# Dollar Tree Inc. (DLTR) — Stock CV

Dollar Tree Inc. is a $22.3B consumer company. Revenue shrank 15.7% over the last year, it keeps 8¢ of every dollar of sales as profit, and its net debt equals ~1.7 years of free cash flow. It trades at 13.8× earnings — near the lowest of its own history.

> Founded in 1986, Dollar Tree operates almost 9,000 small-box discount stores across the United States and Canada, offering roughly 85% of its merchandise under $2. The chain targets value-conscious suburban and urban shoppers with a mix of consumables (49% of sales), variety (45%), and seasonal goods (6%).

## Identity

- **Ticker**: DLTR
- **Sector**: Consumer Cyclical
- **Industry**: Retail-Variety Stores
- **Headquarters**: CHESAPEAKE, VA
- **Employees**: 153 032
- **Website**: https://www.dollartree.com
- **Market cap**: $22.3B
- **Last price**: $118.64
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $44.1B
- **Net income**: $3.35B
- **Free cash flow**: $3.85B
- **Net debt**: $6.61B
- **P/E**: 13.8
- **Revenue growth (YoY)**: -15.7%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 100 |
| Growth | 0 |
| Profitability | 62 |
| Health | 60 |
| Quality | 90 |
| Moat | 68 |

## Qualifications (beginner checklist) — 8 of 10 passed

- [ ] Revenue growing — -15.7% YoY
- [x] Profitable — $3.35B TTM
- [ ] Profit growing — -4.8% YoY
- [x] Generates cash — $3.85B TTM
- [x] Debt under control — ~1.7y of cash flow to repay
- [x] Established company — $22.3B market cap
- [x] Not printing shares — -16.2% shares over ~5y
- [x] Proven track record — 10/12 profitable years
- [x] Financially stable — Altman Z 2.5 — grey
- [x] Valuation not extreme — P/E 13.8

## Experience (career milestones)

- **2024** — A new format: the More Choices (internally known as a "3.0") was established, integrating the price points…
- **2024** — Dollar Tree acquired the lease of 170 99 Cents Only Stores locations across all states it operated in,…
- **FY2022** — Best year on record: $4.21B net income
- **FY2016** — First recorded profitable year: $2.11B net income
- **FY2016** — Revenue already above $50B: $51.0B in first reported year
- **FY2016** — Positive free cash flow every year since: 12-year streak
- **2015** — The firm agreed to sell 330 stores to private equity company Sycamore Partners as part of the approval…
- **Jul 28, 2014** — Dollar Tree announced that a deal had been reached and approved by both parties to purchase Family…
- **2010** — The corporation opened its 4,000th chain store and acquired 86 Canadian Dollar Giant stores which are based…
- **2006** — Dollar Tree celebrated its 20th year of retailing at a $1.00 price point, opened its 3,000th store
- **2004** — Dollar Tree opened its first store in North Dakota which marked its operation of stores in all 48…
- **2003** — Dollar Tree acquired Salt Lake City, Utah-based Greenbacks, Inc
- **1999** — Dollar Tree acquired Only $One stores based in New York
- **1996** — Dollar Tree acquired Dollar Bill$, Inc., a Chicago-based chain of 136 stores

## Strengths

- Interest covered 20.1× by operating earnings

## Watch-outs

- Revenue shrinking 15.7% year over year
- Net debt would take ~5.0 years of free cash flow to repay
- Loss-making in 3 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2023 | $74.1B | $749M | $1.13B |
| FY2024 | $62.8B | -$1.63B | $1.53B |
| FY2025 | $47.2B | $2.93B | $1.42B |
| FY2026 | $48.2B | $3.27B | $3.13B |
| FY2027 | $14.8B | $1.21B | $1.46B |

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Source: https://stockcv.com/DLTR — derived from company filings; may be delayed or incomplete. Information, not investment advice.