GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Dollar Tree Inc (STU:DT3) » Definitions » Piotroski F-Score

Dollar Tree (STU:DT3) Piotroski F-Score : 6 (As of Dec. 15, 2024)


View and export this data going back to . Start your Free Trial

What is Dollar Tree Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Dollar Tree has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Dollar Tree's Piotroski F-Score or its related term are showing as below:

STU:DT3' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 6

During the past 13 years, the highest Piotroski F-Score of Dollar Tree was 9. The lowest was 3. And the median was 6.


Dollar Tree Piotroski F-Score Historical Data

The historical data trend for Dollar Tree's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dollar Tree Piotroski F-Score Chart

Dollar Tree Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 8.00 4.00 8.00 5.00

Dollar Tree Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 4.00 6.00 6.00

Competitive Comparison of Dollar Tree's Piotroski F-Score

For the Discount Stores subindustry, Dollar Tree's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Dollar Tree's Piotroski F-Score Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Dollar Tree's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Oct24) TTM:Last Year (Oct23) TTM:
Net Income was -1569.596 + 279.693 + 122.073 + 214.169 = €-954 Mil.
Cash Flow from Operations was 1151.998 + 648.392 + 282.962 + 721.181 = €2,805 Mil.
Revenue was 7931.428 + 7113.77 + 6803.254 + 6947.608 = €28,796 Mil.
Gross Profit was 2550.663 + 2194.021 + 2047.393 + 2151.7 = €8,944 Mil.
Average Total Assets from the begining of this year (Oct23)
to the end of this year (Oct24) was
(22757.546 + 20217.573 + 20606.706 + 20852.505 + 21419.51) / 5 = €21170.768 Mil.
Total Assets at the begining of this year (Oct23) was €22,758 Mil.
Long-Term Debt & Capital Lease Obligation was €7,353 Mil.
Total Current Assets was €6,088 Mil.
Total Current Liabilities was €5,887 Mil.
Net Income was 419.642 + 272.688 + 181.162 + 200.764 = €1,074 Mil.

Revenue was 7164.81 + 6679.306 + 6622.071 + 6927.116 = €27,393 Mil.
Gross Profit was 2217.92 + 2038.046 + 1934.47 + 2063.229 = €8,254 Mil.
Average Total Assets from the begining of last year (Oct22)
to the end of last year (Oct23) was
(23253.142 + 21364.509 + 21075.043 + 21178.912 + 22757.546) / 5 = €21925.8304 Mil.
Total Assets at the begining of last year (Oct22) was €23,253 Mil.
Long-Term Debt & Capital Lease Obligation was €8,490 Mil.
Total Current Assets was €5,968 Mil.
Total Current Liabilities was €4,402 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Dollar Tree's current Net Income (TTM) was -954. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Dollar Tree's current Cash Flow from Operations (TTM) was 2,805. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Oct23)
=-953.661/22757.546
=-0.04190527

ROA (Last Year)=Net Income/Total Assets (Oct22)
=1074.256/23253.142
=0.04619832

Dollar Tree's return on assets of this year was -0.04190527. Dollar Tree's return on assets of last year was 0.04619832. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Dollar Tree's current Net Income (TTM) was -954. Dollar Tree's current Cash Flow from Operations (TTM) was 2,805. ==> 2,805 > -954 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Oct24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct23 to Oct24
=7353.364/21170.768
=0.34733572

Gearing (Last Year: Oct23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct22 to Oct23
=8489.855/21925.8304
=0.38720791

Dollar Tree's gearing of this year was 0.34733572. Dollar Tree's gearing of last year was 0.38720791. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Oct24)=Total Current Assets/Total Current Liabilities
=6087.717/5887.409
=1.03402312

Current Ratio (Last Year: Oct23)=Total Current Assets/Total Current Liabilities
=5968.089/4401.561
=1.35590283

Dollar Tree's current ratio of this year was 1.03402312. Dollar Tree's current ratio of last year was 1.35590283. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Dollar Tree's number of shares in issue this year was 215.2. Dollar Tree's number of shares in issue last year was 219.2. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=8943.777/28796.06
=0.3105903

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=8253.665/27393.303
=0.30130229

Dollar Tree's gross margin of this year was 0.3105903. Dollar Tree's gross margin of last year was 0.30130229. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Oct23)
=28796.06/22757.546
=1.26534118

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Oct22)
=27393.303/23253.142
=1.17804738

Dollar Tree's asset turnover of this year was 1.26534118. Dollar Tree's asset turnover of last year was 1.17804738. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+1+0+1+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Dollar Tree has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Dollar Tree  (STU:DT3) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Dollar Tree Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Dollar Tree's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Dollar Tree Business Description

Address
500 Volvo Parkway, Chesapeake, VA, USA, 23320
Dollar Tree operates discount stores across the United States and Canada, with over 8,600 shops under its namesake banner and nearly 7,800 under Family Dollar. About 47% of Dollar Tree's sales in fiscal 2023 were composed of consumables (including food, health and beauty, and cleaning products), around 45% from variety items (including toys and homewares), and over 5% from seasonal items. The Dollar Tree banner sells most of its merchandise at the $1.25 price point and positions its stores in well-populated suburban markets. Conversely, Family Dollar primarily sells consumable merchandise (80% of the banner's sales) at prices below $10. About two-thirds of Family Dollar's stores are located in urban and suburban markets, with the remaining one-third located in rural areas.

Dollar Tree Headlines

No Headlines