DLTRDollar Tree
Is the business good?
A genuinely good business: earnings fully cash-backed (1.9×) and margins widening.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 8% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is DLTR?
Dollar Tree earns 33% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 24 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Discount Stores median 4.5% · 12 months to Q2 2026
- Cash conversion
- 1.88×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- −8.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 7.4% |
| FY2021 | 6.9% |
| FY2022 | 14% |
| FY2023 | 11% |
| FY2024 | 8.3% |
| FY2025 | 8.5% |
Details›
- Gross margin12 months to Q2 2026
- 39%
- Operating margin12 months to Q2 2026
- 11%
- Net margin12 months to Q2 2026
- 8.0%
- Free cash flow margin
- 9.9%
- Revenue, trailing twelve months
- $20.1B
- Free cash flow, trailing twelve months
- $1.98B
- Net income, trailing twelve months
- $1.61B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 33%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Consumer Defensive
Ranks #55 of 131 by RyuScore