Recent News
Nov 26, 2025 — S&P Global: Dollar Tree positioned for stronger fiscal 2026 after the Family Dollar divestiture, citing new-store growth and multi-price assortment rollouts. Feb 16, 2026 — New York Post: Dollar Tree expanding into higher-income ZIP codes and testing higher price points up to $7, aiming to attract higher-spend customers while retaining value shoppers.
Technical Analysis
ADX sits at 18.99, indicating no established trend; directional momentum shows nascent strength but lacks ADX confirmation. DI+ at 25.14 and increasing provides a bullish directional signal, while DI- at 20.31 and decreasing reinforces that bullish directional bias.
MACD reads 0.89 and trends upward with the MACD line above the signal (-0.02), a bullish momentum configuration that supports further near-term upside in price momentum.
MRO equals 9.82 and shows a dip-and-reversal pattern; the positive MRO implies the price sits above the model target, creating a potential headwind for further gains consistent with the WMDST valuation that labels the stock over-valued.
RSI at 56.29 and increasing indicates modest bullishness without overbought pressure, aligning with momentum indicators rather than signaling exhaustion.
Price sits above the 20-, 50- and 200-day averages (price close $133.57 vs 20-day $124.21, 50-day $127.11, 200-day $107.62), and near the upper Bollinger band (upper 1σ $129.97, upper 2σ $135.73), implying strength but potential short-term resistance at the bands. Low betas (42-day 0.37; 52-week 0.66) and subdued volatility suggest moves may be orderly rather than rapid.
Fundamental Analysis
Revenue growth shows a mixed profile: trailing revenue growth registers 3.95%, year-over-year revenue growth 53.95%, and quarter-over-quarter change approximates -3.65%, indicating seasonal or reclassification effects alongside strong annual expansion. Total revenue stands at $4.75B for the period reported.
Profitability: operating income $343.3M with an operating margin of 7.23% and EBIT margin 7.22%. The EBIT margin aligns with the industry peer mean (~7.29%) and sits well above the industry peer median (4.00%), supporting the case that pricing and mix initiatives improved gross-to-operating conversion.
Cash and returns: cash and short-term investments $594.8M, operating cash flow $193.7M, but free cash flow negative at -$182.7M and free cash flow yield approximately -0.90%, which pressures valuation despite positive operating earnings. Cash conversion cycle ~34.61 days remains within the industry peer range.
Leverage: total debt $7.66B, net debt ~$2.46B, debt-to-assets 56.08% (above the industry peer high of ~52.05%), and debt-to-EBITDA ~15.09x. Interest coverage at 15.67x provides near-term servicing capacity, yet elevated leverage increases sensitivity to cash-flow variability.
Capital allocation and per-share metrics: EPS actual $1.21 vs estimate $1.08, an EPS surprise of +12.04%. P/E ~84.02 sits below the industry peer mean (~89.29) but above the industry peer median (~81.19). Price-to-book ~5.89 exceeds the industry peer mean (~5.10) and approaches the industry peer high, reflecting a valuation premium on balance-sheet multiples.
Margins and efficiency: gross margin 35.89% improved year-over-year; asset turnover 0.35 sits slightly below the industry peer mean (~0.37). Return on equity 7.06% exceeds the industry peer mean (~5.74%), indicating respectable capital returns despite elevated leverage.
