Dollar Tree Inc

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DLTR : NASDAQ : Services
$83.42 -0.01 | -0.01%
Today's Range: 82.29 - 83.96
Avg. Daily Volume: 2863400.0
09/20/17 - 4:00 PM ET

Financial Analysis


DOLLAR TREE INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

During the same period, stockholders' equity ("net worth") has increased by 20.65% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)5281.24996.3
EBITDA ($mil)573.4519.1
EBIT ($mil)422.1357.2
Net Income ($mil)233.8170.2


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)697.31097.2
Total Assets ($mil)15532.316329.4
Total Debt ($mil)5760.97301.2
Equity ($mil)5860.24856.9


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin33.6933.51
EBITDA Margin10.8510.38
Operating Margin7.997.15
Sales Turnover1.371.25
Return on Assets5.974.37
Return on Equity15.8314.69
Debt Q2 FY17 Q2 FY16
Current Ratio1.832.04
Debt/Capital0.50.6
Interest Expense75.887.3
Interest Coverage5.574.09


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)236.8235.7
Div / share0.00.0
EPS0.980.72
Book value / share24.7520.61
Institutional Own % n/a n/a
Avg Daily Volume3170425.02790474.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 16.35 for the Multiline Retail industry and a discount compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 3.37 indicates valuation on par with the S&P 500 average of 3.10 and a discount versus the industry average of 3.49. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average. The valuation analysis reveals that, DOLLAR TREE INC seems to be trading 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 21.35 Peers 16.35   DLTR 11.84 Peers 9.38

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 16.36 Peers 15.22   DLTR 0.91 Peers 3.91

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.

 

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 3.37 Peers 3.49   DLTR 29.47 Peers 3.26

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 0.69   DLTR 3.98 Peers 1.60

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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