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Dollar Tree Inc DLTR

Morningstar Rating
$122.58 +0.89 (0.73%)
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Company Report

Dollar Tree's Turnaround Efforts Should Yield Long-Term Financial Improvement

Dollar Tree’s namesake banner boasts an impressive track record of strong top-line growth and steady margins despite operating in densely populated suburban markets where plentiful shopping alternatives exist nearby. The banner’s wide assortment of products priced at $1.25 or less has seemingly resonated with consumers due to its treasure hunt experience and price points that conform to shoppers operating on a tight budget.

Price vs Fair Value

DLTR is trading at a 6% premium.
Price
$121.69
Fair Value
$183.00
Uncertainty
High
1-Star Price
$583.27
5-Star Price
$94.00
Economic Moat
Pyd
Capital Allocation
Zlkwdgl

Bulls Say, Bears Say

Bulls

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.

Bears

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.

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News

Trading Information

Previous Close Price
$121.69
Day Range
$121.37122.65
52-Week Range
$102.77161.10
Bid/Ask
$122.56 / $124.81
Market Cap
$26.72 Bil
Volume/Avg
1.9 Mil / 3.0 Mil

Key Statistics

Price/Earnings (Normalized)
20.63
Price/Sales
0.87
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.88%

Company Profile

Dollar Tree operates discount stores across the United States and Canada, with over 8,400 shops under its namesake banner and 8,350 under Family Dollar. About 47% of Dollar Tree’s sales in fiscal 2023 were composed of consumables (including food, health and beauty, and cleaning products), around 45% from variety items (including toys and homewares), and over 5% from seasonal items. The Dollar Tree banner sells most of its merchandise at the $1.25 price point and positions its stores in well-populated suburban markets. Conversely, Family Dollar primarily sells consumable merchandise (80% of the banner’s sales) at prices below $10. About two-thirds of Family Dollar’s stores are located in urban and suburban markets, with the remaining one-third located in rural areas.
Sector
Consumer Defensive
Industry
Discount Stores
Stock Style Box
Mid Core
Total Number of Employees
211,826

Competitors

Valuation

Metric
DLTR
DG
TGT
Price/Earnings (Normalized)
20.6319.2718.71
Price/Book Value
3.634.745.74
Price/Sales
0.870.830.72
Price/Cash Flow
11.9711.7610.20
Price/Earnings
DLTR
DG
TGT

Financial Strength

Metric
DLTR
DG
TGT
Quick Ratio
0.150.100.27
Current Ratio
1.311.190.91
Interest Coverage
−8.267.4911.55
Quick Ratio
DLTR
DG
TGT

Profitability

Metric
DLTR
DG
TGT
Return on Assets (Normalized)
5.59%5.65%8.02%
Return on Equity (Normalized)
15.04%27.47%35.66%
Return on Invested Capital (Normalized)
7.27%8.10%15.13%
Return on Assets
DLTR
DG
TGT
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Discount Stores Industry Comparables

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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
WMT
Walmart IncGqvjgsvQbcq$477.5 Bil
COST
Costco Wholesale CorpQysgjwdsJpdj$317.3 Bil
TGT
Target CorpDnvqvfdrmsSjxh$77.2 Bil
WMMVF
Wal - Mart de Mexico SAB de CVTrtt$65.3 Bil
WMMVY
Wal - Mart de Mexico SAB de CV ADRJgfg$64.9 Bil
DG
Dollar General CorpGnfgrxjqWmrwfy$31.4 Bil
DLMAF
Dollarama IncHtmnw$23.1 Bil
DQJCY
Pan Pacific International Holdings Corp ADRWkkv$14.6 Bil
BJ
BJ's Wholesale Club Holdings IncNpzcc$9.8 Bil

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