DB:DT3

Stock Analysis Report

Executive Summary

Dollar Tree, Inc. operates discount variety retail stores.

Snowflake

Fundamentals

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Dollar Tree's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

DT3

2.6%

DE Multiline Retail

2.4%

DE Market


1 Year Return

46.2%

DT3

2.7%

DE Multiline Retail

4.9%

DE Market

Return vs Industry: DT3 exceeded the German Multiline Retail industry which returned 2.7% over the past year.

Return vs Market: DT3 exceeded the German Market which returned 4.9% over the past year.


Shareholder returns

DT3IndustryMarket
7 Day1.0%2.6%2.4%
30 Day4.4%6.2%2.3%
90 Day11.7%11.8%2.7%
1 Year46.2%46.2%8.1%2.7%8.2%4.9%
3 Year52.6%52.6%21.9%4.5%18.3%8.0%
5 Year130.9%130.9%9.6%-13.7%44.2%24.6%

Price Volatility Vs. Market

How volatile is Dollar Tree's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dollar Tree undervalued compared to its fair value and its price relative to the market?

13.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DT3 (€106.16) is trading below our estimate of fair value (€122.85)

Significantly Below Fair Value: DT3 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DT3 is unprofitable, so we can't compare its PE Ratio to the Multiline Retail industry average.

PE vs Market: DT3 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DT3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DT3 is overvalued based on its PB Ratio (4.7x) compared to the XE Multiline Retail industry average (2.3x).


Next Steps

Future Growth

How is Dollar Tree forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

15.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DT3 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: DT3 is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: DT3's loss is forecast to worsen by 0% next year.

Revenue vs Market: DT3's revenue (4.4% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: DT3's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DT3's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has Dollar Tree performed over the past 5 years?

-14.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DT3 is unprofitable, and losses have increased over the past 5 years at a rate of -14% per year.

Accelerating Growth: Unable to compare DT3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DT3 is unprofitable, making it difficult to compare its past year earnings growth to the Multiline Retail industry (6.5%).


Return on Equity

High ROE: DT3 has a negative Return on Equity (-26.89%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: DT3 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: DT3 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Dollar Tree's financial position?


Financial Position Analysis

Short Term Liabilities: DT3's short term assets ($4.3B) exceeds its short term liabilities ($4.1B)

Long Term Liabilities: DT3's short term assets (4.3B) do not cover its long term liabilities (9.5B)


Debt to Equity History and Analysis

Debt Level: DT3's debt to equity ratio (72.8%) is considered high

Reducing Debt: DT3's debt to equity ratio has increased from 52.2% to 72.8% over the past 5 years.

Debt Coverage: DT3's debt is well covered by operating cash flow (43.1%).

Interest Coverage: DT3 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: DT3 has a high level of physical assets or inventory.

Debt Coverage by Assets: DT3's debt is covered by short term assets (assets are 1.016910x debt).


Next Steps

Dividend

What is Dollar Tree's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage3.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate DT3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DT3's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if DT3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DT3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DT3's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Dollar Tree's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Gary Philbin (62yo)

2.1yrs

Tenure

US$9,398,842

Compensation

Mr. Gary M. Philbin has been the Chief Executive Officer, President and Director at Dollar Tree, Inc. since September 18, 2017 and served as its Enterprise President since January 2017. Mr. Philbin served  ...


CEO Compensation Analysis

Compensation vs. Market: Gary has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Gary's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

5.3yrs

Average Tenure

56.5yo

Average Age

Experienced Management: DT3's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

10.7yrs

Average Tenure

68yo

Average Age

Experienced Board: DT3's board of directors are seasoned and experienced ( 10.7 years average tenure).


