Dollar Tree, Inc. [NASDAQ:DLTR]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Dollar Tree, Inc. [DLTR], the latest consensus recommendation available followed its financial results for the fiscal quarter ending 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 104.19. This is compared to its latest closing price of $103.84.
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 2.00. This is compared to 1 month ago, when its average rating was 1.96.
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.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Thu 30 May (In 79 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 +7.83 and its Gross Margin at +30.44, this company’s Net Margin is now 7.50%. 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 15.70, and its Return on Invested Capital has reached 11.20%. Its Return on Equity is -24.81, and its Return on Assets is -10.61. These metrics all suggest that Dollar Tree, Inc. is doing well at using the money it earns to generate returns.
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 31.59. 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 11.71 and its Total Debt to EBITDA Value is 1.77. The Enterprise Value to Sales for this firm is now 1.24, and its Total Debt to Enterprise Value stands at 0.16. companyname [DLTR] has a Price to Cash Flow Ratio of 13.03.
Similarly, this company’s Total Asset Turnover is 1.52. 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 239.74M shares outstanding, amounting to a total market cap of $24.89B. Its stock price has been found in the range of 78.78 to 104.19. At its current price, it has moved by -1.55% from its 52-week high, and it has moved 30.20% from its 52-week low.
This stock’s Beta value is currently 0.39, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 64.02. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Dollar Tree, Inc. [DLTR] a Reliable Buy?
Shares of Dollar Tree, Inc. [DLTR], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.