NasdaqGS:DLTR

Stock Analysis Report

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Market Cap

US$23.5b

Last Updated

2021/06/24 05:31 UTC

Data Sources

Company Financials +

Executive Summary

Dollar Tree, Inc. operates discount variety retail stores. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


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

Stable Share Price: DLTR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DLTR's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

DLTR

1.7%

US Multiline Retail

0.5%

US Market


1 Year Return

9.0%

DLTR

56.7%

US Multiline Retail

42.6%

US Market

Return vs Industry: DLTR underperformed the US Multiline Retail industry which returned 56.7% over the past year.

Return vs Market: DLTR underperformed the US Market which returned 42.6% over the past year.


Shareholder returns

DLTRIndustryMarket
7 Day0.8%1.7%0.5%
30 Day-5.1%4.3%1.9%
90 Day-11.3%13.1%7.9%
1 Year9.0%9.0%58.2%56.7%44.9%42.6%
3 Year19.4%19.4%105.9%94.2%64.4%54.1%
5 Year7.7%7.7%142.1%118.9%128.3%102.7%

Long-Term 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

Valuation

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

17.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DLTR ($101.49) is trading below our estimate of fair value ($123.72)

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


Price To Earnings Ratio

PE vs Industry: DLTR is good value based on its PE Ratio (16.3x) compared to the US Multiline Retail industry average (19.2x).

PE vs Market: DLTR is good value based on its PE Ratio (16.3x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: DLTR is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: DLTR's PB Ratio (3.2x) is in line with the US Multiline Retail industry average.


Future Growth

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

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLTR's forecast earnings growth (8.2% per year) is above the savings rate (2%).

Earnings vs Market: DLTR's earnings (8.2% per year) are forecast to grow slower than the US market (15.7% per year).

High Growth Earnings: DLTR's earnings are forecast to grow, but not significantly.

Revenue vs Market: DLTR's revenue (5.2% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: DLTR's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DLTR's Return on Equity is forecast to be low in 3 years time (18.5%).


Past Performance

How has Dollar Tree performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLTR has high quality earnings.

Growing Profit Margin: DLTR's current net profit margins (5.7%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: DLTR's earnings have declined by 6% per year over the past 5 years.

Accelerating Growth: DLTR's earnings growth over the past year (82%) exceeds its 5-year average (-6% per year).

Earnings vs Industry: DLTR earnings growth over the past year (82%) underperformed the Multiline Retail industry 109%.


Return on Equity

High ROE: DLTR's Return on Equity (19.8%) is considered low.


Financial Health

How is Dollar Tree's financial position?


Financial Position Analysis

Short Term Liabilities: DLTR's short term assets ($5.3B) exceed its short term liabilities ($3.9B).

Long Term Liabilities: DLTR's short term assets ($5.3B) do not cover its long term liabilities ($9.7B).


Debt to Equity History and Analysis

Debt Level: DLTR's debt to equity ratio (43.6%) is considered high.

Reducing Debt: DLTR's debt to equity ratio has reduced from 156.8% to 43.6% over the past 5 years.

Debt Coverage: DLTR's debt is well covered by operating cash flow (71.7%).

Interest Coverage: DLTR's interest payments on its debt are well covered by EBIT (16.2x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if DLTR'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 DLTR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.9yrs

Average management tenure


CEO

Mike Witynski (57 yo)

0.92

Tenure

US$10,767,887

Compensation

Mr. Michael A. Witynski, also known as Mike, serves as President and Chief Executive Officer at Dollar Tree, Inc. since July 2020 and serves as its Director since September 23, 2020. He served as President...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD10.77M) is about average for companies of similar size in the US market ($USD11.28M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: DLTR's management team is seasoned and experienced (6.9 years average tenure).


Board Members

Experienced Board: DLTR's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DLTR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Dollar Tree, Inc.
  • Ticker: DLTR
  • Exchange: NasdaqGS
  • Founded: 1986
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Market Cap: US$23.541b
  • Shares outstanding: 231.95m
  • Website: https://www.dollartree.com

Number of Employees


Location

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

Listings


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 Analysis2021/06/24 05:31
End of Day Share Price2021/06/23 00:00
Earnings2021/05/01
Annual Earnings2021/01/30


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.