Recent News
On May 28, 2026 Dollar Tree issued a first-quarter update that emphasized multi-price conversions, expanded store openings, and a sizeable share‑repurchase program while updating its fiscal outlook; coverage noted management’s confidence amid steady demand and tariff developments. On April 13, 2026 outlets highlighted the company’s decision to accelerate net-new store plans and the broader multi‑price rollout as a structural response to cost pressure. Additional investor‑meeting and transcript summaries through mid‑June reiterated priorities on assortment, cost discipline, and capital returns.
Technical Analysis
ADX at 36.06 signals a strong market trend; strength, not direction, characterizes the current price action and supports a persistent directional move into the near term.
DI+ reads 30.77 with a dip‑and‑reversal pattern, and DI‑ sits at 13.83 with a peak‑and‑reversal; both directional indicators align with a bullish directional push, reinforcing the ADX‑measured trend strength.
MACD stands at 3.62 with the signal line at 3.07 and shows a dip‑and‑reversal that crossed above the signal line—this crossover confirms bullish momentum and suggests continuation of upward pressure while the crossover holds.
Price sits above the 12‑day EMA ($113.13), 26‑day EMA ($109.23), 50‑day average ($102.65), and 200‑day average ($109.63); the 12‑day EMA itself shows a dip‑and‑reversal, reinforcing a constructive short‑term regime versus medium‑term averages. Ichimoku components place price above the cloud (SenkouB $109.14), supporting trend bias.
MRO at 38.77 (positive with a dip‑and‑reversal) indicates price currently trades above the modeled target, implying pullback risk if momentum stalls; treat that as a mean‑reversion pressure layered against the bullish directional signals.
RSI at 56.16 with a dip‑and‑reversal signals modest bullish momentum without overbought extremes, consistent with room for additional appreciation before technical exhaustion.
Fundamental Analysis
Profitability and margins: EBIT registers at $478,700,000 and EBIT margin equals 9.62%. That margin sits slightly above the industry peer mean (9.28%) and well above the peer median (5.919%), reflecting recent margin expansion despite a quarter‑to‑quarter contraction: EBIT margin QoQ declined -24.50% while EBIT margin YoY rose 0.14%.
Earnings: Reported EPS came in at $1.74 versus an estimate of $1.54, producing an EPS surprise of approximately 13.0%. Forward EPS stands at $1.91 with forward P/E near 57.72x; the trailing P/E at 58.85x remains below the industry peer mean P/E (84.00x), indicating a valuation gap even with elevated multiples.
Valuation multiples: Price‑to‑book equals 5.65x, below the industry peer mean of 6.57x but above the peer median of 3.34x. Price‑to‑sales reads 3.98x and the enterprise multiple sits at 40.25x (near the lower half of the peer range). Free cash flow equals $391.1M with a free cash flow yield of 1.98%, which registers above the peer mean yield in the provided comparison set.
Growth and efficiency: Total revenue equals $4,975,800,000 with reported revenue growth at -8.71% (year‑over‑year). Asset turnover stands at 0.3647, roughly in line with the peer mean (0.3843). Operating cash flow reached $644.0M and free cash conversion shows cash flow to earnings of 168% (1.676x), supporting internal funding for capex and buybacks.
Balance sheet and leverage: Cash and short‑term investments total $1,007,300,000 while total debt equals $7,593,300,000 and net debt comes to $1,925,300,000. Debt‑to‑equity sits at 2.17x and debt‑to‑EBITDA equals 11.58x; interest coverage remains robust at 29.37x, indicating ample earnings cushion versus interest expense even as leverage ratios exceed some peer medians.
Operational metrics: Inventory stands at $2,470,800,000 with days inventory outstanding near 68.3 and a cash conversion cycle of 25.76 days. Management reported conversion of hundreds of stores to a multi‑price format and planned store growth, which links directly to the observed margin expansion and cash generation.
