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Dollar TreeFRA:DT3 +1.76%77 Return-on-Tangible-Equity is 43.41% as of Apr. 2026, which is 15% below its 10-year median of 51.26. GuruFocus rates FRA:DT3 with a GF Score™ of 77/100 and a GF Value™ of €128.93 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 301 Retail - Defensive companies, Dollar Tree ranks better than 84.39% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Dollar Tree's annualized net income for the quarter that ended in Apr. 2026 was €1,188 Mil. Dollar Tree's average shareholder tangible equity for the quarter that ended in Apr. 2026 was €2,736 Mil. Therefore, Dollar Tree's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 43.41%.
The historical rank and industry rank for Dollar Tree's Return-on-Tangible-Equity or its related term are showing as below:
FRA:DT3'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -58.01 Med: 51.26 Max: 146.49
Current: 39.89
During the past 13 years, Dollar Tree's highest Return-on-Tangible-Equity was 146.49%. The lowest was -58.01%. And the median was 51.26%.
FRA:DT3's Return-on-Tangible-Equity is ranked better than 84.39% of 301
companies
in the Retail - Defensive industry
Industry Median: 11.18
vs FRA:DT3: 39.89
Dollar Tree (FRA:DT3) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Dollar Tree Return-on-Tangible-Equity Related Terms
Dollar Tree Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Dollar Tree's Return-on-Tangible-Equity 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.
FRA:DT3 vs DG, BJ, PSMT: Return-on-Tangible-Equity Comparison
For the Discount Stores subindustry, Dollar Tree's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Dollar Tree's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 43.41% mean?
Dollar Tree (FRA:DT3) has a Return-on-Tangible-Equity of 43.41% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Dollar Tree and its competitors. This is 15% below median its historical median of 51.26. According to the industry distribution chart, Dollar Tree ranks #47 out of 301 companies in the Retail - Defensive industry, placing it in the top 15.6%.
Is Dollar Tree's Return-on-Tangible-Equity too high?
Dollar Tree's current Return-on-Tangible-Equity of 43.41% is 15% below median its 10-year median of 51.26. The Retail - Defensive industry median Return-on-Tangible-Equity is 11.18. Dollar Tree's value of 43.41% is 288.3% above this industry median. Based on the distribution chart, Dollar Tree ranks #47 out of 301 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 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dollar Tree's Return-on-Tangible-Equity compare to DG and BJ?
According to the Retail - Defensive industry distribution chart, Dollar Tree ranks #47 out of 301 companies for Return-on-Tangible-Equity. This places Dollar Tree in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.18. Dollar Tree's value of 43.41% is 288.3% above this benchmark. While the company's 10-year median is 51.26 vs. the industry median of 11.18, 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 Return-on-Tangible-Equity for a Retail - Defensive company?
The median Return-on-Tangible-Equity among Retail - Defensive companies is 11.18, based on 301 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dollar Tree's current Return-on-Tangible-Equity of 43.41% is 288.3% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Dollar Tree and its competitors. For the Retail - Defensive industry, the median Return-on-Tangible-Equity is 11.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dollar Tree's current Return-on-Tangible-Equity is 43.41%, which is 15% below median its own 10-year median of 51.26. 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 (FRA:DT3) is currently considered Modestly Undervalued. The stock's GF Value™ is €128.93, compared to a current price of €111.12 — trading 13.8% below its estimated fair value. The current Return-on-Tangible-Equity is 43.41%, which is 15% below median its 10-year median of 51.26 and 288.3% above the Retail - Defensive industry median of 11.18. Dollar Tree's overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Dollar Tree (FRA:DT3), the current Return-on-Tangible-Equity is 43.41% 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 (FRA:DT3) Overvalued in 2026?
Based on GuruFocus' analysis, Dollar Tree stock appears to be undervalued.
The current stock price of €111.12 is trading 13.8% below its estimated GF Value™ of €128.93.
GuruFocus considers Dollar Tree to be Modestly Undervalued.
Key valuation signals for FRA:DT3:
Return-on-Tangible-Equity: 43.41% (15% below median its 10-year median of 51.26)
GF Value™: €128.93 vs. price of €111.12 (13.8% below fair value)
Industry Position: 288.3% above the Retail - Defensive median (#47 of 301)
No single metric tells the full story. See the FRA:DT3 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.
77GF Score
Get the complete analysis for FRA:DT3
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