Decoding 15 Analyst Evaluations For Dollar Tree

Dollar Tree (NASDAQ:DLTR) has been analyzed by 15 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

In the assessment of 12-month price targets, analysts unveil insights for Dollar Tree, presenting an average target of $143.6, a high estimate of $160.00, and a low estimate of $120.00. Observing a downward trend, the current average is 5.75% lower than the prior average price target of $152.36.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Dollar Tree among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Dollar Tree. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Dollar Tree compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Dollar Tree's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Capture valuable insights into Dollar Tree's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Dollar Tree analyst ratings.

Discovering Dollar Tree: A Closer Look

Dollar Tree operates discount stores across the United States and Canada, with over 8,400 shops under its namesake banner and 8,350 under Family Dollar. About 47% of Dollar Tree's sales in fiscal 2023 were composed of consumables (including food, health and beauty, and cleaning products), around 45% from variety items (including toys and homewares), and over 5% from seasonal items. The Dollar Tree banner sells most of its merchandise at the $1.25 price point and positions its stores in well-populated suburban markets. Conversely, Family Dollar primarily sells consumable merchandise (80% of the banner's sales) at prices below $10. About two-thirds of Family Dollar's stores are located in urban and suburban markets, with the remaining one-third located in rural areas.

Key Indicators: Dollar Tree's Financial Health

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Dollar Tree showcased positive performance, achieving a revenue growth rate of 4.22% as of 30 April, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.

Net Margin: Dollar Tree's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 3.93%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 4.1%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Dollar Tree's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.36%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Dollar Tree's debt-to-equity ratio is below the industry average at 1.42, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.