Dollar Tree Revenue vs. Net Income
| DLTR Stock | MXN 1,512 59.00 4.06% |
For Dollar Tree profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dollar Tree to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dollar Tree utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dollar Tree's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dollar Tree over time as well as its relative position and ranking within its peers.
Dollar |
Dollar Tree Net Income vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Dollar Tree's current stock value. Our valuation model uses many indicators to compare Dollar Tree value to that of its competitors to determine the firm's financial worth. Dollar Tree is rated # 3 in revenue category among its peers. It also is rated # 3 in net income category among its peers making up about 0.05 of Net Income per Revenue. The ratio of Revenue to Net Income for Dollar Tree is roughly 19.82 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Dollar Tree by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Dollar Tree's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Dollar Revenue vs. Competition
Dollar Tree is rated # 3 in revenue category among its peers. Market size based on revenue of Discount Stores industry is currently estimated at about 167.97 Billion. Dollar Tree retains roughly 26.32 Billion in revenue claiming about 16% of equities under Discount Stores industry.
Dollar Net Income vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Dollar Tree |
| = | 26.32 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Dollar Tree |
| = | 1.33 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Dollar Net Income Comparison
Dollar Tree is rated # 2 in net income category among its peers.
Dollar Tree Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Dollar Tree, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dollar Tree will eventually generate negative long term returns. The profitability progress is the general direction of Dollar Tree's change in net profit over the period of time. It can combine multiple indicators of Dollar Tree, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
It operates through two segments, Dollar Tree and Family Dollar. The company was founded in 1986 and is headquartered in Chesapeake, Virginia. DOLLAR TREE operates under Discount Stores classification in Mexico and is traded on Mexico Stock Exchange. It employs 60217 people.
Dollar Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Dollar Tree. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Dollar Tree position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Dollar Tree's important profitability drivers and their relationship over time.
Use Dollar Tree in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dollar Tree position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dollar Tree will appreciate offsetting losses from the drop in the long position's value.Dollar Tree Pair Trading
Dollar Tree Pair Trading Analysis
The ability to find closely correlated positions to Dollar Tree could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dollar Tree when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dollar Tree - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dollar Tree to buy it.
The correlation of Dollar Tree is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dollar Tree moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dollar Tree moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dollar Tree can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Dollar Tree position
In addition to having Dollar Tree in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Dollar Stock Analysis
When running Dollar Tree's price analysis, check to measure Dollar Tree's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dollar Tree is operating at the current time. Most of Dollar Tree's value examination focuses on studying past and present price action to predict the probability of Dollar Tree's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dollar Tree's price. Additionally, you may evaluate how the addition of Dollar Tree to your portfolios can decrease your overall portfolio volatility.