Dollar Tree, Inc. (NASDAQ:DLTR) is a well-known discount retailer in the United States, offering a wide range of products at low prices. The company operates thousands of stores across the country, providing consumers with affordable essentials. Dollar Tree competes with other discount retailers like Dollar General and Family Dollar, focusing on value-driven shopping experiences.
On December 3, 2025, Dollar Tree reported earnings per share (EPS) of $1.21, exceeding the estimated $1.09. This represents an EPS surprise of 11.01%, as highlighted by Zacks. Despite a revenue decline of 37.2% compared to the previous year, the company generated $4.75 billion in revenue, slightly above the Zacks Consensus Estimate of $4.74 billion, resulting in a positive surprise of 0.12%.
Dollar Tree's stock is on an upward trend, driven by its effective pricing strategy. The company offers a wide range of bargain items, with an average price of $1.40 each, attracting consumers to spend more. This strategy has proven successful, as the company surpassed sales expectations and increased its annual profit forecast, anticipating strong demand for its affordable products.
Financially, Dollar Tree has a price-to-sales ratio of approximately 1.25, indicating that investors are willing to pay $1.25 for every dollar of sales. The enterprise value to sales ratio is about 1.50, reflecting a slightly higher valuation when considering debt and cash. The enterprise value to operating cash flow ratio is around 13.97, showing the company's ability to generate cash relative to its valuation.
Dollar Tree's debt-to-equity ratio is approximately 1.51, indicating significant debt financing compared to equity. The current ratio is about 0.96, suggesting that the company has slightly less than enough current assets to cover its current liabilities. Despite these figures, Dollar Tree remains optimistic about its future performance, expecting lower input costs to mitigate tariff-related uncertainties.
