Recent News
Late summer reporting and filings reiterated that the Family Dollar divestiture closed in early July 2025, delivering roughly $800 million of net proceeds and simplifying the corporate footprint; subsequent coverage in September described new distribution-center plans and continued rollout of multi-price store conversions and site investments.
Technical Analysis
ADX / DI+ / DI-: ADX sits at 32.26, signaling a strong trend in place. DI+ shows an increasing trend while DI- trends down, a conjunction that produces a bullish directional bias consistent with momentum building toward higher prices.
MACD: MACD at -0.52 has turned higher and lies above its signal line (-2.08), producing a bullish momentum crossover despite the negative absolute value; that crossover supports near-term upside pressure on price.
MRO (Momentum/Regression Oscillator): MRO at -5.19 with a dip-and-reversal pattern indicates the market price sits below the model target and implies potential for a corrective increase toward fair-value levels.
RSI: RSI at 47.1 and rising denotes recovered buying interest without overbought conditions, favoring additional measured gains rather than an immediate exhaustion of momentum.
Price vs. Moving Averages and Bands: Last close $100.47 trades above the 200-day average ($89.11) and rounds the 50-day average ($99.99), while exceeding the 20-day average ($92.87) and the 1x Bollinger upper band ($98.50). Those alignments favor continuation of the short-to-intermediate up-leg, with the super-trend lower support near $91.94 providing a reference level for downside containment.
Ichimoku / EMAs: Price sits below the Senkou cloud (Senkou A $106.75 / Senkou B $107.33), which tempers a fully bullish read, but the 12/26-day EMAs (~$95.6) trend up and remain below price, supplying momentum confirmation for near-term appreciation.
Fundamental Analysis
Revenue and Profitability: Total revenue registers at $4,570,400,000. YoY revenue growth reads -55.11% while the period-over-period revenue change shows -1.49%; these numbers reflect discrete changes in business composition and require reading alongside divestiture items. Operating income / EBIT of $231,000,000 produces an EBIT margin of 5.06%, a YoY margin expansion of 83.98% but a QoQ contraction of -47.30%.
Margins and Cash Generation: Gross margin at 34.432% and operating margin at 5.054% both improved year-over-year, while operating cash flow stands at $625,100,000 and free cash flow at $380,100,000 (free-cash-flow yield 1.75%), slightly above the industry peer mean for free-cash-flow yield.
Leverage and Liquidity: Total debt $7,342,700,000 with net debt $2,062,900,000 yields debt-to-EBITDA of ~18.66x and debt-to-equity of 2.04; interest coverage remains robust at 10.15x. Cash and short-term investments total $666,300,000 while the current ratio sits at 1.04 and quick ratio at 0.27.
Valuation Multiples and Market Signals: Reported trailing PE stands at 138.1x and price-to-book at 6.04x; both measure above the industry peer mean values (PE mean ~71.8x; P/B mean ~4.80), indicating richer market pricing relative to peers on conventional multiples. Forward EPS equals $1.515 with a forward PE near 65.21x. Enterprise multiple runs high near 72.28x.
Earnings Delivery: Reported EPS $0.77 versus an estimate of $0.41 produced an EPS surprise of ~87.8%, a notable beat that affected profitability metrics for the period under continuing operations.
Operational Efficiency: Asset turnover of 0.2886 trails the industry peer mean but sits within the reported peer range; return on equity 5.226% falls below the industry peer mean but above the peer low, reflecting modest capital efficiency amid restructuring. Inventory days (~82 days) and a cash-conversion-cycle ~34 days remain operational levers.
