Recent News
On March 19, 2026 the company entered into a $500 million term loan credit facility and allowed its 364‑day revolving credit agreement to expire; the funding aims to support supply‑chain and store investments. In early April the company confirmed a planned merchandising leadership transition effective April 2026, promoting its senior merchandising executive into the chief merchandising role. The company also announced operational updates tied to store conversions and distribution‑center investments during the recent reporting period.
Technical Analysis
ADX sits at 24.94, indicating an emerging directional environment rather than a fully developed trend; the strength metric supports a near‑term directional attempt but not an extended trend without follow‑through.
Directional indicators present a bullish impulse: DI+ experienced a dip and reversal (now rising) while DI– is decreasing, a combination that biases near‑term directional pressure in favor of buyers if the ADX rises above the emerging range.
MACD reads -2.81 with a recent dip‑and‑reversal and now sits above its signal line (-3.26); the MACD crossing above the signal line constitutes a bullish momentum shift that can support short‑covering and a recovery attempt.
MRO at -0.02 indicates the price sits marginally below the model target, implying only modest upside pressure toward fair value; the oscillator’s proximity to zero tempers expectations for a strong mean‑reversion move.
RSI at 42.89 with a peak‑and‑reversal indicates momentum recently weakened; the oscillator still lives below neutral and signals room for consolidation before a durable recovery.
Price sits below the 50‑day ($113.74) and 200‑day ($111.57) averages and beneath the Ichimoku cloud (Senkou A 122.01 / Senkou B 125.05), signaling structural resistance above current levels. The 12‑day EMA shows a dip‑and‑reversal now supporting price attempts to reclaim short‑term averages, while Bollinger bands place the close ($101.97) above the lower 1σ band ($100.16) and below the 20‑day average ($104.05), consistent with a bounce inside a broader range.
Fundamental Analysis
Profitability: EBIT equals $694.6M and EBIT margin stands at 12.74%, above the industry peer mean of 9.04% and the peer median of 5.48%, and below the peer high of 17.99%, indicating above‑median operating efficiency for the group. EBIT margin rose QoQ by 76.40% but shows a YoY change of -219.31% (reflecting large period‑to‑period comparisons tied to recent structural changes in the business).
Top line and cash flow: Total revenue reached $5.45B with YoY revenue growth of 14.73% and a QoQ growth figure of 272.65% (period comparisons reflect recent operational resets). Operating cash flow equals $1.2322B and free cash flow totals $968.5M, producing a free cash flow yield of 4.03%, which exceeds the peer mean free cash flow yield of 3.13% and supports the current WMDST view of under‑valuation.
Leverage and coverage: Total debt stands at $7.056B with net debt of $1.7139B; debt/EBITDA at 8.16x signals elevated leverage by standard measures, but interest coverage at 38.38x remains strong and suggests the company retains ample ability to service interest. Debt‑to‑equity at 187.90% sits above the peer mean but the recent $500M term loan restructures short‑term funding and terminated the prior revolving facility.
Market multiples and valuation: Trailing P/E equals 47.3x, below the industry peer mean of 69.37x and median of 73.39x, while price‑to‑book at 6.40x sits slightly above the peer mean of 5.92x. PEG sits at 0.42 and forward P/E at 65.02x, consistent with multi‑year growth expectations embedded in current prices. EPS for the most recent period came in at $2.56 versus $2.53 estimate (a beat of $0.03, or ~1.19%).
