 1DLTR has a better Debt to FCF ratio (1.90) than 96.00% of its industry peers.
- 1DLTR has a Debt/Equity ratio of 0.88. This is a neutral value indicating 1DLTR is somewhat dependend on debt financing.
- 1DLTR's Debt to Equity ratio of 0.88 is in line compared to the rest of the industry. 1DLTR outperforms 60.00% of its industry peers.
- Even though the debt/equity ratio score it not favorable for 1DLTR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.45
WACC8%
2.3 Liquidity
- A Current Ratio of 0.96 indicates that 1DLTR may have some problems paying its short term obligations.
- 1DLTR has a better Current ratio (0.96) than 64.00% of its industry peers.
- 1DLTR has a Quick Ratio of 0.96. This is a bad value and indicates that 1DLTR 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, 1DLTR is doing worse than 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
- The earnings per share for 1DLTR have decreased strongly by -10.75% in the last year.
- Measured over the past 5 years, 1DLTR shows a small growth in Earnings Per Share. The EPS has been growing by 2.24% on average per year.
- 1DLTR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -55.28%.
- The Revenue has been decreasing by -5.73% on average over the past years.
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
- The Earnings Per Share is expected to grow by 8.27% on average over the next years. This is quite good.
- 1DLTR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.26% yearly.
EPS Next Y5.46%
EPS Next 2Y10.75%
EPS Next 3Y10.63%
EPS Next 5Y8.27%
Revenue Next Year-36.96%
Revenue Next 2Y-18.27%
Revenue Next 3Y-10.93%
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 23.57, which indicates a rather expensive current valuation of 1DLTR.
- 60.00% of the companies in the same industry are cheaper than 1DLTR, based on the Price/Earnings ratio.
- 1DLTR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 18.58, the valuation of 1DLTR can be described as rather expensive.
- 1DLTR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1DLTR is more expensive than 60.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1DLTR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.57 | ||
| Fwd PE | 18.58 |
4.2 Price Multiples
- 60.00% of the companies in the same industry are cheaper than 1DLTR, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1DLTR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.01 | ||
| EV/EBITDA | 13.96 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1DLTR does not grow enough to justify the current Price/Earnings ratio.
- 1DLTR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.32
PEG (5Y)10.5
EPS Next 2Y10.75%
EPS Next 3Y10.63%
5. Dividend
5.1 Amount
- 1DLTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DOLLAR TREE INC / 1DLTR.MI FAQ
What is the ChartMill fundamental rating of DOLLAR TREE INC (1DLTR.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1DLTR.MI.
What is the valuation status of DOLLAR TREE INC (1DLTR.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to DOLLAR TREE INC (1DLTR.MI). This can be considered as Overvalued.
Can you provide the profitability details for DOLLAR TREE INC?
DOLLAR TREE INC (1DLTR.MI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for 1DLTR stock?
The Price/Earnings (PE) ratio for DOLLAR TREE INC (1DLTR.MI) is 23.57 and the Price/Book (PB) ratio is 6.97.
What is the earnings growth outlook for DOLLAR TREE INC?
The Earnings per Share (EPS) of DOLLAR TREE INC (1DLTR.MI) is expected to grow by 5.46% in the next year.