Dollar Tree, Inc. Fundamental Analysis (XETRA: DT3.DE)
Dollar Tree, Inc. (XETRA: DT3.DE) shows strong financial fundamentals with a PE ratio of 13.81, profit margin of 8.03%, and ROE of 45.57%. The company generates $20.2B in annual revenue with strong year-over-year growth of 10.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DT3.DE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDT3.DE demonstrates superior asset utilization.
Valuation Score
ExcellentDT3.DE trades at attractive valuation levels.
Growth Score
ModerateDT3.DE shows steady but slowing expansion.
Financial Health Score
ModerateDT3.DE shows balanced financial health with some risks.
Profitability Score
ModerateDT3.DE maintains healthy but balanced margins.
Key Financial Metrics
Is DT3.DE Expensive or Cheap?
P/E Ratio
DT3.DE trades at 13.81 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DT3.DE's PEG of 0.21 indicates potential undervaluation.
Price to Book
The market values Dollar Tree, Inc. at 6.30 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.31 times EBITDA. This is generally considered low.
How Well Does DT3.DE Make Money?
Net Profit Margin
For every $100 in sales, Dollar Tree, Inc. keeps $8.03 as profit after all expenses.
Operating Margin
Core operations generate 10.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $45.57 in profit for every $100 of shareholder equity.
ROA
Dollar Tree, Inc. generates $11.49 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 $3.02B, showing steady but balanced cash generation.
Free Cash Flow
Dollar Tree, Inc. produces free cash flow of $1.87B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $9.73 in free cash annually.
FCF Yield
DT3.DE converts 8.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.46
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How DT3.DE Stacks Against Its Sector Peers
| Metric | DT3.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.81 | 20.84 | Better (Cheaper) |
| ROE | 45.57% | 637.00% | Weak |
| Net Margin | 8.03% | -2438.00% (disorted) | Weak |
| Debt/Equity | 2.24 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.13 | 2.30 | Neutral |
| ROA | 11.49% | 286.00% | Weak |
DT3.DE 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
-12.59%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
9.78%
Industry Style: Defensive, Dividend, Low Volatility
GrowingFCF CAGR
7.00%
Industry Style: Defensive, Dividend, Low Volatility
Growing