Dollar Tree Inc

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DLTR : NASDAQ : Services
$80.00 -0.09 | -0.11%
Today's Range: 79.26 - 80.28
Avg. Daily Volume: 2,313,900
09/26/16 - 4:00 PM ET

Financial Analysis


DOLLAR TREE INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth.

During the same period, stockholders' equity ("net worth") has increased by 20.01% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)4996.33011.1
EBITDA ($mil)519.1297.1
EBIT ($mil)357.2212.3
Net Income ($mil)170.2-98.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1097.21306.5
Total Assets ($mil)16329.416565.1
Total Debt ($mil)7301.28348.5
Equity ($mil)4856.94047.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin33.5133.58
EBITDA Margin10.389.86
Operating Margin7.157.05
Sales Turnover1.250.59
Return on Assets4.371.87
Return on Equity14.697.68
Debt Q2 FY16 Q2 FY15
Current Ratio2.042.18
Debt/Capital0.60.67
Interest Expense87.336.4
Interest Coverage4.095.83


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)235.7234.7
Div / share0.00.0
EPS0.72-0.46
Book value / share20.6117.24
Institutional Own % n/a n/a
Avg Daily Volume2317353.02221044.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 17.40 for the Multiline Retail industry and a value on par with the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 3.89 indicates a premium versus the S&P 500 average of 2.82 and a premium versus the industry average of 3.72. The current price-to-sales ratio is well below the S&P 500 average, but 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 26.51 Peers 17.40   DLTR 12.50 Peers 9.11

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

DLTR is trading at a significant 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DLTR 17.60 Peers 16.80   DLTR 0.13 Peers 1.27

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 significant premium to 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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DLTR 3.89 Peers 3.72   DLTR 98.68 Peers 22.52

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DLTR is trading at a valuation on par with 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 0.93 Peers 0.66   DLTR 108.97 Peers 22.12

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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