Starboard's Quest for a Family Dollar Deal, Multiple Price Points at Dollar Tree Could Add Value
We do not plan to change our $89 per share fair value estimate for no-moat Dollar Tree after activist investor Starboard's push for a Family Dollar divestiture and the introduction of more price points at Dollar Tree-bannered stores. However, the move, which came as the fund nominated a slate of seven new directors to the board, could add value if the efforts succeed, though we view the high end of Starboard's $120-$150 per share valuation range of outcomes as somewhat optimistic.With about a 1...
Dollar Tree is an operator of discount variety stores. The company's stores operate under the names of Dollar Tree, Family Dollar and Dollar Tree Canada. The company's segments are: Dollar Tree, which is the operator of discount variety stores providing merchandise at the fixed price point of $1.00; and Family Dollar, which operates general merchandise discount retail stores. The merchandise mix in the company's Dollar Tree stores consists of consumable merchandise, variety merchandise, and seasonal goods. The merchandise mix in the company's Family Dollar stores consists of consumable merchandise, home products, apparel and accessories merchandise, and seasonal and electronics merchandise.
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Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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