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Dollar Tree

DT3.DE
55
Discount Stores · Consumer Defensive
Price
€112.52
+2.58 (+2.35%)
Market Cap
€21.62B
Exchange
Frankfurt Stock Exchange
Winston Score
55
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Apr 30, 2026
How the score breaks down
Quality
Good
Growth
Good
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. operates two chains of discount retail stores across the United States and Canada. The Dollar Tree banner sells everyday items — snacks, cleaning supplies, party goods, and seasonal products — mostly at fixed low price points, while the Family Dollar banner targets low-income shoppers with a broader mix of household essentials and groceries. It is one of the largest discount retailers in North America, with roughly 16,000 stores combined.

The company makes money by selling high volumes of merchandise at thin margins, relying on store count and customer traffic rather than premium pricing. Most revenue comes from the United States, with a smaller presence in Canada. Dollar Tree's main competitive advantage is its dense store network and its appeal to budget-conscious shoppers, which tends to hold up during economic downturns. The biggest risk facing the business is the ongoing turnaround of the Family Dollar chain, which has struggled with profitability and recently prompted the company to explore selling or spinning off that segment.

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
9.1%
Modest — 9.1% operating margin
Return on the money invested
ROCE
22.8%
Exceptional — 22.8% 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
+24.5%
Earnings growing fast (+24.5% YoY)

Healthy double-digit earnings growth — what compounders look like.

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
177%
Turns 177% of profit into real cash
Spare cash per sale
FCF Margin
5.5%
Thin free cash flow (5.5%)

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
21.45x
Comfortably covers interest (21.5x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
17.9x
Fair value — P/E 17.9

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
+2.0
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Not applicable for this business.
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