DOLLAR TREE INC (DLTR) Stock Fundamental Analysis
USA - NASDAQ:DLTR - US2567461080 - Common Stock
103.15 USD
-3.03 (-2.85%)
103.15 USD
0 (0%)
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. Both the profitability and the financial health of DLTR get a neutral evaluation. Nothing too spectacular is happening here. 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.
DLTR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: DLTR reported negative net income in multiple years.
DLTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DLTR (-21.90%) is worse than 84.62% of its industry peers.
DLTR's Return On Equity of -81.30% is on the low side compared to the rest of the industry. DLTR is outperformed by 87.18% of its industry peers.
DLTR has a better Return On Invested Capital (11.76%) than 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.
In the last couple of years the Operating Margin of DLTR has grown nicely.
Looking at the Gross Margin, with a value of 37.52%, DLTR belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
DLTR's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DLTR is still creating some value.
Compared to 1 year ago, DLTR has less shares outstanding
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 3.37. This indicates that DLTR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.37, DLTR is doing worse than 61.54% of the companies in the same industry.
DLTR has a debt to FCF ratio of 1.35. This is a very positive value and a sign of high solvency as it would only need 1.35 years to pay back of all of its debts.
The Debt to FCF ratio of DLTR (1.35) is better than 84.62% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that DLTR is somewhat dependend on debt financing.
DLTR has a Debt to Equity ratio of 0.76. This is comparable to the rest of the industry: DLTR outperforms 43.59% of its industry peers.
Even though the debt/equity ratio score it not favorable for DLTR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 3.37 |
ROIC/WACC1.49
WACC7.91%
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 41.03% of the companies in the same industry.
A Quick Ratio of 0.27 indicates that DLTR may have some problems paying its short term obligations.
The Quick ratio of DLTR (0.27) is worse than 76.92% of its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 2.24% on average over the past years.
DLTR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -45.82%.
The Revenue has been decreasing by -5.73% on average over the past years.
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
DLTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.27% yearly.
The Revenue is expected to decrease by -5.26% on average over the next years.
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.39, DLTR is valued on the expensive side.
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 25.91, DLTR is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.77, the valuation of DLTR can be described as correct.
DLTR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, DLTR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
DLTR's Enterprise Value to EBITDA ratio is in line with the industry average.
82.05% 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 | 10.4 | ||
| EV/EBITDA | 12.05 |
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.
DLTR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.74
PEG (5Y)9.08
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 |
103.15
-3.03 (-2.85%)
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 Change1.22%
Ins Owners0.11%
Ins Owner Change-0.41%
Market Cap21.04B
Revenue(TTM)16.78B
Net Income(TTM)-2.93B
Analysts68.82
Price Target111.14 (7.75%)
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)-0.62%
EPS NQ rev (3m)-17.63%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)2.33%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 15.77 | ||
| P/S | 1.25 | ||
| P/FCF | 10.4 | ||
| P/OCF | 7.4 | ||
| P/B | 5.84 | ||
| P/tB | 6.61 | ||
| EV/EBITDA | 12.05 |
EPS(TTM)5.06
EY4.91%
EPS(NY)6.54
Fwd EY6.34%
FCF(TTM)9.92
FCFY9.62%
OCF(TTM)13.94
OCFY13.51%
SpS82.26
BVpS17.67
TBVpS15.6
PEG (NY)3.74
PEG (5Y)9.08
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 | 3.37 |
F-Score5
WACC7.91%
ROIC/WACC1.49
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.