Dollar Tree Inc

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DLTR : NASDAQ : Services
$96.13 | %
Today's Range: 94.67 - 96.14
Avg. Daily Volume: 2,171,100
07/22/16 - 4:00 PM ET

Financial Analysis


DOLLAR TREE INC's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry.

At the same time, stockholders' equity ("net worth") has greatly increased by 149.60% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)5085.82176.7
EBITDA ($mil)581.0296.0
EBIT ($mil)418.7243.2
Net Income ($mil)232.769.5


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)933.78114.5
Total Assets ($mil)16060.910869.2
Total Debt ($mil)7330.37819.7
Equity ($mil)4669.61870.8


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin33.7636.83
EBITDA Margin11.4213.59
Operating Margin8.2311.17
Sales Turnover1.150.81
Return on Assets2.774.87
Return on Equity9.5428.35
Debt Q1 FY16 Q1 FY15
Current Ratio2.049.2
Debt/Capital0.610.81
Interest Expense87.36.6
Interest Coverage4.836.85


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)235.6206.2
Div / share0.00.0
EPS0.980.34
Book value / share19.829.07
Institutional Own % n/a n/a
Avg Daily Volume2162208.02538325.0

Valuation


BUY. DOLLAR TREE INC's P/E ratio indicates a significant premium compared to an average of 22.96 for the Multiline Retail industry and a significant premium compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 4.78 indicates a significant premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 4.02. 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 51.45 Peers 22.96   DLTR 23.58 Peers 67.25

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.

 

Discount. 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 discount 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 20.60 Peers 25.37   DLTR 0.26 Peers 2.62

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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DLTR 4.78 Peers 4.02   DLTR -28.41 Peers 5.45

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 premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, DLTR is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DLTR 1.21 Peers 0.81   DLTR 109.68 Peers 20.30

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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