DOLLAR TREE INC (DLTR) Stock Fundamental Analysis
NASDAQ:DLTR - Nasdaq - US2567461080 - Common Stock - Currency: USD
Overall DLTR gets a fundamental rating of 4 out of 10. We evaluated DLTR against 41 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.
Each year in the past 5 years DLTR had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -4.47%, DLTR is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -13.67%, DLTR is doing worse than 70.73% of the companies in the same industry.
The Return On Invested Capital of DLTR (7.11%) is better than 63.41% of its industry peers.
DLTR had an Average Return On Invested Capital over the past 3 years of 10.12%. This is above the industry average of 8.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.47% | ||
| ROE | -13.67% | ||
| ROIC | 7.11% |
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 (5.09%) than 90.24% of its industry peers.
In the last couple of years the Operating Margin of DLTR has grown nicely.
DLTR has a better Gross Margin (31.06%) than 82.93% of its industry peers.
In the last couple of years the Gross Margin of DLTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.09% | ||
| PM (TTM) | N/A | ||
| GM | 31.06% |
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) below the Cost of Capital (WACC), DLTR is destroying 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.
The debt/assets ratio for DLTR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.74 indicates that DLTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DLTR (2.74) is worse than 63.41% of its industry peers.
DLTR has a debt to FCF ratio of 4.02. This is a neutral value as DLTR would need 4.02 years to pay back of all of its debts.
The Debt to FCF ratio of DLTR (4.02) is better than 63.41% of its industry peers.
DLTR has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
DLTR's Debt to Equity ratio of 0.32 is fine compared to the rest of the industry. DLTR outperforms 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.5
WACC14.1%
2.3 Liquidity
A Current Ratio of 1.03 indicates that DLTR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.03, DLTR perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
DLTR has a Quick Ratio of 1.03. 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 0.17, DLTR is doing worse than 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The earnings per share for DLTR have decreased strongly by -10.42% in the last year.
The Earnings Per Share has been growing slightly by 2.24% on average over the past years.
Looking at the last year, DLTR shows a small growth in Revenue. The Revenue has grown by 4.75% in the last year.
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)-10.42%
EPS 3Y-2.78%
EPS 5Y2.24%
EPS Q2Q%-17.25%
Revenue 1Y (TTM)4.75%
Revenue growth 3Y-12.59%
Revenue growth 5Y-5.73%
Sales Q2Q%-4.33%
3.2 Future
Based on estimates for the next years, DLTR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.24% on average per year.
DLTR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.41% yearly.
EPS Next Y-1.42%
EPS Next 2Y6.49%
EPS Next 3Y7.91%
EPS Next 5Y8.24%
Revenue Next Year-38.53%
Revenue Next 2Y-19.41%
Revenue Next 3Y-11.86%
Revenue Next 5Y-5.41%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.00, DLTR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of DLTR indicates a somewhat cheap valuation: DLTR is cheaper than 70.73% of the companies listed in the same industry.
DLTR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 17.25, which indicates a rather expensive current valuation of DLTR.
75.61% of the companies in the same industry are more expensive than DLTR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.43. DLTR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 17.25 |
4.2 Price Multiples
DLTR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DLTR is cheaper than 68.29% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DLTR indicates a somewhat cheap valuation: DLTR is cheaper than 60.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.83 | ||
| EV/EBITDA | 8.37 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)7.57
EPS Next 2Y6.49%
EPS Next 3Y7.91%
5. Dividend
5.1 Amount
DLTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
90.62
+4.01 (+4.63%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners103.86%
Inst Owner Change2.1%
Ins Owners0.08%
Ins Owner Change7.72%
Market Cap19.49B
Analysts71.18
Price Target85.89 (-5.22%)
Short Float %7.21%
Short Ratio2.71
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)1
Avg EPS beat(2)-17.04%
Min EPS beat(2)-36.9%
Max EPS beat(2)2.81%
EPS beat(4)1
Avg EPS beat(4)-10.34%
Min EPS beat(4)-36.9%
Max EPS beat(4)2.81%
EPS beat(8)2
Avg EPS beat(8)-5.66%
EPS beat(12)4
Avg EPS beat(12)-1.64%
EPS beat(16)6
Avg EPS beat(16)0.63%
Revenue beat(2)0
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-3.39%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-3.39%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-1.61%
Revenue beat(12)1
Avg Revenue beat(12)-1.5%
Revenue beat(16)1
Avg Revenue beat(16)-1.67%
PT rev (1m)1.84%
PT rev (3m)0.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.12%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-15.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-40.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 17.25 | ||
| P/S | 0.62 | ||
| P/FCF | 22.83 | ||
| P/OCF | 6.4 | ||
| P/B | 2.55 | ||
| P/tB | 4.26 | ||
| EV/EBITDA | 8.37 |
EPS(TTM)5.33
EY5.88%
EPS(NY)5.25
Fwd EY5.8%
FCF(TTM)3.97
FCFY4.38%
OCF(TTM)14.15
OCFY15.61%
SpS145.15
BVpS35.5
TBVpS21.26
PEG (NY)N/A
PEG (5Y)7.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.47% | ||
| ROE | -13.67% | ||
| ROCE | 9.39% | ||
| ROIC | 7.11% | ||
| ROICexc | 7.42% | ||
| ROICexgc | 9.15% | ||
| OM | 5.09% | ||
| PM (TTM) | N/A | ||
| GM | 31.06% | ||
| FCFM | 2.73% |
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%
ROICexcg growth 3Y6.23%
ROICexcg 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 Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.02 | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 227.38% | ||
| Cap/Sales | 7.01% | ||
| Interest Coverage | 11.81 | ||
| Cash Conversion | 119.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 2.74 |
F-Score5
WACC14.1%
ROIC/WACC0.5
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)-10.42%
EPS 3Y-2.78%
EPS 5Y2.24%
EPS Q2Q%-17.25%
EPS Next Y-1.42%
EPS Next 2Y6.49%
EPS Next 3Y7.91%
EPS Next 5Y8.24%
Revenue 1Y (TTM)4.75%
Revenue growth 3Y-12.59%
Revenue growth 5Y-5.73%
Sales Q2Q%-4.33%
Revenue Next Year-38.53%
Revenue Next 2Y-19.41%
Revenue Next 3Y-11.86%
Revenue Next 5Y-5.41%
EBIT growth 1Y-2.35%
EBIT growth 3Y-4.34%
EBIT growth 5Y-0.01%
EBIT Next Year41.38%
EBIT Next 3Y17.58%
EBIT Next 5Y12.22%
FCF growth 1Y29.33%
FCF growth 3Y56.35%
FCF growth 5Y13.4%
OCF growth 1Y31.72%
OCF growth 3Y25.98%
OCF growth 5Y8.89%