Dollar Tree, Inc. (DLTR) AI Stock Analysis

Dollar Tree, Inc. operates a network of discount variety retail stores under two distinct segments: Dollar Tree and Family Dollar. The Dollar Tree segment specializes in merchandise priced at $1.25 or less, offering consumables such as food, health, personal care, and household essentials, along with seasonal goods, toys, and party supplies. As of January 29, 2022, Dollar Tree operated 8,061 stores across the United States and Canada. The Family Dollar segment operates as a general merchandise discount retailer providing groceries, household chemicals, apparel, electronics, and home decor, operating 8,016 stores and 11 distribution centers as of January 29, 2022.

Revenue increased 10.4% in FY2026 to $19.41B, up from $17.58B in FY2025 and $16.78B in FY2024. Over a five-year period from FY2021 to FY2026, revenue CAGR was -5.3%, following a revenue decline of 41.4% in FY2023. Gross margin reached 36.4% in FY2026, while operating margin stood at 8.5%. Net income rebounded to $1.28B in FY2026 after net losses of -$3.03B in FY2025 and -$998.4M in FY2024. For the latest quarter ended July 31, 2026, quarterly revenue grew 7.0% year-over-year, while quarterly earnings expanded by 197.2%. Trailing twelve months revenue stands at $20.07B with an operating margin of 6.2%.

As of July 31, 2026, Dollar Tree held $1.06B in cash and short-term investments against total debt of $7.67B, resulting in net debt of $6.61B. Shareholders' equity was $3.43B on total assets of $14.03B, yielding a debt-to-equity ratio of 2.24 and a current ratio of 1.13. In FY2026, operating cash flow reached $2.53B and free cash flow was $1.40B. Cash deployment in FY2026 included $1.13B for capital expenditures and $1.55B dedicated to share buybacks, contributing to a 15.5% reduction in share count over five years.

DLTR trades at a trailing P/E of 15.1x, which is below the 23.5x median of its S&P 500 Consumer Defensive peers. Its forward P/E is 16.9x compared to the peer median of 15.2x. The enterprise value of $27.84B results in an EV/EBITDA multiple of 9.6x, lower than the peer median of 14.8x, and an EV/revenue multiple of 1.4x. Over the past year, the stock gained 32.1%, outperforming the S&P 500 benchmark return of 16.8%, though its five-year return of 25.1% trails the broader market's 83.0% gain.

Consensus ratings include 8 Strong Buy, 3 Buy, 14 Hold, 3 Sell, and 1 Strong Sell. The mean price target of $135.38 indicates an upside of 9.0% over the last close of $124.18. For the current fiscal year ending January 31, 2027, analysts project EPS of $7.93 and revenue of $20.69B. For the subsequent year, 29 analysts forecast revenue of $21.94B and EPS of $7.91. Dollar Tree has beaten EPS estimates in each of the last 4 quarters, with its next earnings announcement scheduled for December 2, 2026.

This page is an AI-written research summary of Dollar Tree, Inc. (DLTR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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