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Dollar Tree

DLTR
49
Discount Stores · Consumer Defensive
Also trades as: 0IC8.L
Price
$131.48
+3.03 (+2.36%)
Market Cap
$25.27B
Exchange
NASDAQ
Winston Score
49
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through May 2, 2026
How the score breaks down
Quality
Good
Growth
Mixed
Cash Flow
Strong
Stability
Strong
Valuation
Good

Share count falling — buybacks

9.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 229.0M (2022) → 206.3M (2026)

Winston Score History

The full picture

Dollar Tree, Inc. runs a chain of discount retail stores across the United States and Canada. Its two main store brands are Dollar Tree, where most items traditionally sold for $1 (now up to $1.25 or more), and Family Dollar, which sells everyday essentials like food, cleaning supplies, and clothing at low prices. The company serves budget-conscious shoppers, particularly in lower-income communities, and is one of the largest discount retailers in North America.

Dollar Tree makes money by selling high volumes of low-priced merchandise directly to consumers in its roughly 16,000 stores. It operates almost entirely in the US and Canada, giving it a wide physical footprint that is hard for competitors to quickly replicate. The company completed the sale of its Family Dollar segment in 2024, refocusing on its core Dollar Tree banner — that strategic shift is the key factor investors are watching to see if it can improve profitability and store performance going forward.

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Score breakdown

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Quality

Profit per sale
Gross Margin
36.9%
Modest — 36.9% gross margin
Profit after running costs
Operating Margin
9.5%
Modest — 9.5% operating margin
Return on the money invested
ROCE
22.7%
Exceptional — 22.7% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
-19.7%
Shrinking sales (-19.7% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
209%
Turns 209% of profit into real cash
Spare cash per sale
FCF Margin
7.9%
Modest free cash flow (7.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
1.12
Elevated debt (1.12)
Covers its interest
Interest Cover
21.33x
Comfortably covers interest (21.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
20.5x
Growth-priced — P/E 20.5

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+5.5
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (20.5 → 15.0)

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Dividends

Not applicable for this business.
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