Dollar TreeDLTR +3.30%77 3-Year ROIIC % is 4.12 as of Jan. 2026, which is 64% above its 10-year median of 2.51. GuruFocus rates DLTR with a GF Score™ of 77/100 and a GF Value™ of $146.60 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 295 Retail - Defensive companies, Dollar Tree ranks worse than 57.29% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Dollar Tree's 3-Year ROIIC % for the quarter that ended in Jan. 2026 was 4.12%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Dollar Tree's 3-Year ROIIC % or its related term are showing as below:
DLTR's 3-Year ROIIC % is ranked worse than 57.29% of 295
companies
in the Retail - Defensive industry
Industry Median: 6.07
vs DLTR: 4.12
Dollar Tree (NAS:DLTR) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Dollar Tree 3-Year ROIIC % Related Terms
Dollar Tree 3-Year ROIIC % Historical Data
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The historical data trend for Dollar Tree's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Dollar Tree's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Dollar Tree (DLTR) has a 3-Year ROIIC % of 4.12 as of Jan. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Dollar Tree and its competitors. This is 64% above median its historical median of 2.51. According to the industry distribution chart, Dollar Tree ranks #169 out of 295 companies in the Retail - Defensive industry, placing it in the top 57.3%.
Is Dollar Tree's 3-Year ROIIC % too high?
Dollar Tree's current 3-Year ROIIC % of 4.12 is 64% above median its 10-year median of 2.51. The Retail - Defensive industry median 3-Year ROIIC % is 6.07. Dollar Tree's value of 4.12 is 32.1% below this industry median. Based on the distribution chart, Dollar Tree ranks #169 out of 295 companies in the Retail - Defensive industry, which is below the industry midpoint. 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 3-Year ROIIC % compare to DG and BJ?
According to the Retail - Defensive industry distribution chart, Dollar Tree ranks #169 out of 295 companies for 3-Year ROIIC %. This places Dollar Tree in the lower half of its industry. The industry median 3-Year ROIIC % is 6.07. Dollar Tree's value of 4.12 is 32.1% below this benchmark. While the company's 10-year median is 2.51 vs. the industry median of 6.07, Dollar Tree has consistently been below 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 3-Year ROIIC % for a Retail - Defensive company?
The median 3-Year ROIIC % among Retail - Defensive companies is 6.07, based on 295 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dollar Tree's current 3-Year ROIIC % of 4.12 is 32.1% below 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Dollar Tree and its competitors. For the Retail - Defensive industry, the median 3-Year ROIIC % is 6.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dollar Tree's current 3-Year ROIIC % is 4.12, which is 64% above median its own 10-year median of 2.51. 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 $146.60, compared to a current price of $124.91 — trading 14.8% below its estimated fair value. The current 3-Year ROIIC % is 4.12, which is 64% above median its 10-year median of 2.51 and 32.1% below the Retail - Defensive industry median of 6.07. Dollar Tree's overall GF Score™ is 77/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Dollar Tree (DLTR), the current 3-Year ROIIC % is 4.12 as of Jan. 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 $124.91 is trading 14.8% below its estimated GF Value™ of $146.60.
GuruFocus considers Dollar Tree to be Modestly Undervalued.
Key valuation signals for DLTR:
3-Year ROIIC %: 4.12 (64% above median its 10-year median of 2.51)
GF Value™: $146.60 vs. price of $124.91 (14.8% below fair value)
Industry Position: 32.1% below the Retail - Defensive median (#169 of 295)
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.
77GF Score
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