Valuation view: The current valuation as determined by WMDST labels the stock under‑valued; upside catalysts include margin resiliency from the multi‑price rollout, repurchase activity, and continued cash flow generation, while elevated leverage metrics and MRO‑implied overextension create near‑term reversion risk.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-04-30 |
| REPORT DATE: | 2026-05-28 |
| NEXT REPORT DATE: | 2026-08-27 |
| CASH FLOW | Begin Period Cash Flow | $ 760.7 M |
| Operating Cash Flow | $ 644.0 M | |
| Capital Expenditures | $ -252.90 M | |
| Change In Working Capital | $ -24.60 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 290.0 M | |
| End Period Cash Flow | $ 1.1 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 5.0 B | |
| Forward Revenue | $ 1.3 B | |
| COSTS | ||
| Cost Of Revenue | $ 3.1 B | |
| Depreciation | $ 177.0 M | |
| Depreciation and Amortization | $ 177.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 4.5 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.8 B | |
| EBITDA | $ 655.7 M | |
| EBIT | $ 478.7 M | |
| Operating Income | $ 473.3 M | |
| Interest Income | — | |
| Interest Expense | $ 16.3 M | |
| Net Interest Income | $ -16.30 M | |
| Income Before Tax | $ 462.4 M | |
| Tax Provision | $ 115.1 M | |
| Tax Rate | 24.892 % | |
| Net Income | $ 347.3 M | |
| Net Income From Continuing Operations | $ 347.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.54 | |
| EPS Actual | $ 1.74 | |
| EPS Difference | $ 0.20 | |
| EPS Surprise | 12.987 % | |
| Forward EPS | $ 1.91 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 13.8 B | |
| Intangible Assets | $ 423.0 M | |
| Net Tangible Assets | $ 3.1 B | |
| Total Current Assets | $ 3.7 B | |
| Cash and Short-Term Investments | $ 1.0 B | |
| Cash | $ 1.0 B | |
| Net Receivables | — | |
| Inventory | $ 2.5 B | |
| Long-Term Investments | $ 194.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 1.6 B | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 3.2 B | |
| Net Debt | $ 1.9 B | |
| Total Debt | $ 7.6 B | |
| Total Liabilities | $ 10.3 B | |
| EQUITY | ||
| Total Equity | $ 3.5 B | |
| Retained Earnings | $ 3.6 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 18.13 | |
| Shares Outstanding | 193.393 M | |
| Revenue Per-Share | $ 25.73 | |
| VALUATION | Market Capitalization | $ 19.8 B |
| Enterprise Value | $ 26.4 B | |
| Enterprise Multiple | 40.246 | |
| Enterprise Multiple QoQ | 14.665 % | |
| Enterprise Multiple YoY | 0.234 % | |
| Enterprise Multiple IPRWA | high: 70.906 mean: 53.991 median: 44.501 DLTR: 40.246 low: 35.024 |
|
| EV/R | 5.304 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.942 | |
| Asset To Liability | 1.34 | |
| Debt To Capital | 0.684 | |
| Debt To Assets | 0.549 | |
| Debt To Assets QoQ | 4.836 % | |
| Debt To Assets YoY | 27.059 % | |
| Debt To Assets IPRWA | DLTR: 0.549 high: 0.498 mean: 0.35 median: 0.325 low: 0.304 |
|
| Debt To Equity | 2.165 | |
| Debt To Equity QoQ | 15.228 % | |
| Debt To Equity YoY | 6.92 % | |
| Debt To Equity IPRWA | DLTR: 2.165 high: 1.786 median: 1.149 mean: 1.066 low: 0.749 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.647 | |
| Price To Book QoQ | -11.75 % | |
| Price To Book YoY | 29.196 % | |
| Price To Book IPRWA | high: 10.901 mean: 6.574 DLTR: 5.647 median: 3.345 low: 0.398 |
|
| Price To Earnings (P/E) | 58.85 | |
| Price To Earnings QoQ | 24.473 % | |
| Price To Earnings YoY | -8.695 % | |
| Price To Earnings IPRWA | high: 105.986 mean: 84.0 median: 70.603 DLTR: 58.85 low: -109.011 |
|
| PE/G Ratio | -1.837 | |
| Price To Sales (P/S) | 3.98 | |
| Price To Sales QoQ | -9.709 % | |
| Price To Sales YoY | 8.196 % | |
| Price To Sales IPRWA | high: 11.435 mean: 6.629 DLTR: 3.98 median: 2.412 low: 0.506 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 57.723 | |
| Forward PE/G | -1.802 | |
| Forward P/S | 14.978 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.568 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.365 | |
| Asset Turnover Ratio QoQ | -9.273 % | |
| Asset Turnover Ratio YoY | 45.15 % | |
| Asset Turnover Ratio IPRWA | high: 0.433 median: 0.386 mean: 0.384 DLTR: 0.365 low: 0.239 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | 1.265 | |
