NasdaqGS:DLTR

Stock Analysis Report

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Executive Summary

Dollar Tree, Inc. operates discount variety retail stores.


Snowflake Analysis

Adequate balance sheet with concerning outlook.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

19.8%

DLTR

8.1%

US Multiline Retail

3.0%

US Market


1 Year Return

-2.8%

DLTR

20.8%

US Multiline Retail

9.9%

US Market

Return vs Industry: DLTR underperformed the US Multiline Retail industry which returned 20.8% over the past year.

Return vs Market: DLTR underperformed the US Market which returned 9.9% over the past year.


Shareholder returns

DLTRIndustryMarket
7 Day19.8%8.1%3.0%
30 Day26.5%15.1%8.2%
90 Day19.6%13.0%0.4%
1 Year-2.8%-2.8%23.4%20.8%12.4%9.9%
3 Year23.4%23.4%76.2%64.8%31.0%22.3%
5 Year26.9%26.9%39.3%21.4%58.1%40.3%

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?

28.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DLTR ($97.87) is trading above our estimate of fair value ($82.91)

Significantly Below Fair Value: DLTR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DLTR is poor value based on its PE Ratio (28.7x) compared to the Multiline Retail industry average (24.7x).

PE vs Market: DLTR is poor value based on its PE Ratio (28.7x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: DLTR is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: DLTR is overvalued based on its PB Ratio (3.6x) compared to the US Multiline Retail industry average (0.6x).


Next Steps

Future Growth

How is Dollar Tree forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLTR's forecast earnings growth (9.4% per year) is above the savings rate (2.2%).

Earnings vs Market: DLTR's earnings (9.4% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: DLTR's revenue (4.4% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: DLTR'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: DLTR's Return on Equity is forecast to be low in 3 years time (15.5%).


Next Steps

Past Performance

How has Dollar Tree performed over the past 5 years?

-17.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLTR has a large one-off loss of $388.8M impacting its May 2 2020 financial results.

Growing Profit Margin: DLTR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DLTR's earnings have declined by -17.5% per year over the past 5 years.

Accelerating Growth: DLTR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DLTR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Multiline Retail industry (-6.6%).


Return on Equity

High ROE: DLTR's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is Dollar Tree's financial position?


Financial Position Analysis

Short Term Liabilities: DLTR's short term assets ($5.2B) exceed its short term liabilities ($4.5B).

Long Term Liabilities: DLTR's short term assets ($5.2B) do not cover its long term liabilities ($9.4B).


Debt to Equity History and Analysis

Debt Level: DLTR's debt to equity ratio (65.5%) is considered high.

Reducing Debt: DLTR's debt to equity ratio has reduced from 408.2% to 65.5% over the past 5 years.

Debt Coverage: DLTR's debt is well covered by operating cash flow (51.8%).

Interest Coverage: DLTR's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Dollar Tree's 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?

5.9yrs

Average management tenure


CEO

Gary Philbin (62yo)

2.75yrs

Tenure

US$10,604,621

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD10.60M) is about average for companies of similar size in the US market ($USD11.60M).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bobby Sasser
Executive Chairman2.75yrsUS$7.13m0.085% $19.8m
Gary Philbin
CEO & Director2.75yrsUS$10.60m0.061% $14.3m
Kevin Wampler
Chief Financial Officer11.5yrsUS$3.22m0.058% $13.5m
William Old
Chief Legal Officer7.42yrsUS$2.47m0.010% $2.4m
Michael Witynski
President of Family Dollar Stores3yrsUS$3.73m0.0089% $2.1m
H. Compton
Co-Founder34.42yrsUS$77.50kno data
Thomas O'Boyle
Enterprise Chief Operating Officer0.50yrno data0.00035% $81.3k
Kathleen Mallas
Senior VP & Principal Accounting Officer12.67yrsUS$451.61kno data
Joshua Jewett
Chief Information Officer4.25yrsno data0.0041% $951.9k
Randy Guiler
Vice President of Investor Relations5.92yrsno datano data

5.9yrs

Average Tenure

56yo

Average Age

Experienced Management: DLTR's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bobby Sasser
Executive Chairman2.75yrsUS$7.13m0.085% $19.8m
Gary Philbin
CEO & Director2.75yrsUS$10.60m0.061% $14.3m
Thomas Whiddon
Independent Director16.5yrsUS$296.26k0.011% $2.6m
Gregory Bridgeford
Lead Director1.25yrsUS$333.59k0.00034% $78.9k
Arnold Barron
Independent Director12.25yrsUS$269.30k0.0072% $1.7m
Thomas Saunders
Independent Director27.42yrsUS$262.90k1.03% $240.2m
Conrad Hall
Independent Director10.42yrsUS$285.00k0.036% $8.4m
Lemuel Lewis
Independent Director12.92yrsUS$275.00k0.010% $2.3m
Carl Zeithaml
Independent Director12.92yrsUS$270.00k0.00034% $78.9k
Stephanie Stahl
Independent Director2.42yrsUS$291.73kno data

11.3yrs

Average Tenure

68yo

Average Age

Experienced Board: DLTR's board of directors are seasoned and experienced ( 11.3 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$23.218b
  • Shares outstanding: 237.23m
  • 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
0IC8LSE (London Stock Exchange)YesCommon StockGBUSDMar 1995
DLTR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1995
DLTRWBAG (Wiener Boerse AG)YesCommon StockATEURMar 1995
DT3ETLX (Eurotlx)YesCommon StockITEURMar 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 provides consumable merchandise, including candy and food, and health and beauty care, as well as everyday consumables, such as household paper and chemicals, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, and other items; and seasonal goods that include Valentine’s Day, Easter, Halloween, and Christmas merchandise. This segment operates 7,505 stores under the Dollar Tree and Dollar Tree Canada brands, as well as 13 distribution centers in the United States and 2 in Canada; and a store support center in Chesapeake, Virginia. The Family Dollar segment operates general merchandise discount retail stores that offer consumable merchandise, which comprise food and beverages, tobacco, health and beauty aids, household chemicals, paper products, hardware and automotive supplies, diapers, batteries, and pet food and supplies; and home products, including housewares, home décor, and giftware, as well as domestics, such as comforters, sheets, and towels. Its stores also provides apparel and accessories merchandise comprising clothing, fashion accessories, and shoes; and seasonal and electronics merchandise that include Valentine’s Day, Easter, Halloween, and Christmas merchandise, as well as personal electronics, which comprise pre-paid cellular phones and services, stationery and school supplies, and toys. This segment operates 7,783 stores under the Family Dollar brand; and 11 distribution centers. The company was founded in 1986 and is headquartered in Chesapeake, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 03:47
End of Day Share Price2020/05/29 00:00
Earnings2020/05/02
Annual Earnings2020/02/01


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.