Fundamental analysis: Dollar Tree, Inc. (DLTR)

Awarener score: 6.3

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Poor) and growth (Very good), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

Business has been growing at a very good pace. It's been great when measured against peer companies.
Dollar Tree, Inc. business varies, ups and downs are rather normal. Risk is sufficient. It looks bottom tier against rivals.

Margins score: 5.5

DLTR profit margins -on goods and services sold- are usually hardly sufficient. They stand somewhat better than rival companies.
Business profit on sales tends to be sufficient. It's similar to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain rather normal in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still slightly better than similar companies.
Profits -before income taxes- are usually sufficient considering total sales, and remain almost average when measured against rivals.
Total net profit tends to be sufficient when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 1.9

Dollar Tree, Inc. profit -on goods and services sold- has been growing at a good pace. It's been impressive in relation to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 3.0

DLTR had to pay a lot of income taxes in relation to profits made in the past years. It's been mediocre against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 7.2

Dollar Tree, Inc. usually gets very good returns on the resources it controls. It proves substantially worse when measured against peer firms.
The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain in a very weak position compared to similar companies.
Profitability -in relation to owned resources- is usually quite good. It ranks substantially worse when measured against competitors.
In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's substantially worse when measured against comparable enterprises.

Usage of Funds score: 6.8

DLTR usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands substantially worse when measured against rival firms.
The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is almost average when measured against industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in good shape compared to rivals.
The company uses a modest portion of genuine fund generation to reward investors, which can probably be sustained. It still looks encouraging in relation to competitors.

Balance Sheet score: 4.8

Dollar Tree, Inc. intangible assets (like brands and goodwill) represent a portion of resources controlled, according to accounting books. There could be difficulties in liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be excellent in relation to similar firms.
A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains slightly worse than rival firms.
Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks last-in-rank when measured against rivals.
For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's rather normal in relation to peer firms.
For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is somewhat better than similar enterprises.
Usually, sales are on cash. It still ranks more than average in relation to peers.
Normally has approximately somewhat more than two months of sales worth in inventory. It comes up as lacking compared to competitors.
On average, it takes less than three months from the purchase to charging customers. It happens to be slightly worse than peers.
On average pays suppliers before a month from the purchase. It ranks substantially worse when measured against industry peers.
The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's close to average when compared to similar companies.
Net interest expenses consume a portion of usual business earnings, but are bearable. It stands worse than most rival firms.
Business earnings have usually been low when measured against loans taken. Even cutting back reinvesting in the business, it could take more than seven years to repay the obligations with current profitability. It ranks weak when measured against comparable enterprises.
Revenues are modest in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks close to average when compared to similar firms.
Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still somewhat worse than peer companies.

Valuation score: 5.6

Dollar Tree, Inc. looks somewhat expensive in relation to profits and financial position. It happens to be great when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains close to average when compared to peers.
In the past twelve months, the company generated some free funds in relation to the stock price, which stands better than most similar companies.
The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still encouraging in relation to industry firms.
In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up lacking compared to peer ventures.
The company is indebted, it should focus on loan repayment. It looks somewhat worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be more or less reasonable, but hardly cheap. It ranks great when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly better than peer firms.
In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still in a weak position compared to peer companies.

Total score: 5.1

Company at a glance: Dollar Tree, Inc. (DLTR)

Sector, industry: Consumer Defensive, Discount Stores

Market Cap: 29.97 billions

Revenues TTM: 46.51 billions

Dollar Tree, Inc. operates discount variety retail stores. It operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ 1.25. It provides consumable merchandise, including candy and food, and health and personal care, as well as everyday consumables, such as household paper and chemicals, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, arts and crafts supplies, and other items; and seasonal goods that include Christmas, Easter, Halloween, and Valentine's Day merchandise. As of January 29, 2022, this segment operated 8,061 stores under the Dollar Tree and Dollar Tree Canada brands, as well as 15 distribution centers in the United States and 2 distribution centers in Canada. The Family Dollar segment operates general merchandise retail discount stores that offer consumable merchandise, which comprise food and beverages, tobacco, health and personal care, household chemicals, paper products, hardware and automotive supplies, diapers, batteries, and pet food and supplies; and home products, including housewares, home décor, and giftware, as well as domestics, such as comforters, sheets, and towels. It also provides apparel and accessories merchandise comprising clothing, fashion accessories, and shoes; and seasonal and electronics merchandise that include Christmas, Easter, Halloween, and Valentine's Day merchandise, as well as personal electronics, which comprise pre-paid cellular phones and services, stationery and school supplies, and toys. As of January 29, 2022, this segment operated 8,016 stores under the Family Dollar brand; and 11 distribution centers. The company was founded in 1986 and is based in Chesapeake, Virginia.