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Dollar Tree Stores Inc.
DLTR : NASDAQ : Services

$51.09 0.40 | 0.79%
Today's Range: 50.54 - 51.32
Avg. Daily Volume: 2,569,700
04/17/14 - 4:00 PM ET

Financial Analysis


DOLLAR TREE INC's gross profit margin for the fourth quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. DOLLAR TREE INC has very weak liquidity. Currently, the Quick Ratio is 0.39 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 29.78% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q4 FY13 Q4 FY12
Net Sales ($mil)2234.92245.8
EBITDA ($mil)398.6410.4
EBIT ($mil)348.2363.5
Net Income ($mil)213.1228.6


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)267.7399.9
Total Assets ($mil)2771.92752.0
Total Debt ($mil)769.8271.3
Equity ($mil)1170.71667.3


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin39.1839.97
EBITDA Margin17.8318.27
Operating Margin15.5816.19
Sales Turnover2.832.69
Return on Assets21.5222.5
Return on Equity50.9637.14
Debt Q4 FY13 Q4 FY12
Current Ratio2.012.18
Debt/Capital0.40.14
Interest Expense9.00.4
Interest Coverage38.69908.75


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)208.13224.58
Div / share0.00.0
EPS1.021.01
Book value / share5.627.42
Institutional Own % n/a n/a
Avg Daily Volume2641776.02031439.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 17.61 for the Multiline Retail industry and a value on par with the S&P 500 average of 18.29. For additional comparison, its price-to-book ratio of 9.03 indicates a significant premium versus the S&P 500 average of 2.52 and a significant premium versus the industry average of 3.47. The price-to-sales ratio is below the S&P 500 average, but well above the industry average. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DLTR 18.48 Peers 17.61   DLTR 13.33 Peers 9.03

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

DLTR is trading at a valuation on par with 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DLTR 13.96 Peers 14.83   DLTR 1.23 Peers 1.41

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

DLTR is trading at a valuation on par with its peers.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DLTR 9.03 Peers 3.47   DLTR 1.85 Peers -7.94

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DLTR 1.35 Peers 0.72   DLTR 6.02 Peers 1.41

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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