WMDST Valuation Conclusion: The current valuation as determined by WMDST: over-valued. The designation reflects stretched multiples (trailing and enterprise measures) relative to fundamental cash-generation and a balance sheet still digesting divestiture effects.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-07-31 |
| REPORT DATE: | 2025-09-03 |
| NEXT REPORT DATE: | 2025-12-03 |
| CASH FLOW | Begin Period Cash Flow | $ 1.3 B |
| Operating Cash Flow | $ 625.1 M | |
| Capital Expenditures | $ -245.00 M | |
| Change In Working Capital | $ -227.30 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -553.90 M | |
| End Period Cash Flow | $ 757.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 4.6 B | |
| Forward Revenue | $ 1.9 B | |
| COSTS | ||
| Cost Of Revenue | $ 3.0 B | |
| Depreciation | $ 162.0 M | |
| Depreciation and Amortization | $ 162.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 4.3 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.6 B | |
| EBITDA | $ 393.4 M | |
| EBIT | $ 231.4 M | |
| Operating Income | $ 231.0 M | |
| Interest Income | — | |
| Interest Expense | $ 22.8 M | |
| Net Interest Income | $ -22.80 M | |
| Income Before Tax | $ 208.6 M | |
| Tax Provision | $ 53.1 M | |
| Tax Rate | 25.455 % | |
| Net Income | $ 188.4 M | |
| Net Income From Continuing Operations | $ 281.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.41 | |
| EPS Actual | $ 0.77 | |
| EPS Difference | $ 0.36 | |
| EPS Surprise | 87.805 % | |
| Forward EPS | $ 1.51 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 13.4 B | |
| Intangible Assets | $ 422.4 M | |
| Net Tangible Assets | $ 3.2 B | |
| Total Current Assets | $ 3.6 B | |
| Cash and Short-Term Investments | $ 666.3 M | |
| Cash | $ 666.3 M | |
| Net Receivables | — | |
| Inventory | $ 2.7 B | |
| Long-Term Investments | $ 217.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 1.6 B | |
| Short-Term Debt | $ 299.5 M | |
| Total Current Liabilities | $ 3.5 B | |
| Net Debt | $ 2.1 B | |
| Total Debt | $ 7.3 B | |
| Total Liabilities | $ 9.8 B | |
| EQUITY | ||
| Total Equity | $ 3.6 B | |
| Retained Earnings | $ 3.7 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 17.62 | |
| Shares Outstanding | 204.634 M | |
| Revenue Per-Share | $ 22.33 | |
| VALUATION | Market Capitalization | $ 21.8 B |
| Enterprise Value | $ 28.4 B | |
| Enterprise Multiple | 72.281 | |
| Enterprise Multiple QoQ | 80.018 % | |
| Enterprise Multiple YoY | 43.205 % | |
| Enterprise Multiple IPRWA | high: 85.579 DLTR: 72.281 median: 46.609 mean: 46.226 low: 17.483 |
|
| EV/R | 6.222 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.713 | |
| Asset To Liability | 1.369 | |
| Debt To Capital | 0.671 | |
| Debt To Assets | 0.549 | |
| Debt To Assets QoQ | 26.895 % | |
| Debt To Assets YoY | 892.725 % | |
| Debt To Assets IPRWA | DLTR: 0.549 high: 0.539 mean: 0.392 median: 0.35 low: 0.345 |
|
| Debt To Equity | 2.037 | |
| Debt To Equity QoQ | 0.578 % | |
| Debt To Equity YoY | 1102.616 % | |
| Debt To Equity IPRWA | high: 2.13 DLTR: 2.037 mean: 1.297 median: 1.295 low: 0.884 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 6.036 | |
| Price To Book QoQ | 38.092 % | |
| Price To Book YoY | 102.283 % | |
| Price To Book IPRWA | high: 7.904 DLTR: 6.036 mean: 4.802 median: 2.988 low: 0.32 |
|
| Price To Earnings (P/E) | 138.093 | |
| Price To Earnings QoQ | 114.249 % | |
| Price To Earnings YoY | -9.663 % | |
| Price To Earnings IPRWA | high: 158.733 DLTR: 138.093 mean: 71.806 median: 58.392 low: 8.181 |
|
| PE/G Ratio | -3.551 | |
| Price To Sales (P/S) | 4.761 | |
| Price To Sales QoQ | 29.426 % | |
| Price To Sales YoY | 59.544 % | |
| Price To Sales IPRWA | high: 8.195 DLTR: 4.761 mean: 4.527 median: 2.231 low: 0.354 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 65.209 | |
| Forward PE/G | -1.677 | |
| Forward P/S | 11.573 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 32.199 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.289 | |
| Asset Turnover Ratio QoQ | 14.863 % | |
| Asset Turnover Ratio YoY | -12.541 % | |
| Asset Turnover Ratio IPRWA | high: 0.442 mean: 0.387 median: 0.384 DLTR: 0.289 low: 0.227 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | 1.112 | |
