Dollar Tree Inc. (NASDAQ:DLTR)

Price to Earnings (P/E) Ratio

The P/E ratio displayed variability over the reported periods. It decreased from 20.18 in early 2017 to a low of 13.26 in early 2018. Data for early 2019 is missing, but by early 2020 the ratio increased significantly to 21.75, followed by a slight decline to 18.97 in early 2021. The most recent figure in early 2022 shows a notable rise to 25.61, indicating increased investor willingness to pay for earnings compared to prior years.

Price to Operating Profit (P/OP) Ratio

This ratio generally trended upward across the periods with available data. Starting at 10.61 in 2017, it rose moderately to 11.37 in 2018, with a gap in 2019 data. From 2020 onward, the ratio increased further from 14.25 to 13.48 and then sharply to 18.77 by 2022. This suggests a growing market valuation relative to operating profits, especially notable in the latest period.

Price to Sales (P/S) Ratio

The P/S ratio fluctuated over the periods. It initially increased from 0.87 in 2017 to 1.02 in 2018 and to 1.09 in 2019, then dropped to 0.76 in 2020. Subsequently, it rebounded to 1.00 in 2021 and further climbed to 1.29 in 2022, marking the highest level in the dataset. This pattern indicates variable investor valuation relative to the company’s total sales, with recovery and growth in the most recent years.

Price to Book Value (P/BV) Ratio

The P/BV ratio showed notable fluctuation. Beginning at 3.36 in 2017, it decreased slightly to 3.16 in 2018 before rising sharply to 4.40 in 2019. It then dropped again to 2.88 in 2020, followed by increases to 3.49 in 2021 and reaching 4.41 in 2022, the highest value reported. These movements reflect changing market perceptions of the company’s net asset value, with fluctuations potentially influenced by book value changes or market sentiment.

Share Price Trend

The share price exhibited an overall upward trajectory from 2017 to 2022. Starting at $76.55 in early 2017, it increased steadily to $95.75 in 2018 and further to $104.22 in 2019. A decline followed in 2020, bringing the price down to $75.97. However, the price rebounded significantly in the subsequent years, reaching $109.04 in 2021 and peaking at $151.06 by early 2022. This pattern indicates volatility around 2020, likely influenced by external factors, but a strong recovery and growth in the following period.

Earnings per Share (EPS) Analysis

EPS displayed considerable fluctuations within the timeframe. Beginning at $3.79 in 2017, EPS rose markedly to $7.22 in 2018. The subsequent year saw a sharp reversal, with EPS turning negative to -$6.68 in 2019. Recovery occurred in 2020, as EPS returned to positive territory at $3.49, followed by a continued increase to $5.75 in 2021 and $5.90 in 2022. This volatility, especially the negative EPS in 2019, suggests operational or market challenges during that year, with effective measures taken to restore profitability thereafter.

Price-to-Earnings (P/E) Ratio Movement

The P/E ratio demonstrated variability corresponding to changes in share price and EPS. The ratio decreased from 20.18 in 2017 to 13.26 in 2018, then was not reported for 2019, likely due to the negative EPS making the ratio undefined. It reappeared at 21.75 in 2020, declined slightly to 18.97 in 2021, then rose to 25.61 in 2022. The rise in 2022 indicates an increased market valuation relative to earnings, possibly reflecting investor optimism or growth expectations following recovery from the 2019 downturn.

Share Price Trend

The share price demonstrated an overall upward trajectory from 2017 to 2022. Starting at $76.55 in January 2017, the price increased steadily, reaching $95.75 in February 2018 and $104.22 in February 2019. Despite a decline to $75.97 in February 2020, the price rebounded significantly, climbing to $109.04 in January 2021 and peaking at $151.06 by January 2022. This pattern suggests resilience and strong market performance, particularly in the latter years.

Operating Profit per Share

Operating profit per share showed variability over the analyzed periods. It rose from $7.21 in January 2017 to a peak of $8.42 in February 2018, then experienced a notable decline to a negative value of -$3.94 in February 2019. This negative figure indicates operational challenges during that period. Subsequently, the operating profit per share recovered to $5.33 in February 2020 and continued to improve, reaching $8.09 in January 2021, before slightly decreasing to $8.05 in January 2022. This recovery trajectory suggests the company managed to overcome previous operational difficulties and restore profitability.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio was relatively stable around 10.61 to 11.37 in the years 2017 and 2018, reflecting moderate valuation levels relative to operating profit per share. Data for 2019 is missing, limiting assessment for that year. In 2020, the ratio increased to 14.25, indicating a higher market valuation relative to operating profit, possibly reflecting investor optimism despite lower profitability. The ratio remained elevated at 13.48 in 2021 and rose sharply to 18.77 by 2022. This rising trend in P/OP ratio suggests increasing investor willingness to pay a premium, potentially anticipating future earnings growth or reflecting broader market valuation trends.

The financial data shows several notable trends over the analyzed periods. The share price exhibits fluctuations with an overall upward trajectory, reaching its peak in the most recent period. Specifically, it starts at $76.55, climbs to $104.22 by 2019, briefly declines in 2020, and then rises significantly to $151.06 by early 2022.

Sales per share demonstrate a steady upward trend throughout all periods. Beginning at $87.68, the value progressively increases each year, reaching $116.88 by 2022. This consistent growth in sales per share indicates ongoing revenue expansion on a per-share basis.

The price-to-sales (P/S) ratio shows some volatility across the periods. It generally aligns with share price movements, reflecting investor valuation relative to sales. Starting at 0.87 in 2017, the ratio increases to 1.09 in 2019, dips to 0.76 in 2020, and then climbs again to 1.29 by 2022. The decline in 2020 suggests a momentary undervaluation relative to sales, possibly influenced by market conditions, before recovering to its highest level at the end of the timeframe.

Share Price

Increased overall with a peak in 2022, minor dip in 2020.

Sales per Share

Consistent growth year over year, indicating increasing revenue per share.

Price-to-Sales Ratio

Fluctuated in line with market valuation, declined in 2020, ended at the highest point in 2022.

In summary, the data reflects growth in both share price and sales per share, alongside a recovering valuation multiple as measured by the P/S ratio, suggesting investor confidence and improving market conditions by the end of the period.

Share Price

The share price exhibited a generally upward trend over the analyzed period, increasing from $76.55 in early 2017 to $151.06 by early 2022. However, this trend was not entirely linear, as a notable decline occurred in early 2020, where the price fell from $104.22 in early 2019 to $75.97. Subsequently, the share price recovered and reached its peak in 2022.

Book Value Per Share (BVPS)

Book value per share showed moderate fluctuations but an overall positive progression, starting at $22.81 in early 2017 and rising to $34.29 in early 2022. A decrease was observed in early 2019 compared to 2018, but following this period, the BVPS trended upwards steadily through 2022.

Price-to-Book Value Ratio (P/BV)

The price-to-book value ratio displayed some volatility over the review period. Initially, it declined slightly from 3.36 in 2017 to 3.16 in 2018, then surged to 4.40 in 2019. It dropped again to 2.88 in 2020 before climbing to 4.41 in 2022. This pattern suggests varying market perceptions of the company's valuation relative to its book value, with the lowest valuation occurring in 2020 coinciding with the share price drop during that period.