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Dollar Tree Inc DLTR

Morningstar Rating
$148.44 +1.76 (1.20%)
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Company Report

Stout Competition and Slower Consumer Spending Likely to Pressure Dollar Tree's Turnaround Strategy

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 33% premium.
Price
$148.44
Fair Value
$217.00
Uncertainty
High
1-Star Price
$877.50
5-Star Price
$92.60
Economic Moat
Vsk
Capital Allocation
Sszzylx

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
$146.68
Day Range
$145.43149.29
52-Week Range
$102.77161.10
Bid/Ask
$148.00 / $148.44
Market Cap
$32.34 Bil
Volume/Avg
2.1 Mil / 2.2 Mil

Key Statistics

Price/Earnings (Normalized)
26.41
Price/Sales
1.12
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
2.00%

Company Profile

Dollar Tree operates discount stores across the United States and Canada, with over 8,200 shops under its namesake banner and 8,350 under Family Dollar. About 45% of Dollar Tree’s sales in fiscal 2022 were composed of consumables (including food, health and beauty, and cleaning products), nearly 50% 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 (nearly 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
207,548

Competitors

Valuation

Metric
DLTR
WMT
DG
Price/Earnings (Normalized)
26.4126.9417.18
Price/Book Value
3.595.665.08
Price/Sales
1.120.740.84
Price/Cash Flow
14.7614.1010.30
Price/Earnings
DLTR
WMT
DG

Financial Strength

Metric
DLTR
WMT
DG
Quick Ratio
0.100.200.08
Current Ratio
1.360.851.22
Interest Coverage
15.409.758.63
Quick Ratio
DLTR
WMT
DG

Profitability

Metric
DLTR
WMT
DG
Return on Assets (Normalized)
5.61%6.56%6.59%
Return on Equity (Normalized)
14.91%21.56%32.35%
Return on Invested Capital (Normalized)
7.30%12.12%9.34%
Return on Assets
DLTR
WMT
DG
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Name
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Economic Moat
Market Cap
WMT
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COST
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WMMVF
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DG
Dollar General CorpFjjzgd$32.8 Bil
DLMAF
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DQJCF
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DQJCY
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