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Stock

Dollar Tree

DLTR
56
Discount Stores · Consumer Defensive
Also trades as: 0IC8.L GBP 1.24 (-5.39%)
Price
$124.04
-7.38 (-5.62%)
Market Cap
$23.84B
Exchange
NASDAQ
Winston Score
56
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Sep 9, 2026 · filings through Aug 1, 2026

§How the score breaks down

Quality
Strong
Growth
Mixed
Cash Flow
Strong
Stability
Strong
Valuation
Mixed

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
42.9%
Healthy — 42.9% gross margin
Profit after running costs
Operating Margin
14.1%
Healthy — 14.1% operating margin
Return on the money invested
ROCE
33.9%
Exceptional — 33.9% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
-7.8%
Shrinking sales (-7.8% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
186%
Turns 186% of profit into real cash
Spare cash per sale
FCF Margin
9.2%
Modest free cash flow (9.2%)

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
0.86
Moderate — manageable debt (0.86)
Covers its interest
Interest Cover
29.08x
Comfortably covers interest (29.1x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
15.1x
Fair value — P/E 15.1

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
-0.4
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.
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