-0.07 | -0.14%
DOLLAR TREE INC's gross profit margin for the fourth quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. DOLLAR TREE INC has weak liquidity. Currently, the Quick Ratio is 0.59 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 23.99% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
| Income Statement | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Net Sales ($mil) | 2245.8 | 1945.6 |
| EBITDA ($mil) | 410.4 | 346.0 |
| EBIT ($mil) | 363.5 | 302.0 |
| Net Income ($mil) | 228.6 | 187.9 |
| Balance Sheet | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 399.9 | 288.3 |
| Total Assets ($mil) | 2752.0 | 2328.6 |
| Total Debt ($mil) | 271.3 | 265.8 |
| Equity ($mil) | 1667.3 | 1344.6 |
| Profitability | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Gross Profit Margin | 39.97 | 40.01 |
| EBITDA Margin | 18.27 | 17.78 |
| Operating Margin | 16.19 | 15.52 |
| Sales Turnover | 2.69 | 2.85 |
| Return on Assets | 22.5 | 20.96 |
| Return on Equity | 37.14 | 36.31 |
| Debt | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Current Ratio | 2.18 | 2.08 |
| Debt/Capital | 0.14 | 0.17 |
| Interest Expense | 0.4 | 0.7 |
| Interest Coverage | 908.75 | 431.43 |
| Share Data | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Shares outstanding (mil) | 224.58 | 231.16 |
| Div / share | 0.0 | 0.0 |
| EPS | 1.01 | 0.8 |
| Book value / share | 7.42 | 5.82 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2630769.0 | 3747896.0 |
BUY. The current P/E ratio indicates a premium compared to an average of 15.93 for the Multiline Retail industry and a value on par with the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 6.70 indicates a significant premium versus the S&P 500 average of 2.44 and a significant premium versus the industry average of 3.42. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, DOLLAR TREE INC proves to trade at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DLTR 18.43 | Peers 15.93 | DLTR 16.49 | Peers 11.21 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. DLTR is trading at a premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. DLTR is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| DLTR 15.69 | Peers 15.48 | DLTR 4.94 | Peers 2.57 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. DLTR is trading at a premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. DLTR trades at a significant premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| DLTR 6.70 | Peers 3.42 | DLTR 33.00 | Peers 4.48 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. DLTR is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. DLTR is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| DLTR 1.51 | Peers 0.75 | DLTR 11.52 | Peers 5.10 | |||||||||||||||||||||
|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. DLTR is trading at a significant premium to its industry. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. DLTR has a sales growth rate that significantly exceeds its peers. |
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