Dollar Tree, Inc. [NASDAQ:DLTR]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Dollar Tree, Inc. [DLTR], the latest average analyst recommendation we can see is from the quarter closing in January. On average, stock market experts give DLTR an Outperform rating. Its stock price has been found in the range of 78.78 to 111.61. This is compared to its latest closing price of $100.89.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Dollar Tree, Inc. [DLTR] is sitting at 2.04. This is compared to 1 month ago, when its average rating was 2.04.
For the quarter ending in Jan-19 Dollar Tree, Inc. [DLTR] generated $6.21 billion in sales. That’s 0.27% higher than the average estimate of $6.19 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Thu 30 May (In 13 Days).
Fundamental Analysis of Dollar Tree, Inc. [DLTR]
Now let’s turn to look at profitability: with a current Operating Margin for Dollar Tree, Inc. [DLTR] sitting at +7.92 and its Gross Margin at +30.15, this company’s Net Margin is now -7.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 15.87, and its Return on Invested Capital has reached -12.20%. Its Return on Equity is -24.81, and its Return on Assets is -10.55. These metrics suggest that this Dollar Tree, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Dollar Tree, Inc. [DLTR] has generated a Total Debt to Total Equity ratio of 75.59. Similarly, its Total Debt to Total Capital is 43.05, while its Total Debt to Total Assets stands at 31.21. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 75.59, and its Long-Term Debt to Total Capital is 43.05. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 11.80 and its Total Debt to EBITDA Value is 1.76. The Enterprise Value to Sales for this firm is now 1.26, and its Total Debt to Enterprise Value stands at 0.16. Dollar Tree, Inc. [DLTR] has a Price to Book Ratio of 4.08, a Price to Cash Flow Ratio of 13.03.
Shifting the focus to workforce efficiency, Dollar Tree, Inc. [DLTR] earns $125,334 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 238.61 and its Total Asset Turnover is 1.51. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.36 and its Current Ratio is 2.05. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Dollar Tree, Inc. [DLTR] has 242.24M shares outstanding, amounting to a total market cap of $24.44B. Its stock price has been found in the range of 78.78 to 111.61. At its current price, it has moved by -9.96% from its 52-week high, and it has moved 27.56% from its 52-week low.
This stock’s Beta value is currently 0.47, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 36.28. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Dollar Tree, Inc. [DLTR] a Reliable Buy?
Dollar Tree, Inc. [DLTR] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.