Valuation summary: WMDST values the stock as over-valued. Positive earnings surprise, margin expansion, and repurchase activity support near-term optimism, but negative free cash flow, high leverage relative to peers, and a positive MRO (price above target) temper fundamental upside and inform the WMDST over-valued assessment.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-10-31 |
| REPORT DATE: | 2025-12-03 |
| NEXT REPORT DATE: | 2026-03-04 |
| CASH FLOW | Begin Period Cash Flow | $ 757.3 M |
| Operating Cash Flow | $ 193.7 M | |
| Capital Expenditures | $ -376.40 M | |
| Change In Working Capital | $ -243.80 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -120.00 M | |
| End Period Cash Flow | $ 637.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 4.8 B | |
| Forward Revenue | $ 1.6 B | |
| COSTS | ||
| Cost Of Revenue | $ 3.0 B | |
| Depreciation | $ 164.5 M | |
| Depreciation and Amortization | $ 164.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 4.4 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.7 B | |
| EBITDA | $ 507.7 M | |
| EBIT | $ 343.2 M | |
| Operating Income | $ 343.3 M | |
| Interest Income | — | |
| Interest Expense | $ 21.9 M | |
| Net Interest Income | $ -21.90 M | |
| Income Before Tax | $ 321.3 M | |
| Tax Provision | $ 76.7 M | |
| Tax Rate | 23.872 % | |
| Net Income | $ 244.6 M | |
| Net Income From Continuing Operations | $ 119.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.08 | |
| EPS Actual | $ 1.21 | |
| EPS Difference | $ 0.13 | |
| EPS Surprise | 12.037 % | |
| Forward EPS | $ 1.68 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 13.7 B | |
| Intangible Assets | $ 422.2 M | |
| Net Tangible Assets | $ 3.0 B | |
| Total Current Assets | $ 3.7 B | |
| Cash and Short-Term Investments | $ 594.8 M | |
| Cash | $ 594.8 M | |
| Net Receivables | — | |
| Inventory | $ 2.9 B | |
| Long-Term Investments | $ 205.6 M | |
| LIABILITIES | ||
| Accounts Payable | $ 1.7 B | |
| Short-Term Debt | $ 619.5 M | |
| Total Current Liabilities | $ 3.9 B | |
| Net Debt | $ 2.5 B | |
| Total Debt | $ 7.7 B | |
| Total Liabilities | $ 10.2 B | |
| EQUITY | ||
| Total Equity | $ 3.5 B | |
| Retained Earnings | $ 3.5 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 17.26 | |
| Shares Outstanding | 200.690 M | |
| Revenue Per-Share | $ 23.67 | |
| VALUATION | Market Capitalization | $ 20.4 B |
| Enterprise Value | $ 27.5 B | |
| Enterprise Multiple | 54.103 | |
| Enterprise Multiple QoQ | -25.15 % | |
| Enterprise Multiple YoY | 101.887 % | |
| Enterprise Multiple IPRWA | high: 106.688 median: 55.101 DLTR: 54.103 mean: 53.646 low: 33.002 |
|
| EV/R | 5.782 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.942 | |
| Asset To Liability | 1.34 | |
| Debt To Capital | 0.689 | |
| Debt To Assets | 0.561 | |
| Debt To Assets QoQ | 2.233 % | |
| Debt To Assets YoY | 1208.516 % | |
| Debt To Assets IPRWA | DLTR: 0.561 high: 0.52 mean: 0.377 median: 0.337 low: 0.334 |
|
| Debt To Equity | 2.211 | |
| Debt To Equity QoQ | 8.533 % | |
| Debt To Equity YoY | 1587.958 % | |
| Debt To Equity IPRWA | DLTR: 2.211 high: 2.017 median: 1.293 mean: 1.25 low: 0.882 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.889 | |
| Price To Book QoQ | -2.428 % | |
| Price To Book YoY | 190.264 % | |
| Price To Book IPRWA | high: 8.479 DLTR: 5.889 mean: 5.103 median: 2.794 low: 0.444 |
|
| Price To Earnings (P/E) | 84.024 | |
| Price To Earnings QoQ | -39.154 % | |
| Price To Earnings YoY | 30.617 % | |
| Price To Earnings IPRWA | high: 222.489 mean: 89.291 DLTR: 84.024 median: 81.186 low: 51.41 |
|
| PE/G Ratio | 1.47 | |
| Price To Sales (P/S) | 4.295 | |
| Price To Sales QoQ | -9.793 % | |
| Price To Sales YoY | 109.795 % | |
| Price To Sales IPRWA | high: 8.908 mean: 5.064 DLTR: 4.295 median: 2.148 low: 0.488 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 65.199 | |
| Forward PE/G | 1.141 | |
| Forward P/S | 13.82 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 12.227 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.351 | |
| Asset Turnover Ratio QoQ | 21.769 % | |
| Asset Turnover Ratio YoY | 6.673 % | |
