Dollar TreeDLTR +5.24%75 ROE % is 38.26% as of Apr. 2026, which is 113% above its 10-year median of 18.00. GuruFocus rates DLTR with a GF Score™ of 75/100 and a GF Value™ of $145.91 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 306 Retail - Defensive companies, Dollar Tree ranks better than 93.79% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Dollar Tree's annualized net income for the quarter that ended in Apr. 2026 was $1,389 Mil. Dollar Tree's average Total Stockholders Equity over the quarter that ended in Apr. 2026 was $3,631 Mil. Therefore, Dollar Tree's annualized ROE % for the quarter that ended in Apr. 2026 was 38.26%.
The historical rank and industry rank for Dollar Tree's ROE % or its related term are showing as below:
DLTR'
s ROE % Range Over the Past 10 Years
Min: -53.68 Med: 18 Max: 35.27
Current: 35.27
During the past 13 years, Dollar Tree's highest ROE % was 35.27%. The lowest was -53.68%. And the median was 18.00%.
DLTR's ROE % is ranked better than 93.79% of 306
companies
in the Retail - Defensive industry
Industry Median: 8.53
vs DLTR: 35.27
Dollar Tree (NAS:DLTR) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Dollar Tree ROE % Related Terms
Dollar Tree ROE % Historical Data
* Premium members only.
The historical data trend for Dollar Tree's ROE % 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.
For the Discount Stores subindustry, Dollar Tree's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's ROE % distribution charts can be found below:
* The bar in red indicates where Dollar Tree's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Dollar Tree (DLTR) has a ROE % of 38.26% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Dollar Tree and its competitors. This is 113% above median its historical median of 18.00. According to the industry distribution chart, Dollar Tree ranks #19 out of 306 companies in the Retail - Defensive industry, placing it in the top 6.2%.
Is Dollar Tree's ROE % too high?
Dollar Tree's current ROE % of 38.26% is 113% above median its 10-year median of 18.00. The Retail - Defensive industry median ROE % is 8.53. Dollar Tree's value of 38.26% is 348.5% above this industry median. Based on the distribution chart, Dollar Tree ranks #19 out of 306 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 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dollar Tree's ROE % compare to DG and BJ?
According to the Retail - Defensive industry distribution chart, Dollar Tree ranks #19 out of 306 companies for ROE %. This places Dollar Tree in the top 6% of its industry — outperforming the majority of peers. The industry median ROE % is 8.53. Dollar Tree's value of 38.26% is 348.5% above this benchmark. While the company's 10-year median is 18.00 vs. the industry median of 8.53, 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 ROE % for a Retail - Defensive company?
The median ROE % among Retail - Defensive companies is 8.53, based on 306 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dollar Tree's current ROE % of 38.26% is 348.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Dollar Tree and its competitors. For the Retail - Defensive industry, the median ROE % is 8.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dollar Tree's current ROE % is 38.26%, which is 113% above median its own 10-year median of 18.00. 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 $145.91, compared to a current price of $119.35 — trading 18.2% below its estimated fair value. The current ROE % is 38.26%, which is 113% above median its 10-year median of 18.00 and 348.5% above the Retail - Defensive industry median of 8.53. Dollar Tree's overall GF Score™ is 75/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Dollar Tree (DLTR), the current ROE % is 38.26% 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 $119.35 is trading 18.2% below its estimated GF Value™ of $145.91.
GuruFocus considers Dollar Tree to be Modestly Undervalued.
Key valuation signals for DLTR:
ROE %: 38.26% (113% above median its 10-year median of 18.00)
GF Value™: $145.91 vs. price of $119.35 (18.2% below fair value)
Industry Position: 348.5% above the Retail - Defensive median (#19 of 306)
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.
75GF Score
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