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Is this Large Market Cap Stock target price reasonable for Dollar Tree, Inc. (NASDAQ:DLTR)?

The company in question is, Dollar Tree, Inc. (NASDAQ:DLTR) currently with a stock price of 83.28 (0.20% today). The market cap for Dollar Tree, Inc. is 19642.42, and is in the sector Services, and Discount, Variety Stores industry. The target price for Dollar Tree, Inc. is 94.69. Currently Dollar Tree, Inc. is trading with a P/E of 27.65, and a forward P/E of 18.34. Average volume for Dollar Tree, Inc. is 2069.01 and so far today it is 2849200.

Performance in the last year for Dollar Tree, Inc. has been 22.31%. For EPS growth, Dollar Tree, Inc. has seen a growth of -56.40%, and is looking to grow in the next year to 19.59%. More long term stats show that EPS growth has been -4.00% over the last five years and could be 19.07% for the next five years. Dollar Tree, Inc. has seen sales growth quarter over quarter at 65.90%, with EPS growth quarter over quarter at 257.40%. The 20-day simple moving average is -11.25%, with the 200-day simple moving average coming to -0.39%.

Since the IPO date for Dollar Tree, Inc. on the 3/9/1995, Dollar Tree, Inc. has seen performance year to date to be 7.85%. With Dollar Tree, Inc. trading at 83.28, the dividend yield is *TBA, and the EPS is 3.01.

So could Dollar Tree, Inc., be undervalued? Well as said before P/E is 27.65. The PEG is 1.45, P/S is 0.96 and the P/B is at 4.04. The P/cash is 17.9, with P/free cash flow at 19.08.

Dollar Tree, Inc. ability to deal with debt shows that the current ratio is 2, and the quick ratio is 0.7. This is with long term debt/equity at 1.5, and total debt/equity at 1.53.

In terms of margins, Dollar Tree, Inc. has a gross margin of 30.00%, an operating margin of 7.20% and a profit margin of 3.50%.Payout ratio for Dollar Tree, Inc. is 0.00%. Return on assets come to 4.40% with return on investment coming to 7.40%.

Insider ownership for Dollar Tree, Inc., is at 1.80% and institutional ownership comes to 96.50%. Outstanding shares are at 235.86. While shares float is 226.51. The float short is currently 3.95%, and short ratio is 4.33.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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