DLTR (Dollar Tree) Moat Score: 6/10 (As of Jul. 01, 2026)


DLTR Dollar Tree Inc DLTR
79 GF Score
Price $121.15
GF Value $146.17
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Dollar Tree Moat Score?

Dollar Tree DLTR +0.17% 79 Moat Score is 6 as of Jul. 01, 2026. GuruFocus rates DLTR with a GF Score™ of 79/100 and a GF Value™ of $146.17 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 315 Retail - Defensive companies, Dollar Tree ranks better than 96.83% on this metric.

Dollar Tree has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Dollar Tree has Narrow Moat: Dollar Tree benefits from economies of scale and a strong distribution network, providing cost advantages. Its brand strength and customer loyalty in the discount retail sector support a strong narrow moat, though competition limits a wider moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Dollar Tree might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Dollar Tree  (NAS:DLTR) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Dollar Tree Moat Score Related Terms

DLTR vs DG, BJ, PSMT: Moat Score Comparison

For the Discount Stores subindustry, Dollar Tree's Moat Score, along with its competitors' market caps and Moat 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 Moat Score vs Retail - Defensive Industry

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

* The bar in red indicates where Dollar Tree's Moat Score falls into.


DLTR
79GF Score
Dollar Tree Inc DLTR
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
Dollar Tree (DLTR) has a Moat Score of 6 as of Jul. 01, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Dollar Tree ranks #10 out of 315 companies in the Retail - Defensive industry, placing it in the top 3.2%.
Is Dollar Tree's Moat Score too high?
Dollar Tree's current Moat Score is 6. Based on the distribution chart, Dollar Tree ranks #10 out of 315 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, Dollar Tree has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dollar Tree's Moat Score compare to DG and BJ?
According to the Retail - Defensive industry distribution chart, Dollar Tree ranks #10 out of 315 companies for Moat Score. This places Dollar Tree in the top 3% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Retail - Defensive company?
A good Moat Score depends on the Retail - Defensive industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Dollar Tree's current Moat Score is 6. 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 $146.17, compared to a current price of $121.15 — trading 17.1% below its estimated fair value. The current Moat Score is 6. Dollar Tree's overall GF Score™ is 79/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Dollar Tree (DLTR), the current Moat Score is 6 as of Jul. 01, 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 $121.15 is trading 17.1% below its estimated GF Value™ of $146.17. GuruFocus considers Dollar Tree to be Modestly Undervalued.

Key valuation signals for DLTR:

  • Moat Score: 6
  • GF Value™: $146.17 vs. price of $121.15 (17.1% below fair value)
  • GF Score™: 79/100 with 2 warning signs

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.

Dollar Tree Business Description

Address 500 Volvo Parkway, Chesapeake, VA, USA, 23320
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.
79GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$121.15
Price
$146.17
GF Value