No-moat Dollar Tree’s fiscal 2024 first-quarter results were uninspiring, and we plan to slightly reduce our full-year comparable sales growth and margin forecast because of the tighter spending environment. However, we don’t expect our $115 per share fair value estimate to be significantly affected.
The new management team brings years of experience, and its revamped capital allocation priorities, particularly surrounding the Family Dollar banner, should drive a material improvement in financial performance.
Big box retailers have increasingly looked to expand their product assortment by offering items with $1.00 price points, which could add to competitive pressure.
|
Metric
|
DLTR
|
DG
|
TGT
|
|---|---|---|---|
Price/Earnings (Normalized) | 18.71 | 18.59 | 16.41 |
Price/Book Value | 3.27 | 4.01 | 4.89 |
Price/Sales | 0.78 | 0.72 | 0.63 |
Price/Cash Flow | 10.44 | 10.97 | 8.90 |
|
Metric
|
DLTR
|
DG
|
TGT
|
|---|---|---|---|
Quick Ratio | 0.13 | 0.10 | 0.27 |
Current Ratio | 1.28 | 1.19 | 0.91 |
Interest Coverage | −8.37 | 7.49 | 11.55 |
|
Metric
|
DLTR
|
DG
|
TGT
|
|---|---|---|---|
Return on Assets (Normalized) | 5.58% | 5.07% | 7.99% |
Return on Equity (Normalized) | 15.40% | 23.87% | 34.30% |
Return on Invested Capital (Normalized) | 7.29% | 7.31% | 14.78% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Walmart Inc
WMT
| Zbnqchj | Hdhsw | $536.7 Bil | |||
| Costco Wholesale Corp
COST
| Sbmgfrngr | Tlddm | $376.5 Bil | |||
| Target Corp
TGT
| Dbwrvbpp | Fqhbc | $67.6 Bil | |||
| Wal - Mart de Mexico SAB de CV
WMMVF
| — | Ktk | $60.8 Bil | |||
| Wal - Mart de Mexico SAB de CV ADR
WMMVY
| — | Vfbl | $59.4 Bil | |||
| Dollar General Corp
DG
| Tcjwsskn | Wcvktt | $27.9 Bil | |||
| Dollarama Inc
DLMAF
| — | Xng | $25.5 Bil | |||
| Pan Pacific International Holdings Corp ADR
DQJCY
| — | Gnjb | $14.8 Bil | |||
| BJ's Wholesale Club Holdings Inc
BJ
| — | Khzhw | $11.7 Bil |
