Dollar TreeDLTR +4.79%76 Altman Z2-Score is 2.29 as of Jun. 28, 2026, which is 1% above its 10-year median of 2.27. 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 304 Retail - Defensive companies, Dollar Tree ranks worse than 55.59% on this metric.
Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.
Dollar Tree has a Altman Z2-Score of 2.29, indicating it is in Grey Zones. This implies that Dollar Tree is in some kind of financial stress. If it is below 1.1, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.
The historical rank and industry rank for Dollar Tree's Altman Z2-Score or its related term are showing as below:
DLTR'
s Altman Z2-Score Range Over the Past 10 Years
Min: 0.73 Med: 2.27 Max: 3.27
Current: 2.29
During the past 13 years, Dollar Tree's highest Altman Z2-Score was 3.27. The lowest was 0.73. And the median was 2.27.
Dollar Tree (NAS:DLTR) Altman Z2-Score Explanation
The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
Altman Z2-Score does not apply to financial companies.
Dollar Tree Altman Z2-Score Related Terms
Dollar Tree Altman Z2-Score Historical Data
* Premium members only.
The historical data trend for Dollar Tree's Altman Z2-Score 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 Altman Z2-Score, along with its competitors' market caps and Altman Z2-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 Altman Z2-Score vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where Dollar Tree's Altman Z2-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.
Dollar Tree's Altman Z2-Score for today is calculated with this formula:
Z
=
6.56
*
X1
+
3.26
*
X2
+
6.72
*
X3
+
1.05
*
X4_2
=
6.56
*
0.0372
+
3.26
*
0.2573
+
6.72
*
0.1264
+
1.05
*
0.3399
=
2.29
* 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. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.
Dollar Tree (DLTR) has a Altman Z2-Score of 2.29 as of Jun. 28, 2026. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Dollar Tree and its competitors. This is near median its historical median of 2.27. Over the past decade, Dollar Tree's Altman Z2-Score has ranged from 0.73 to 3.27. According to the industry distribution chart, Dollar Tree ranks #169 out of 304 companies in the Retail - Defensive industry, placing it in the top 55.6%.
Is Dollar Tree's Altman Z2-Score too high?
Dollar Tree's current Altman Z2-Score of 2.29 is near median its 10-year median of 2.27. Over the past 10 years, this metric has ranged from a low of 0.73 to a high of 3.27. The Retail - Defensive industry median Altman Z2-Score is 2.68. Dollar Tree's value of 2.29 is 14.6% below this industry median. Based on the distribution chart, Dollar Tree ranks #169 out of 304 companies in the Retail - Defensive industry, which is below 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 Altman Z2-Score compare to DG and BJ?
According to the Retail - Defensive industry distribution chart, Dollar Tree ranks #169 out of 304 companies for Altman Z2-Score. This places Dollar Tree in the lower half of its industry. The industry median Altman Z2-Score is 2.68. Dollar Tree's value of 2.29 is 14.6% below this benchmark. Historically, Dollar Tree's own Altman Z2-Score has ranged from 0.73 to 3.27 over the past decade. While the company's 10-year median is 2.27 vs. the industry median of 2.68, 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 Altman Z2-Score for a Retail - Defensive company?
The median Altman Z2-Score among Retail - Defensive companies is 2.68, based on 304 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z2-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z2-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dollar Tree's current Altman Z2-Score of 2.29 is 14.6% 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 Altman Z2-Score mean?
A high Altman Z2-Score can signal that a stock is expensive relative to its fundamentals. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Dollar Tree and its competitors. For the Retail - Defensive industry, the median Altman Z2-Score is 2.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dollar Tree's current Altman Z2-Score is 2.29, which is near median its own 10-year median of 2.27. 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 Altman Z2-Score is 2.29, which is near median its 10-year median of 2.27 and 14.6% below the Retail - Defensive industry median of 2.68. 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 Altman Z2-Score calculated?
Altman Z2-Score is calculated from a company's financial statements. For Dollar Tree (DLTR), the current Altman Z2-Score is 2.29 as of Jun. 28, 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:
Altman Z2-Score: 2.29 (near median its 10-year median of 2.27)
GF Value™: $145.99 vs. price of $123.87 (15.2% below fair value)
Industry Position: 14.6% below the Retail - Defensive median (#169 of 304)
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
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