WMDST valuation: The current valuation as determined by WMDST classifies the stock as under‑valued, supported by positive free cash flow generation, a free cash flow yield above peer mean, and trailing multiples below peer averages despite elevated leverage.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-01-31 |
| REPORT DATE: | 2026-03-16 |
| NEXT REPORT DATE: | 2026-06-15 |
| CASH FLOW | Begin Period Cash Flow | $ 637.3 M |
| Operating Cash Flow | $ 1.2 B | |
| Capital Expenditures | $ -263.70 M | |
| Change In Working Capital | $ 600.8 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 123.4 M | |
| End Period Cash Flow | $ 760.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 5.5 B | |
| Forward Revenue | $ 988.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 3.3 B | |
| Depreciation | $ 170.5 M | |
| Depreciation and Amortization | $ 170.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 4.8 B | |
| PROFITABILITY | ||
| Gross Profit | $ 2.1 B | |
| EBITDA | $ 865.1 M | |
| EBIT | $ 694.6 M | |
| Operating Income | $ 694.7 M | |
| Interest Income | — | |
| Interest Expense | $ 18.1 M | |
| Net Interest Income | $ -18.10 M | |
| Income Before Tax | $ 676.5 M | |
| Tax Provision | $ 164.8 M | |
| Tax Rate | 24.361 % | |
| Net Income | $ 506.1 M | |
| Net Income From Continuing Operations | $ 511.7 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.53 | |
| EPS Actual | $ 2.56 | |
| EPS Difference | $ 0.03 | |
| EPS Surprise | 1.186 % | |
| Forward EPS | $ 1.85 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 13.5 B | |
| Intangible Assets | $ 423.2 M | |
| Net Tangible Assets | $ 3.3 B | |
| Total Current Assets | $ 3.4 B | |
| Cash and Short-Term Investments | $ 717.8 M | |
| Cash | $ 717.8 M | |
| Net Receivables | — | |
| Inventory | $ 2.5 B | |
| Long-Term Investments | $ 201.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 1.5 B | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 3.2 B | |
| Net Debt | $ 1.7 B | |
| Total Debt | $ 7.1 B | |
| Total Liabilities | $ 9.7 B | |
| EQUITY | ||
| Total Equity | $ 3.8 B | |
| Retained Earnings | $ 3.8 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 18.92 | |
| Shares Outstanding | 198.505 M | |
| Revenue Per-Share | $ 27.46 | |
| VALUATION | Market Capitalization | $ 24.0 B |
| Enterprise Value | $ 30.4 B | |
| Enterprise Multiple | 35.099 | |
| Enterprise Multiple QoQ | -35.126 % | |
| Enterprise Multiple YoY | 25.915 % | |
| Enterprise Multiple IPRWA | high: 61.577 median: 52.728 mean: 46.803 DLTR: 35.099 low: 20.686 |
|
| EV/R | 5.571 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.586 | |
| Asset To Liability | 1.387 | |
| Debt To Capital | 0.653 | |
| Debt To Assets | 0.524 | |
| Debt To Assets QoQ | -6.576 % | |
| Debt To Assets YoY | 876.79 % | |
| Debt To Assets IPRWA | DLTR: 0.524 high: 0.508 mean: 0.38 median: 0.341 low: 0.335 |
|
| Debt To Equity | 1.879 | |
| Debt To Equity QoQ | -14.997 % | |
| Debt To Equity YoY | 647.371 % | |
| Debt To Equity IPRWA | DLTR: 1.879 high: 1.847 median: 1.255 mean: 1.194 low: 0.842 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 6.399 | |
| Price To Book QoQ | 8.652 % | |
| Price To Book YoY | 68.015 % | |
| Price To Book IPRWA | high: 9.769 DLTR: 6.399 mean: 5.921 median: 3.665 low: 0.501 |
|
| Price To Earnings (P/E) | 47.28 | |
| Price To Earnings QoQ | -43.731 % | |
| Price To Earnings YoY | 41.649 % | |
| Price To Earnings IPRWA | high: 93.763 median: 73.393 mean: 69.368 DLTR: 47.28 low: 16.93 |
|
| PE/G Ratio | 0.424 | |
| Price To Sales (P/S) | 4.408 | |
| Price To Sales QoQ | 2.637 % | |
| Price To Sales YoY | -245.539 % | |
| Price To Sales IPRWA | high: 9.109 mean: 5.154 DLTR: 4.408 median: 2.859 low: 0.392 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 65.019 | |
| Forward PE/G | 0.583 | |
| Forward P/S | 24.289 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 6.952 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.402 | |
| Asset Turnover Ratio QoQ | 14.383 % | |
| Asset Turnover Ratio YoY | -268.673 % | |
| Asset Turnover Ratio IPRWA | high: 0.51 mean: 0.432 median: 0.429 DLTR: 0.402 low: 0.348 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | 1.238 | |