| Asset Turnover Ratio IPRWA | high: 0.429 median: 0.375 mean: 0.374 DLTR: 0.351 low: 0.221 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | 1.099 | |
| Inventory Turnover Ratio QoQ | -1.216 % | |
| Inventory Turnover Ratio YoY | 11.873 % | |
| Inventory Turnover Ratio IPRWA | high: 1.406 median: 1.306 mean: 1.263 DLTR: 1.099 low: 0.598 |
|
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 34.61 | |
| Cash Conversion Cycle Days QoQ | 1.991 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 68.017 DLTR: 34.61 mean: 24.021 low: 13.483 median: 13.483 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -29.824 | |
| CapEx To Revenue | -0.079 | |
| CapEx To Depreciation | -2.288 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 5.9 B | |
| Net Invested Capital | $ 6.5 B | |
| Invested Capital | $ 6.5 B | |
| Net Tangible Assets | $ 3.0 B | |
| Net Working Capital | $ -159.30 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.153 | |
| Current Ratio | 0.959 | |
| Current Ratio QoQ | -7.465 % | |
| Current Ratio YoY | -7.25 % | |
| Current Ratio IPRWA | high: 1.605 mean: 1.277 median: 1.171 low: 0.975 DLTR: 0.959 |
|
| Quick Ratio | 0.224 | |
| Quick Ratio QoQ | -16.11 % | |
| Quick Ratio YoY | 30.949 % | |
| Quick Ratio IPRWA | high: 0.897 mean: 0.537 median: 0.273 DLTR: 0.224 low: 0.125 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 15.085 | |
| Cost Of Debt | 0.222 % | |
| Interest Coverage Ratio | 15.671 | |
| Interest Coverage Ratio QoQ | 54.41 % | |
| Interest Coverage Ratio YoY | 29.301 % | |
| Interest Coverage Ratio IPRWA | high: 77.067 mean: 35.971 DLTR: 15.671 median: 8.47 low: 0.973 |
|
| Operating Cash Flow Ratio | 0.081 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 49.784 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.028 % | |
| Revenue Growth | 3.952 % | |
| Revenue Growth QoQ | -364.525 % | |
| Revenue Growth YoY | 53.954 % | |
| Revenue Growth IPRWA | DLTR: 3.952 % high: 1.298 % mean: 0.551 % median: 0.234 % low: -0.73 % |
|
| Earnings Growth | 57.143 % | |
| Earnings Growth QoQ | -246.939 % | |
| Earnings Growth YoY | -14.92 % | |
| Earnings Growth IPRWA | DLTR: 57.143 % high: 1.282 % mean: -12.023 % median: -13.171 % low: -94.815 % |
|
| MARGINS | ||
| Gross Margin | 35.891 % | |
| Gross Margin QoQ | 4.237 % | |
| Gross Margin YoY | 15.89 % | |
| Gross Margin IPRWA | high: 42.406 % DLTR: 35.891 % mean: 29.022 % median: 28.227 % low: 28.004 % |
|
| EBIT Margin | 7.224 % | |
| EBIT Margin QoQ | 42.682 % | |
| EBIT Margin YoY | 64.033 % | |
| EBIT Margin IPRWA | high: 12.344 % mean: 7.285 % DLTR: 7.224 % median: 3.999 % low: 2.042 % |
|
| Return On Sales (ROS) | 7.226 % | |
| Return On Sales QoQ | 42.976 % | |
| Return On Sales YoY | 64.078 % | |
| Return On Sales IPRWA | high: 11.578 % DLTR: 7.226 % mean: 6.944 % median: 3.999 % low: 2.154 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -182.70 M | |
| Free Cash Flow Yield | -0.895 % | |
| Free Cash Flow Yield QoQ | -151.231 % | |
| Free Cash Flow Yield YoY | -138.812 % | |
| Free Cash Flow Yield IPRWA | high: 3.019 % median: 1.238 % mean: 1.078 % DLTR: -0.895 % low: -1.596 % |
|
| Free Cash Growth | -148.066 % | |
| Free Cash Growth QoQ | -337.411 % | |
| Free Cash Growth YoY | -47.567 % | |
| Free Cash Growth IPRWA | high: 32.4 % median: 22.263 % mean: -37.905 % DLTR: -148.066 % low: -375.819 % |
|
| Free Cash To Net Income | -0.747 | |
| Cash Flow Margin | 6.632 % | |
| Cash Flow To Earnings | 1.288 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.809 % | |
| Return On Assets QoQ | 52.017 % | |
| Return On Assets YoY | 78.227 % | |
| Return On Assets IPRWA | high: 3.423 % mean: 1.981 % DLTR: 1.809 % median: 1.169 % low: 0.058 % |
|
| Return On Capital Employed (ROCE) | 3.514 % | |
| Return On Equity (ROE) | 0.071 | |
| Return On Equity QoQ | 35.094 % | |
| Return On Equity YoY | 131.097 % | |
| Return On Equity IPRWA | high: 0.087 DLTR: 0.071 mean: 0.057 median: 0.044 low: 0.002 |
|
| DuPont ROE | 6.919 % | |
| Return On Invested Capital (ROIC) | 4.01 % | |
| Return On Invested Capital QoQ | 47.264 % | |
| Return On Invested Capital YoY | -95.232 % | |
| Return On Invested Capital IPRWA | high: 7.008 % mean: 4.202 % DLTR: 4.01 % median: 2.442 % low: 1.049 % |
|