Insider Trading

Insider Buying: DT3 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$105,16111 Oct 19
Thomas Saunders
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$105.16
SellUS$73,93210 Oct 19
Thomas O'Boyle
EntityIndividual
Shares719
Max PriceUS$102.83
SellUS$7,392,07807 Oct 19
Bobby Sasser
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares70,000
Max PriceUS$105.60
SellUS$105,67604 Oct 19
Thomas Saunders
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$105.68
SellUS$826,44224 Sep 19
Thomas Saunders
EntityIndividual
Role
Member of the Board of Directors
Director
Shares8,000
Max PriceUS$103.98
SellUS$271,53505 Sep 19
Gary Maxwell
EntityIndividual
Shares2,800
Max PriceUS$96.98
SellUS$99,79812 Jul 19
Thomas Saunders
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$99.80
SellUS$1,425,59625 Jun 19
Thomas Saunders
EntityIndividual
Role
Member of the Board of Directors
Director
Shares14,530
Max PriceUS$99.01
SellUS$1,124,42321 Jun 19
Thomas Saunders
EntityIndividual
Role
Member of the Board of Directors
Director
Shares11,470
Max PriceUS$98.03
SellUS$2,003,41318 Jun 19
Kevin Wampler
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares20,470
Max PriceUS$97.87
SellUS$827,79814 Jun 19
David Jacobs
EntityIndividual
Shares8,672
Max PriceUS$95.46
SellUS$629,32211 Jun 19
Michael Witynski
EntityIndividual
Role
Senior Key Executive
President & COO of Dollar Tree Stores Inc
Shares6,858
Max PriceUS$91.76
SellUS$827,95306 Jun 19
Duncan Mac Naughton
EntityIndividual
Role
Senior Key Executive
President of the Family Dollar Stores Inc
Shares9,157
Max PriceUS$90.42
SellUS$329,56504 Jun 19
Joshua Jewett
EntityIndividual
Role
Chief Information Officer
Chief Information Officer
Shares3,632
Max PriceUS$90.74
SellUS$377,97522 Mar 19
Robert Rudman
EntityIndividual
Shares4,210
Max PriceUS$89.78
SellUS$1,044,39121 Mar 19
Arnold Barron
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares11,667
Max PriceUS$89.52
BuyUS$88,30215 Mar 19
Lemuel Lewis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$88.30
SellUS$311,14713 Mar 19
Joshua Jewett
EntityIndividual
Role
Chief Information Officer
Chief Information Officer
Shares3,430
Max PriceUS$90.71
SellUS$267,36111 Mar 19
Gary Maxwell
EntityIndividual
Shares2,900
Max PriceUS$92.19
SellUS$584,17711 Mar 19
Michael Witynski
EntityIndividual
Role
Senior Key Executive
President & COO of Dollar Tree Stores Inc
Shares6,380
Max PriceUS$91.56
SellUS$1,218,36311 Mar 19
David Jacobs
EntityIndividual
Shares13,310
Max PriceUS$91.54
SellUS$602,00911 Mar 19
William Old
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer
Shares6,580
Max PriceUS$91.49

Ownership Breakdown


Management Team

  • Bob Sasser (67yo)

    Executive Chairman

    • Tenure: 2.1yrs
    • Compensation: US$10.99m
  • H. Compton (76yo)

    Co-Founder

    • Tenure: 33.8yrs
    • Compensation: US$77.50k
  • Gary Philbin (62yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$9.40m
  • Kevin Wampler (56yo)

    Chief Financial Officer

    • Tenure: 10.8yrs
    • Compensation: US$3.08m
  • Joshua Jewett (50yo)

    Chief Information Officer

    • Tenure: 3.6yrs
  • Duncan Mac Naughton (57yo)

    President of the Family Dollar Stores Inc

    • Tenure: 2.8yrs
    • Compensation: US$3.78m
  • Randy Guiler (54yo)

    Vice President of Investor Relations

    • Tenure: 5.3yrs
  • Katie Mallas (49yo)

    Senior VP & Principal Accounting Officer

    • Tenure: 12yrs
    • Compensation: US$451.61k
  • Will Old (65yo)

    Chief Legal Officer

    • Tenure: 6.8yrs
  • Mike Witynski (56yo)

    President & COO of Dollar Tree Stores Inc

    • Tenure: 2.3yrs
    • Compensation: US$3.07m

Board Members

  • Bob Sasser (67yo)

    Executive Chairman

    • Tenure: 2.1yrs
    • Compensation: US$10.99m
  • Tom Whiddon (66yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$285.00k
  • Greg Bridgeford (64yo)

    Lead Director

    • Tenure: 0.6yrs
    • Compensation: US$270.00k
  • Gary Philbin (62yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$9.40m
  • Arnold Barron (71yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$285.00k
  • Tom Saunders (82yo)

    Director

    • Tenure: 26.8yrs
    • Compensation: US$310.00k
  • Conrad Hall (75yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$286.03k
  • Lem Lewis (72yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$275.00k
  • Carl Zeithaml (69yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$270.00k
  • Stephanie Stahl (52yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$302.41k

Company Information

Dollar Tree, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dollar Tree, Inc.
  • Ticker: DT3
  • Exchange: DB
  • Founded: 1986
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Market Cap: US$27.612b
  • Listing Market Cap: US$24.784b
  • Shares outstanding: 236.62m
  • Website: https://www.dollartree.com

Number of Employees


Location

  • Dollar Tree, Inc.
  • 500 Volvo Parkway
  • Chesapeake
  • Virginia
  • 23320
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DT3DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1995
DLTRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1995
DLTR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1995
DLTRWBAG (Wiener Boerse AG)YesCommon StockATEURMar 1995
DLTR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.5 COM USD0.01BRBRLMay 2019

Biography

Dollar Tree, Inc. operates discount variety retail stores. It operates through two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $1.00. It provid ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 20:42
End of Day Share Price2019/10/22 00:00
Earnings2019/08/03
Annual Earnings2019/02/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.