| Inventory Turnover Ratio QoQ | 12.677 % | |
| Inventory Turnover Ratio YoY | -216.088 % | |
| Inventory Turnover Ratio IPRWA | high: 1.678 median: 1.643 mean: 1.508 DLTR: 1.238 low: 1.001 |
|
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 32.181 | |
| Cash Conversion Cycle Days QoQ | -7.018 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 182.121 DLTR: 32.181 median: 30.704 mean: 28.303 low: -108.4 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 25.049 | |
| CapEx To Revenue | -0.048 | |
| CapEx To Depreciation | -1.547 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 6.2 B | |
| Net Invested Capital | $ 6.2 B | |
| Invested Capital | $ 6.2 B | |
| Net Tangible Assets | $ 3.3 B | |
| Net Working Capital | $ 217.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.222 | |
| Current Ratio | 1.067 | |
| Current Ratio QoQ | 11.298 % | |
| Current Ratio YoY | 0.63 % | |
| Current Ratio IPRWA | high: 2.009 mean: 1.319 median: 1.135 DLTR: 1.067 low: 0.942 |
|
| Quick Ratio | 0.294 | |
| Quick Ratio QoQ | 31.545 % | |
| Quick Ratio YoY | -60.709 % | |
| Quick Ratio IPRWA | high: 1.122 mean: 0.657 median: 0.363 DLTR: 0.294 low: 0.225 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 8.156 | |
| Cost Of Debt | 0.186 % | |
| Interest Coverage Ratio | 38.376 | |
| Interest Coverage Ratio QoQ | 144.88 % | |
| Interest Coverage Ratio YoY | 91.807 % | |
| Interest Coverage Ratio IPRWA | high: 100.421 mean: 52.738 DLTR: 38.376 median: 14.212 low: 3.593 |
|
| Operating Cash Flow Ratio | 0.277 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 48.037 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.392 % | |
| Revenue Growth | 14.727 % | |
| Revenue Growth QoQ | 272.647 % | |
| Revenue Growth YoY | -108.867 % | |
| Revenue Growth IPRWA | high: 66.473 % mean: 19.684 % median: 18.471 % DLTR: 14.727 % low: 2.458 % |
|
| Earnings Growth | 111.57 % | |
| Earnings Growth QoQ | 95.247 % | |
| Earnings Growth YoY | 26.22 % | |
| Earnings Growth IPRWA | high: 1428.571 % DLTR: 111.57 % mean: 90.29 % median: 37.079 % low: 26.582 % |
|
| MARGINS | ||
| Gross Margin | 39.173 % | |
| Gross Margin QoQ | 9.144 % | |
| Gross Margin YoY | 213.861 % | |
| Gross Margin IPRWA | high: 40.324 % DLTR: 39.173 % mean: 28.747 % median: 27.19 % low: 26.631 % |
|
| EBIT Margin | 12.743 % | |
| EBIT Margin QoQ | 76.398 % | |
| EBIT Margin YoY | -219.305 % | |
| EBIT Margin IPRWA | high: 17.986 % DLTR: 12.743 % mean: 9.037 % median: 5.478 % low: 4.098 % |
|
| Return On Sales (ROS) | 12.745 % | |
| Return On Sales QoQ | 76.377 % | |
| Return On Sales YoY | -219.324 % | |
| Return On Sales IPRWA | high: 17.986 % DLTR: 12.745 % mean: 8.771 % median: 5.556 % low: 4.098 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 968.5 M | |
| Free Cash Flow Yield | 4.031 % | |
| Free Cash Flow Yield QoQ | -550.391 % | |
| Free Cash Flow Yield YoY | -48.161 % | |
| Free Cash Flow Yield IPRWA | high: 33.812 % DLTR: 4.031 % mean: 3.126 % median: 1.866 % low: 1.523 % |
|
| Free Cash Growth | -630.104 % | |
| Free Cash Growth QoQ | 325.556 % | |
| Free Cash Growth YoY | -374.355 % | |
| Free Cash Growth IPRWA | high: 4187.5 % mean: 474.354 % median: 49.04 % low: -400.483 % DLTR: -630.104 % |
|
| Free Cash To Net Income | 1.914 | |
| Cash Flow Margin | 16.429 % | |
| Cash Flow To Earnings | 1.769 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 3.732 % | |
| Return On Assets QoQ | 106.302 % | |
| Return On Assets YoY | -121.194 % | |
| Return On Assets IPRWA | high: 4.899 % DLTR: 3.732 % mean: 2.845 % median: 1.749 % low: 0.909 % |
|
| Return On Capital Employed (ROCE) | 6.785 % | |
| Return On Equity (ROE) | 0.135 | |
| Return On Equity QoQ | 90.907 % | |
| Return On Equity YoY | -114.504 % | |
| Return On Equity IPRWA | DLTR: 0.135 high: 0.109 mean: 0.08 median: 0.065 low: 0.031 |
|
| DuPont ROE | 14.02 % | |
| Return On Invested Capital (ROIC) | 8.492 % | |
| Return On Invested Capital QoQ | 111.771 % | |
| Return On Invested Capital YoY | -105.493 % | |
| Return On Invested Capital IPRWA | high: 10.657 % DLTR: 8.492 % mean: 5.976 % median: 3.568 % low: 3.158 % |
|