| Inventory Turnover Ratio QoQ | 0.112 % | |
| Inventory Turnover Ratio YoY | 9.029 % | |
| Inventory Turnover Ratio IPRWA | high: 1.516 median: 1.381 mean: 1.344 DLTR: 1.112 low: 0.656 |
|
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 33.934 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -35.952 % | |
| Cash Conversion Cycle Days IPRWA | high: 224.823 median: 50.135 mean: 45.547 DLTR: 33.934 low: -57.702 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 35.987 | |
| CapEx To Revenue | -0.054 | |
| CapEx To Depreciation | -1.512 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 6.0 B | |
| Net Invested Capital | $ 6.3 B | |
| Invested Capital | $ 6.3 B | |
| Net Tangible Assets | $ 3.2 B | |
| Net Working Capital | $ 127.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.191 | |
| Current Ratio | 1.036 | |
| Current Ratio QoQ | -0.697 % | |
| Current Ratio YoY | 2.07 % | |
| Current Ratio IPRWA | high: 1.714 mean: 1.303 median: 1.253 DLTR: 1.036 low: 0.99 |
|
| Quick Ratio | 0.267 | |
| Quick Ratio QoQ | -62.698 % | |
| Quick Ratio YoY | 61.616 % | |
| Quick Ratio IPRWA | high: 0.983 mean: 0.583 median: 0.32 DLTR: 0.267 low: 0.188 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 18.665 | |
| Cost Of Debt | 0.223 % | |
| Interest Coverage Ratio | 10.149 | |
| Interest Coverage Ratio QoQ | -48.321 % | |
| Interest Coverage Ratio YoY | 44.416 % | |
| Interest Coverage Ratio IPRWA | high: 85.038 mean: 38.374 median: 11.5 DLTR: 10.149 low: 3.577 |
|
| Operating Cash Flow Ratio | 0.113 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 48.356 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -26.823 % | |
| Revenue Growth | -1.494 % | |
| Revenue Growth QoQ | -99.225 % | |
| Revenue Growth YoY | -55.108 % | |
| Revenue Growth IPRWA | high: 10.916 % mean: 7.108 % median: 5.724 % low: 2.796 % DLTR: -1.494 % |
|
| Earnings Growth | -38.889 % | |
| Earnings Growth QoQ | -3.463 % | |
| Earnings Growth YoY | -26.827 % | |
| Earnings Growth IPRWA | high: 57.692 % mean: 24.364 % median: 6.122 % low: -5.814 % DLTR: -38.889 % |
|
| MARGINS | ||
| Gross Margin | 34.432 % | |
| Gross Margin QoQ | -3.338 % | |
| Gross Margin YoY | 14.415 % | |
| Gross Margin IPRWA | high: 43.288 % DLTR: 34.432 % mean: 29.34 % median: 28.987 % low: 27.617 % |
|
| EBIT Margin | 5.063 % | |
| EBIT Margin QoQ | -47.304 % | |
| EBIT Margin YoY | 83.975 % | |
| EBIT Margin IPRWA | high: 12.273 % mean: 7.922 % median: 5.55 % low: 5.1 % DLTR: 5.063 % |
|
| Return On Sales (ROS) | 5.054 % | |
| Return On Sales QoQ | -47.398 % | |
| Return On Sales YoY | 83.648 % | |
| Return On Sales IPRWA | high: 11.544 % mean: 7.595 % median: 5.55 % DLTR: 5.054 % low: 4.54 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 380.1 M | |
| Free Cash Flow Yield | 1.747 % | |
| Free Cash Flow Yield QoQ | 27.332 % | |
| Free Cash Flow Yield YoY | -296.292 % | |
| Free Cash Flow Yield IPRWA | high: 2.359 % median: 2.212 % DLTR: 1.747 % mean: 1.711 % low: 0.669 % |
|
| Free Cash Growth | 62.367 % | |
| Free Cash Growth QoQ | -177.836 % | |
| Free Cash Growth YoY | -133.18 % | |
| Free Cash Growth IPRWA | high: 130.623 % DLTR: 62.367 % median: 1.525 % mean: -67.647 % low: -351.485 % |
|
| Free Cash To Net Income | 2.018 | |
| Cash Flow Margin | 8.594 % | |
| Cash Flow To Earnings | 2.085 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.19 % | |
| Return On Assets QoQ | -35.987 % | |
| Return On Assets YoY | 101.014 % | |
| Return On Assets IPRWA | high: 3.528 % mean: 2.224 % median: 1.64 % DLTR: 1.19 % low: 0.944 % |
|
| Return On Capital Employed (ROCE) | 2.338 % | |
| Return On Equity (ROE) | 0.052 | |
| Return On Equity QoQ | -40.573 % | |
| Return On Equity YoY | 191.304 % | |
| Return On Equity IPRWA | high: 0.089 mean: 0.067 median: 0.061 DLTR: 0.052 low: 0.022 |
|
| DuPont ROE | 5.017 % | |
| Return On Invested Capital (ROIC) | 2.723 % | |
| Return On Invested Capital QoQ | -39.543 % | |
| Return On Invested Capital YoY | -88.013 % | |
| Return On Invested Capital IPRWA | high: 7.091 % mean: 4.595 % median: 3.312 % DLTR: 2.723 % low: 2.028 % |
|