| Inventory Turnover Ratio QoQ | 2.155 % | |
| Inventory Turnover Ratio YoY | 13.832 % | |
| Inventory Turnover Ratio IPRWA | high: 1.509 median: 1.467 mean: 1.387 DLTR: 1.265 low: 0.639 |
|
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 25.757 | |
| Cash Conversion Cycle Days QoQ | -19.962 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 44.239 DLTR: 25.757 mean: 17.198 low: 8.351 median: 8.351 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 9.681 | |
| CapEx To Revenue | -0.051 | |
| CapEx To Depreciation | -1.429 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 6.4 B | |
| Net Invested Capital | $ 6.4 B | |
| Invested Capital | $ 6.4 B | |
| Net Tangible Assets | $ 3.1 B | |
| Net Working Capital | $ 514.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.316 | |
| Current Ratio | 1.161 | |
| Current Ratio QoQ | 8.807 % | |
| Current Ratio YoY | 11.279 % | |
| Current Ratio IPRWA | high: 2.098 median: 1.482 mean: 1.318 DLTR: 1.161 low: 0.932 |
|
| Quick Ratio | 0.386 | |
| Quick Ratio QoQ | 30.904 % | |
| Quick Ratio YoY | -46.115 % | |
| Quick Ratio IPRWA | high: 1.271 mean: 0.631 DLTR: 0.386 median: 0.306 low: 0.253 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 11.58 | |
| Cost Of Debt | 0.167 % | |
| Interest Coverage Ratio | 29.368 | |
| Interest Coverage Ratio QoQ | -23.472 % | |
| Interest Coverage Ratio YoY | 49.541 % | |
| Interest Coverage Ratio IPRWA | high: 111.165 mean: 55.382 DLTR: 29.368 median: 13.517 low: 0.73 |
|
| Operating Cash Flow Ratio | 0.183 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 42.584 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.656 % | |
| Revenue Growth | -8.713 % | |
| Revenue Growth QoQ | -159.163 % | |
| Revenue Growth YoY | -95.48 % | |
| Revenue Growth IPRWA | high: -1.139 % DLTR: -8.713 % median: -9.419 % mean: -11.955 % low: -38.778 % |
|
| Earnings Growth | -32.031 % | |
| Earnings Growth QoQ | -128.709 % | |
| Earnings Growth YoY | -20.487 % | |
| Earnings Growth IPRWA | high: 3.627 % median: 1.0 % mean: -13.755 % DLTR: -32.031 % low: -112.15 % |
|
| MARGINS | ||
| Gross Margin | 36.874 % | |
| Gross Margin QoQ | -5.869 % | |
| Gross Margin YoY | 3.518 % | |
| Gross Margin IPRWA | high: 43.101 % DLTR: 36.874 % mean: 30.431 % median: 29.613 % low: 29.014 % |
|
| EBIT Margin | 9.621 % | |
| EBIT Margin QoQ | -24.5 % | |
| EBIT Margin YoY | 0.135 % | |
| EBIT Margin IPRWA | high: 14.06 % DLTR: 9.621 % mean: 9.284 % median: 5.919 % low: 1.452 % |
|
| Return On Sales (ROS) | 9.512 % | |
| Return On Sales QoQ | -25.367 % | |
| Return On Sales YoY | -0.999 % | |
| Return On Sales IPRWA | high: 13.377 % DLTR: 9.512 % mean: 8.976 % median: 5.919 % low: 1.452 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 391.1 M | |
| Free Cash Flow Yield | 1.975 % | |
| Free Cash Flow Yield QoQ | -51.005 % | |
| Free Cash Flow Yield YoY | 43.95 % | |
| Free Cash Flow Yield IPRWA | DLTR: 1.975 % high: 1.562 % median: 0.912 % mean: 0.431 % low: -9.867 % |
|
| Free Cash Growth | -59.618 % | |
| Free Cash Growth QoQ | -90.538 % | |
| Free Cash Growth YoY | -25.595 % | |
| Free Cash Growth IPRWA | high: -31.902 % median: -37.354 % DLTR: -59.618 % mean: -62.942 % low: -123.032 % |
|
| Free Cash To Net Income | 1.126 | |
| Cash Flow Margin | 11.697 % | |
| Cash Flow To Earnings | 1.676 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 2.545 % | |
| Return On Assets QoQ | -31.806 % | |
| Return On Assets YoY | 36.902 % | |
| Return On Assets IPRWA | high: 4.179 % mean: 2.613 % DLTR: 2.545 % median: 1.418 % low: -0.106 % |
|
| Return On Capital Employed (ROCE) | 4.499 % | |
| Return On Equity (ROE) | 0.099 | |
| Return On Equity QoQ | -26.525 % | |
| Return On Equity YoY | 12.611 % | |
| Return On Equity IPRWA | high: 0.103 DLTR: 0.099 mean: 0.071 median: 0.05 low: -0.003 |
|
| DuPont ROE | 9.565 % | |
| Return On Invested Capital (ROIC) | 5.583 % | |
| Return On Invested Capital QoQ | -34.256 % | |
| Return On Invested Capital YoY | 23.956 % | |
| Return On Invested Capital IPRWA | high: 8.956 % mean: 5.638 % DLTR: 5.583 % median: 3.573 % low: 0.7 % |
|