Report
Zain Akbari
EUR 100.00 For Business Accounts Only

While Competition Is Fierce, Dollar Tree Can Boost Margins as Family Dollar Improves

We do not plan a large change for our $89 per share valuation for no-moat Dollar Tree after it announced a solid start to fiscal 2019 and still expect mid-single-digit yearly top-line expansion against high-single-digit adjusted operating margins over the next decade. With the shares trading higher than our valuation, we suggest investors await a more attractive entry point.
Dollar Tree saw sales rise by 5% on 2.5% and 1.9% comparable sales growth for the namesake and Family Dollar banners, resp...
Underlying
Dollar Tree Inc.

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.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

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.

We have operations in 27 countries.

Analysts
Zain Akbari

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