Dollar Tree Inc

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DLTR : NASDAQ : Services
$78.08 -0.77 | -0.98%
Today's Range: 76.72 - 79.14
Avg. Daily Volume: 2707300.0
05/24/17 - 4:00 PM ET

Financial Analysis


DOLLAR TREE INC's gross profit margin for the fourth quarter of its fiscal year 2016 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. DOLLAR TREE INC has very weak liquidity. Currently, the Quick Ratio is 0.48 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 22.29% 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 FY16 Q4 FY15
Net Sales ($mil)5635.35365.3
EBITDA ($mil)742.2665.6
EBIT ($mil)586.5490.5
Net Income ($mil)321.8229.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)870.4740.1
Total Assets ($mil)15701.615901.2
Total Debt ($mil)6321.87346.4
Equity ($mil)5389.54406.9


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin34.8334.45
EBITDA Margin13.1712.4
Operating Margin10.419.14
Sales Turnover1.320.97
Return on Assets5.71.77
Return on Equity16.626.4
Debt Q4 FY16 Q4 FY15
Current Ratio1.871.88
Debt/Capital0.540.63
Interest Expense77.1114.8
Interest Coverage7.614.27


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)236.14234.97
Div / share0.00.0
EPS1.360.97
Book value / share22.8218.76
Institutional Own % n/a n/a
Avg Daily Volume2785833.02846933.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 15.66 for the Multiline Retail industry and a discount compared to the S&P 500 average of 25.02. For additional comparison, its price-to-book ratio of 3.46 indicates a premium versus the S&P 500 average of 3.00 and a premium versus the industry average of 3.37. 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 20.90 Peers 15.66   DLTR 11.15 Peers 8.05

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 15.71 Peers 14.56   DLTR 1.16 Peers 11.66

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 3.46 Peers 3.37   DLTR 215.00 Peers 34.75

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 0.90 Peers 0.64   DLTR 33.68 Peers 7.15

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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