Is the business good?
How good a business is DLTR?
Dollar Tree earns 25% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
25%
Return on invested capital · cost of capital 9.0% · 16 points above what the capital costs: growth creates value
- Operating margin
- 8.8%
Operating margin · Discount Stores median 4.5% · 12 months to Q1 2026
- Cash conversion
- 1.02×
Cash conversion · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −7.7%
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 Q1 2026
- 37%
- Operating margin12 months to Q1 2026
- 8.8%
- Net margin12 months to Q1 2026
- 6.5%
- Free cash flow margin
- 6.7%
- Revenue, trailing twelve months
- $19.7B
- Free cash flow, trailing twelve months
- $1.32B
- Net income, trailing twelve months
- $1.29B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 25%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.