Dollar Tree, Inc.
Dollar Tree, Inc. Fundamental Analysis
Dollar Tree, Inc. (DLTR) shows moderate financial fundamentals with a PE ratio of -9.16, profit margin of -15.40%, and ROE of -78.10%. The company generates $19.0B in annual revenue with moderate year-over-year growth of 4.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -63.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DLTR's fundamental strength across five key dimensions:
Efficiency Score
WeakDLTR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDLTR trades at attractive valuation levels.
Growth Score
WeakDLTR faces weak or negative growth trends.
Financial Health Score
WeakDLTR carries high financial risk with limited liquidity.
Profitability Score
WeakDLTR struggles to sustain strong margins.
Key Financial Metrics
Is DLTR Expensive or Cheap?
P/E Ratio
DLTR trades at -9.16 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DLTR's PEG of -11.30 indicates potential undervaluation.
Price to Book
The market values Dollar Tree, Inc. at 7.72 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.77 times EBITDA. This signals the market has high growth expectations.
How Well Does DLTR Make Money?
Net Profit Margin
For every $100 in sales, Dollar Tree, Inc. keeps $-15.40 as profit after all expenses.
Operating Margin
Core operations generate 7.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-78.10 in profit for every $100 of shareholder equity.
ROA
Dollar Tree, Inc. generates $-21.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dollar Tree, Inc. produces operating cash flow of $2.38B, showing steady but balanced cash generation.
Free Cash Flow
Dollar Tree, Inc. produces free cash flow of $1.61B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.92 in free cash annually.
FCF Yield
DLTR converts 6.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-9.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-11.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.78
vs 25 benchmark
ROA
Return on assets percentage
-0.21
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How DLTR Stacks Against Its Sector Peers
| Metric | DLTR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -9.16 | 23.23 | Better (Cheaper) |
| ROE | -78.10% | 1232.00% | Weak |
| Net Margin | -15.40% | -4007.00% (disorted) | Weak |
| Debt/Equity | 1.51 | 0.78 | Weak (High Leverage) |
| Current Ratio | 0.96 | 2.38 | Weak Liquidity |
| ROA | -21.38% | -158062.00% (disorted) | Weak |
DLTR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dollar Tree, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-18.13%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
-502.92%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
68.35%
Industry Style: Defensive, Dividend, Low Volatility
High Growth