Dollar TreeDLTR +4.79%76 Interest Coverage is 29.04 as of Apr. 2026, which is 153% above its 10-year median of 11.48. GuruFocus rates DLTR with a GF Score™ of 76/100 and a GF Value™ of $145.99 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 255 Retail - Defensive companies, Dollar Tree ranks better than 68.63% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Dollar Tree's
Operating Income
for the
three
months ended in Apr. 2026 was $473 Mil. Dollar Tree's Interest Expense for the
three
months ended in Apr. 2026 was $-16 Mil.
Dollar Tree's interest coverage for the quarter that ended in Apr. 2026 was 29.04.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Dollar Tree's Interest Coverage or its related term are showing as below:
DLTR'
s Interest Coverage Range Over the Past 10 Years
Min: 4.54 Med: 11.48 Max: 22.03
Current: 22.03
DLTR's Interest Coverage is ranked better than 68.63% of 255
companies
in the Retail - Defensive industry
Industry Median: 8.8
vs DLTR: 22.03
Dollar Tree (NAS:DLTR) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Dollar Tree Interest Coverage Related Terms
Dollar Tree Interest Coverage Historical Data
* Premium members only.
The historical data trend for Dollar Tree's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
DLTR vs DG, BJ, PSMT: Interest Coverage Comparison
For the Discount Stores subindustry, Dollar Tree's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Dollar Tree's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Dollar Tree (DLTR) has a Interest Coverage of 29.04 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Dollar Tree and its competitors. This is 153% above median its historical median of 11.48. Over the past decade, Dollar Tree's Interest Coverage has ranged from 4.54 to 22.03. According to the industry distribution chart, Dollar Tree ranks #80 out of 255 companies in the Retail - Defensive industry, placing it in the top 31.4%.
Is Dollar Tree's Interest Coverage too high?
Dollar Tree's current Interest Coverage of 29.04 is 153% above median its 10-year median of 11.48. Over the past 10 years, this metric has ranged from a low of 4.54 to a high of 22.03. The Retail - Defensive industry median Interest Coverage is 8.80. Dollar Tree's value of 29.04 is 230% above this industry median. Based on the distribution chart, Dollar Tree ranks #80 out of 255 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Dollar Tree has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dollar Tree's Interest Coverage compare to DG and BJ?
According to the Retail - Defensive industry distribution chart, Dollar Tree ranks #80 out of 255 companies for Interest Coverage. This puts Dollar Tree in the upper half of its industry. The industry median Interest Coverage is 8.80. Dollar Tree's value of 29.04 is 230% above this benchmark. Historically, Dollar Tree's own Interest Coverage has ranged from 4.54 to 22.03 over the past decade. While the company's 10-year median is 11.48 vs. the industry median of 8.80, Dollar Tree has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Retail - Defensive company?
The median Interest Coverage among Retail - Defensive companies is 8.80, based on 255 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dollar Tree's current Interest Coverage of 29.04 is 230% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Dollar Tree and its competitors. For the Retail - Defensive industry, the median Interest Coverage is 8.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dollar Tree's current Interest Coverage is 29.04, which is 153% above median its own 10-year median of 11.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dollar Tree stock overvalued right now?
Based on GuruFocus' analysis, Dollar Tree (DLTR) is currently considered Modestly Undervalued. The stock's GF Value™ is $145.99, compared to a current price of $123.87 — trading 15.2% below its estimated fair value. The current Interest Coverage is 29.04, which is 153% above median its 10-year median of 11.48 and 230% above the Retail - Defensive industry median of 8.80. Dollar Tree's overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Dollar Tree (DLTR), the current Interest Coverage is 29.04 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dollar Tree (DLTR) Overvalued in 2026?
Based on GuruFocus' analysis, Dollar Tree stock appears to be undervalued.
The current stock price of $123.87 is trading 15.2% below its estimated GF Value™ of $145.99.
GuruFocus considers Dollar Tree to be Modestly Undervalued.
Key valuation signals for DLTR:
Interest Coverage: 29.04 (153% above median its 10-year median of 11.48)
GF Value™: $145.99 vs. price of $123.87 (15.2% below fair value)
Industry Position: 230% above the Retail - Defensive median (#80 of 255)
No single metric tells the full story. See the DLTR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1986, Dollar Tree operates almost 9,000 small-box discount stores across the United States and Canada, offering roughly 85% of its merchandise under $2. The chain targets value-conscious suburban and urban shoppers with a mix of consumables (49% of sales), variety (45%), and seasonal goods (6%). In fiscal 2025, Dollar Tree generated over $19 billion in sales, through its multi-price strategy, higher-margin discretionary assortments, and private-label products that account for nearly one-third of sales.
76GF Score
Get the complete analysis for DLTR
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